Payroll & Employment Guide: Ireland

Hiring in Ireland

When hiring in Ireland, employers must provide written terms of employment, register with Revenue, and operate payroll under PAYE, PRSI, and USC rules while respecting minimum wage and working-time obligations.

Key hiring actions include:

• Providing a written contract or statement of terms covering hours, pay, leave, and probation.
• Registering as an employer with Revenue and setting up payroll under PAYE/PRSI/USC.
• Ensuring contract pay rates meet or exceed the national minimum wage (increasing to €14.15/hour from 1 January 2026).
• Correctly classifying workers as employees or contractors for tax and PRSI purposes.

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Employee Benefits

Irish employers must provide statutory leave and public-holiday entitlements, with many organisations offering additional benefits such as pensions and health insurance.

Mandatory / Statutory Benefits:

• Annual leave: minimum 4 working weeks statutory annual leave (usually 20 days for a 5-day week).
• Public holidays: 9 statutory public holidays per year.
• Sick leave: statutory sick-pay scheme, with phased implementation and interaction with social-welfare benefits.
• Maternity, paternity, and parental leave entitlements, funded through social welfare and employer top-ups where applicable.

Typical Employer-Provided Benefits:

• Occupational pension schemes and employer pension contributions
• Private health insurance and wellness benefits
• Flexible benefits, performance bonuses, and stock-based incentives
• Flexible or hybrid working arrangements where suitable

Building a benefits package that combines statutory rights with competitive perks helps attract and retain talent in Ireland’s dynamic labour market.

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Taxes in Ireland

In Ireland, payroll is operated under PAYE (Pay As You Earn) for income tax, with additional deductions for PRSI and the Universal Social Charge (USC). Employers must calculate and remit all payroll taxes to Revenue.

Income Tax:

• Standard rate of 20% up to €44,000 for single individuals, with income above that generally taxed at 40% (bands and credits differ for married or civil partners).
• Tax credits and standard-rate bands are applied through Revenue’s systems to each employee’s payroll record.

PRSI (Pay-Related Social Insurance):

• Employer PRSI (Class A) increased to 11.25% above the higher threshold and 9% for lower weekly earnings from October 2025.
• Employee PRSI (Class A) increased to 4.2% from October 2025, with further small increases scheduled from October 2026.

USC (Universal Social Charge):
USC is charged on gross income at tiered rates. Budget 2026 adjusted several thresholds, so employers should use current Revenue tables when running payroll.

Recent Budget measures (2025–2026) have changed PRSI rates and increased the minimum wage, making it essential to keep payroll systems updated with the latest Revenue and DSP guidance.

Payroll in Ireland

Payroll in Ireland must be run in EUR and in line with Revenue’s real-time reporting requirements under the PAYE modernisation regime.

Payroll Currency: EUR.

Payroll Cycle:
Monthly payroll is most common, though weekly and fortnightly cycles are widely used in certain sectors. The contract should clearly specify payment frequency and date.

Payslips:
Employers must provide itemised payslips showing:

• Gross pay and allowances
• PAYE income tax deducted
• Employee PRSI and USC
• Pension contributions (employer and employee, if applicable)
• Net pay and pay period

Minimum Wage Compliance:
From 1 January 2026, the national minimum wage is scheduled to be €14.15 per hour. Employers must ensure that contracted hourly pay meets or exceeds this rate, with allowances structured in line with law.

Payroll Deadlines & Reporting:
Employer PAYE/PRSI/USC returns and payments are generally due on a monthly basis via Revenue’s online systems. Real-time payroll submissions are required each pay run.

Need help setting up fully compliant Irish payroll, including PRSI, USC, and pension deductions?

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Legal Regulations

Irish employment law is built around a series of statutes, including the Unfair Dismissals Acts and the Organisation of Working Time Act, combined with collective agreements and Revenue/DSP guidance.

Key Employer Obligations:

• Comply with working-time rules, rest breaks, and annual-leave entitlements.
• Follow redundancy and dismissal procedures to minimise the risk of unfair dismissal claims.
• Register with Revenue, provide payslips, and remit all payroll taxes on time.
• Keep up with Budget changes that impact PRSI, minimum wage, and tax bands.

Total Employment Cost:
Employer PRSI is approximately 11.25% for standard earnings and 9% below lower thresholds. When you add pension contributions, health insurance, and other benefits, total employer burden commonly ranges around 15–25% or more on top of gross salary.

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Work Permits & Visas for Ireland

Work-permit requirements in Ireland depend on nationality and the type of role being filled.

EEA / Swiss Nationals:
Citizens of EEA countries and Switzerland do not require a work permit to work in Ireland, though they may need to complete certain registration or tax steps.

Non-EEA Nationals:
Non-EEA nationals typically require an employment permit, such as:

• Critical Skills Employment Permit
• General Employment Permit
• Intra-Company Transfer Permit

Permit eligibility depends on the role, salary level, and qualifications. Employers usually sponsor permits and must ensure visa and residence registration is completed and maintained.

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EOR & PEO Services in Ireland

Using Employer of Record (EOR) and Professional Employer Organisation (PEO) services in Ireland allows you to hire quickly and compliantly without taking on all local administrative complexity yourself.

Employer of Record (EOR) in Ireland:

An EOR becomes the legal employer of your Irish team members while you direct day-to-day work. Typical EOR responsibilities include:

• Issuing Irish-law employment contracts
• Running payroll under PAYE/PRSI/USC and filing required returns
• Administering pensions, statutory leave, and benefits
• Handling termination processing and documentation
• Sponsoring work permits for eligible non-EEA hires where required

PEO Services in Ireland:

PEO services are suited for employers that already have or plan to set up an Irish entity. A PEO can provide:

• HR administration and workforce support
• Payroll management and benefits administration
• Compliance support for Irish labour law and Revenue rules
• Drafting and managing compliant employment documentation

These models reduce risk, speed up market entry, and simplify ongoing HR operations in Ireland.

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Payroll Calculator

Estimate gross-to-net pay, employer PRSI, USC, and income-tax withholding in Ireland using Dhi ADT’s payroll calculator. Select the relevant tax year (2025/2026) to apply the most accurate bands and thresholds.

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