Expanding Your Business: Payroll in Ireland

Payroll in Ireland

Companies with employees in Ireland need to ensure compliance with in-country payroll regulations and changing requirements each year. Here are some labor and payroll regulations to consider when managing employees in Ireland.

Ireland Labor Laws

Contract and Visa Requirements

Employment contracts must be in writing and provided to employees within five days of starting employment.

Foreign workers who do not come from the EU or Switzerland will need a work permit to work in Ireland.

What is the Minimum Wage in Ireland?

Minimum wage is EUR 12.70 per hour for employees over the age of 20. Pay rates vary for younger employees.

Work Week Requirements

The average work week may not exceed 48 hours over a four-month period. 

Severance Requirements

Employees over the age of 16 with more than two years of continuous service at a job are entitled to a statutory redundancy payment which is a lump sum amount based on the employee salary.

Minimum Working Age

Minors under 18 cannot be employed in work that might harm their safety, health, or development, and night work between 11 p.m. and 6 a.m. is prohibited.

Payroll Tax

Tax rates range from 20-40% based on type of income.

Ireland Leave Requirements

All full and part-time employees earn annual leave from the time they begin work.

Most employees are entitled to four weeks of paid annual leave, but this may be less depending on time worked.

In general, employees in Ireland have no legal right to be paid while on sick leave. Employers can agree to pay employees when they are sick, but employers must provide written sick leave policies to employees.

Parental Leave

Maternity leave is paid by the government and employees are entitled to 26 weeks. At least 2 weeks and not more than 16 weeks of leave must be taken before the end of the week in which the baby is due.

Employees can take an additional 16 weeks of unpaid maternity leave after the initial 26 weeks.

Fathers are entitled to two weeks of paid paternity leave, which must be taken consecutively. 

Retirement Policies

There is no set retirement age in Ireland, but the usual retirement age is 65.

Holidays in Ireland 

When planning to hire in Australia, it's crucial to be aware of the official holidays when employees may not be available for work.

• January 1 – New Year’s Day
• March 17 – St. Patrick’s Day
• April 1 – Easter Monday
• May 2 – May Day
• June 6 – June Bank Holiday
• August 1 – August Bank Holiday
• October 31 – October Bank Holiday
• December 25 – Christmas Day
• December 26 – St. Stephen’s Day

Easily Hire and Pay Employees in Ireland

Is Ireland in your hiring or expansion plans? Paylocity can help. Our cloud-based platform helps you navigate the waters of international payroll.

And don’t sweat complicated compliance — our hybrid service model includes a U.S.-based team and in-country experts in Ireland to help when you have questions.

Want to learn more? Request a demo today!