Key Takeaways for Hiring in Ireland
- Ireland supports expat hiring, but employers must comply with right-to-work and immigration rules.
- Fixed-term contracts convert to indefinite if no justified reason exists or if renewals exceed legal limits.
- Ireland uses the Euro (EUR) and runs a monthly payroll cycle, typically paying employees on the 27th of the month.
- Minimum annual leave is 20 paid days, with 9 public holidays each year.
- The Irish tax system applies progressive income tax, plus PRSI social contributions for both employers and employees.
Continent
Europe
Capital
Dublin
Currency
Euro (EUR)
Language
Irish, English
Payroll Cycle
Monthly
VAT
23%
Quick Facts For Hiring In Ireland
Ireland Employment Contract Overview
Our employment contracts for Ireland follow a straightforward structure designed to meet local legal standards while keeping terms clear for both employers and employees. The table below outlines the key elements to include when hiring in Ireland.
What Do You Need To Include In An Irish Employment Contract?
Irish employment contracts must set out the essential terms of the working relationship from day one.
Here’s the key information that must be included to ensure compliance and clarity for both employer and employee.
Employee Information
- Full name
- ID number
- Role / Job title
- Start date
- Contract duration
- Working hours
- Probation and notice conditions
- Termination provisions
- Compensation details
Payroll
Average employer cost
8.80% to 11.05%
| Category | Details |
|---|---|
| Time-Based Employees | Monthly |
| 13th Salary | Not mandatory in Ireland, but sometimes offered as a bonus |
| Avg employer tax | 8.80% to 11.05% |
Tax Breakdown
Employer Contributions: ~11.05%
| Category | Rate / Details |
|---|---|
| Pay Related Social Insurance (PRSI) | 8.8%–11.05% based on employee income |
| Training Levy (NTF Levy) | Included in PRSI |
Employee Contributions: ~20%–30%+
| Category | Rate / Details |
|---|---|
| PRSI | 4% |
Universal Social Charge (USC)
| Category | Rate / Details |
|---|---|
| Up to €12,012 | 0.5% |
| €12,013–€22,920 | 2% |
| €22,921–€70,044 | 4.5% |
| Over €70,045 | 8% |
Income Tax (Progressive)
| Category | Rate / Details |
|---|---|
| Up to €42,000 | 20% |
| Over €42,000 | 40% |
VAT
| Category | Rate / Details |
|---|---|
| VAT | 23% |
Mandatory Employee Benefits in Ireland
Employment of expats is supported in Ireland.
| Benefits | Provider | Funded Through | Notes |
|---|---|---|---|
| Health Insurance | Government | Payroll Contributions | All residents in Ireland can access the public healthcare system, which is managed by the Health Service Executive (HSE). The system is funded through general taxation and provides subsidized or free services to eligible individuals. |
| Pension/Social Security | Government | Payroll Contributions | Pay-Related Social Insurance (PRSI) is a core pillar of Ireland’s welfare system. Employers and employees contribute to it through payroll, and these contributions fund a wide range of statutory benefits, including unemployment benefits, pensions, illness benefit, maternity and paternity supports, carer’s leave, and more. PRSI contributions are broadly mandatory and administered through the national social welfare system. |
Leave And Holiday Entitlement In Ireland
Annual Leave
Employees are entitled to four weeks of paid annual leave per leave year. Part-time employees earn leave at 8% of hours worked, capped at the equivalent of four full weeks.
Public Holidays
Ireland has nine public holidays each year. If a public holiday falls on a non-working day or the employee works that day, they are entitled to either a paid day off, an additional day of annual leave, or extra pay.
Sick Leave
Under the Sick Leave Act 2022, employees with at least 13 weeks of continuous service can take five paid sick days per calendar year. Sick pay is seventy percent of typical daily earnings, capped at €110 per day.
Maternity Leave
Employees are entitled to 26 weeks of paid maternity leave, plus up toad7 additional weeks of unpaid leave. Payment is provided through Maternity Benefit if the employee meets Pay-Related Social Insurance (PRSI) contribution requirements. Maternity Benefit is €289 per week in 2025.
Paternity Leave
Fathers or partners can take two weeks of paid paternity leave. Paternity Benefit is approximately €289 per week, subject to PRSI eligibility.
Other Types of Leave
-
Parental Leave: Up to 26 weeks of unpaid leave per parent per child, available until the child turns 12 (or 16 if the child has a disability).
-
Parent’s Leave: Nine weeks of paid leave per parent within two years of the child’s birth or adoption. Parent’s Benefit is €289 per week.
-
Carer’s Leave: Unpaid leave to care for someone who requires full-time support.
-
Medical Care Leave: Up to five unpaid days per year for essential medical care of a relevant person.
-
Domestic Violence Leave: Up to five days of paid leave, with no minimum service requirement.
Termination and Offboarding in Ireland
Offboarding in Ireland follows defined legal standards. Employers and employees must meet notice obligations, follow fair procedures, and ensure all final entitlements are settled correctly.
| Type | Possible? |
|---|---|
| Termination for Cause (poor performance, misconduct, etc.) | Yes |
| Termination without Cause | Yes |
| Mutual Termination Agreement (MTA) | Yes |
| Redundancy | Not possible under the EOR setup |
Ireland Employee Resignation
Notice
Form
The employee should notify the employer in writing of their intention to resign (i.e., a resignation letter). The notice must clearly state either the final working date or the length of notice being given.
Notice period
If the employee has worked less than 13 weeks, there is no statutory minimum notice unless the contract specifies one. Statutory notice only applies once the employee has completed 13 weeks of continuous service.
