Employer of Record in Ireland

What is an Employer of Record in Ireland?

An Employer of Record (EOR) in Ireland is a strategic partner that acts as the legal employer for your employees residing in Ireland. The EOR takes on all employment responsibilities and liabilities on your behalf, handling payroll, benefits, taxes, and regulatory compliance.

By partnering with an EOR, you can hire employees in Ireland without the need to establish a local entity or navigate complex labor laws.

General Information

• Currency: Euro (EUR)
• Employer Taxes: 8.80% to 11.05%
• Payroll Frequency: Monthly
• Employee Costs: 12%
• Capital: Dublin
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: Since 1 January 2024, the national minimum wage in Ireland is 12.70 EUR per hour. Wage rates are based on age as follows:

Aged under 18: 8.89 EUR

Aged 20+: 12.70 EUR

Aged 19: 11.43 EUR

Aged 18: 10.16 EUR

Payroll

Payroll Cycle: Salaries in Ireland are typically paid on either a weekly or monthly basis. Employers are required to ensure that employees are paid by the last day of the month.

13th Salary

There are no provisions in the law regarding 13th salaries.

Working Hours

General: In Ireland, a standard full-time work week consists of 39 hours. Employers are responsible for ensuring employees receive adequate rest according to the Organization of Working Time Act 1997, which sets rules for maximum working hours and required rest breaks.

A work week cannot exceed an average of 48 hours over a four-month period. Additionally, employees are entitled to 24 consecutive hours of rest within any 7-day period, typically following an 11-hour rest period. Alternatively, if a 24-hour rest period is not provided in one week, the employer can offer two 24-hour rest periods in the following week. Unless otherwise specified in the employment contract, the 24-hour rest period should include a Sunday.

Overtime: Employers in Ireland are not legally required to pay for overtime. Overtime compensation is typically governed by the terms of the employment contract or collective agreements. Many employers do provide higher pay rates for overtime, as specified in the employment contract. In certain sectors, overtime rates may be higher than regular pay rates, as outlined in employment regulation orders and registered employment agreements.

Leave

Annual Leave (Vacation):

An employee’s entitlement to annual leave or holidays is defined by both legislation and the employment contract. The Organization of Working Time Act 1997 stipulates a minimum annual paid leave of four weeks (20 working days). However, an employee’s contract may offer more leave. For part-time workers, the entitlement is calculated as 8.00% of the hours worked, up to a maximum of four working weeks per leave year.

Public Holidays

Public holidays that fall on the weekend are usually moved to a weekday as a day off in lieu.

Sick Days

In Ireland, workers are legally entitled to 5 days of sick pay per year starting from the first day of illness, provided a medical certificate is submitted by the 4th day of sickness. Sick leave can be taken in consecutive or non-consecutive days.

Sick pay is given at 70% of the employee’s regular pay, up to a maximum of €110 per day. To qualify for statutory sick pay, an employee must have been employed for at least 13 weeks. Employers may offer more generous sick pay benefits at their discretion.

This entitlement is part of a phased sick pay legislation plan:

2026: 10 days of sick pay

2023: 3 days of sick pay

2024: 5 days of sick pay

2025: 7 days of sick pay

Maternity Leave

Mothers in Ireland are entitled to 26 weeks (156 days) of maternity leave, with the option to extend this by an additional 16 weeks of unpaid leave immediately following the end of the paid maternity leave. They must take at least two weeks before the expected birth and at least four weeks after.

The entitlement to paid leave is dependent on social insurance (PRSI) contributions, as employers are not required to provide paid maternity leave. To be eligible for PRSI-paid maternity benefits, one of the following conditions must be met:

• At least 39 weeks of PRSI contributions in the 12 months before the start of maternity leave.
• At least 39 weeks of PRSI contributions since beginning work, including 39 weeks of PRSI contributions or credits in the relevant tax year or the following tax year.
• At least 26 weeks of PRSI contributions in the relevant tax year and at least 26 weeks of PRSI contributions in the tax year immediately preceding it.

The weekly standard rate of maternity benefit is €262.00.

Paternity Leave

Fathers or partners of the mother are entitled to 2 weeks of paid paternity leave, which is funded by the Department of Social Protection if the employee has sufficient PRSI contributions. This leave can be taken any time within the first six months after the birth or adoption placement.

Eligible individuals for paternity leave include:

• The biological father of the child
• The partner (spouse, civil partner, or cohabitant) of the child’s mother