The statutory minimum notice periods are:
-
From 13 weeks up to two years: One week’s notice
-
From two to five years: Two weeks’ notice
-
From five to 10 years: Four weeks’ notice
-
From 10 to 15 years: Six weeks’ notice
-
15 years or more: Eight weeks’ notice
If the employment contract sets a longer notice period than the statutory minimum, the contractual notice period must be followed.
Payment in lieu of notice or notice waiver
The employer and employee may agree to waive the notice period (i.e., allow an early exit) or arrange payment in lieu of notice instead of requiring the employee to work through it.
End-of-Service Benefits
Severance/Gratuity
Employees are not entitled to statutory severance or gratuity when they resign.
Other Benefits
-
The employee must be paid for all salary earned up to the final date of employment.
-
Any unused annual leave must be paid in lieu (i.e. payment for accrued but untaken vacation).
-
If the contract or scheme provides other benefits (e.g., pro-rata bonuses, commissions, allowances), the employer must settle them as long as the employee earned them before the termination date.
-
Statutory public holiday entitlements may also require payment if the period covers such holidays and conditions are met (for example, if the employee worked in previous weeks qualifying them).
Termination Documentation
-
Final payslip showing all pay, deductions, and notice/leave payments.
-
P45 (statement of pay to date and tax deductions) or equivalent record of earnings for tax purposes.
-
If the employee is in a pension scheme, the employer should give information about the pension entitlements (what happens to contributions, portability, etc.).
-
A written record of the resignation (the letter, acknowledgment by employer) should be kept for both parties.
Employer Termination With Cause in Ireland
Acceptable grounds
An employer may dismiss an employee without notice for gross misconduct (i.e., summary dismissal). Gross misconduct refers to behavior so serious that immediate termination is justified. For example, assault, theft, or a major breach of employment policies.
Notice
No notice is required.
End-of-Service Benefits
Severance
Not applicable.
-
Prorated Salary for days worked
-
Accrued unused leave days
Termination Documentation
Termination Letter
Employer Termination Without Cause in Ireland
Acceptable Grounds
A dismissal isn’t considered unfair if it is based on valid grounds such as the employee’s capability, conduct, capacity, contravention of the law (for example, where continuing employment would be illegal), or any other substantial reason.
If an employer dismisses an employee without good cause or acts in a way that is not fair or reasonable, the employee may bring an unfair dismissal claim. In these cases, they can seek compensation, reinstatement, or re-engagement.
Form
Written notice (email or letter)
Notice period
If the employee has been in the continuous service of his employer:
-
For less than two years: One week,
-
For two years or more, but less than five years: Two weeks
-
For five years or more, but less than 10 years: Four weeks
-
For 10 years or more, but less than 15 years: Six weeks
-
For 15 years or more: Eight weeks.
Payment in lieu of notice or notice waiver
Permissible.
End-of-Service Benefits
Severance
Not applicable
Other Benefits
-
Prorated Salary for days worked
-
Accrued unused leave days
Termination Documentation
Termination Letter
Mutual Termination Agreements in Ireland
MTA is a voluntary agreement signed by both parties (employer and employee) to terminate an employment contract by mutual consent.
Notice
If the employee has been in the continuous service of his employer:
-
For less than two years: One week,
-
For two years or more, but less than five years: Two weeks
-
For five years or more, but less than 10 years: Four weeks
-
For 10 years or more, but less than 15 years: Six weeks
-
For 15 years or more: Eight weeks.
Waiver of notice
Permissible and included in final dues.
End-of-Service Benefits
Severance
Severance is ordinarily not payable . However, additional payments may be made when negotiating the MTA.
Other Benefits
-
Prorated salary for days worked
-
Accrued unused leave days
Termination Documentation
Mutual Termination Agreement
Offboarding Process for the End of Fixed-term Contracts in Ireland
Final Payment Deadline
Final pay must be made on or before the next scheduled payday.
Penalty
Maximum fine for non-payment is €1,000.
Visa and Immigration Compliance
-
If a non-EEA employee’s job ends, whether through resignation or dismissal, the employer must return the employment permit to the Department of Enterprise, Trade and Employment within four weeks. Because the permit is tied to the employee’s immigration and residence permission, cancelling it can affect their right to continue residing in Ireland.
-
Employers must also notify the relevant authorities about the termination, ensure full compliance with right-to-work requirements, and keep immigration records up to date.
Supporting Guides
Frequently Asked Questions
What’s the difference between Parental Leave and Parent’s Leave?
Parental Leave is unpaid (up to 26 weeks per child until age 12). Parent’s Leave is paid (nine weeks at €289/week within two years of birth/adoption). They’re separate entitlements with different eligibility and timing rules. Most new parents use Parent’s Leave first.
When do fixed-term contracts automatically become indefinite?
If you can’t justify a business reason for the fixed-term structure, or if you renew beyond legal limits (typically four years or three renewals), the contract automatically converts to indefinite. Always have a clear, documented reason for using fixed-term contracts.
What’s a P45 and when do I issue it?
A P45 is a statement of pay to date and tax deductions. You must issue it when employment ends (resignation or termination). Employees need it for tax purposes when starting a new job. It’s a legal requirement, so don’t skip it.
What happens to non-EEA employees’ work permits when employment ends
You must return the employment permit to the Department of Enterprise, Trade and Employment within four weeks. The permit is tied to their residence permission, so canceling it affects their right to stay in Ireland. They’ll need a new permit with a new employer to remain legally.
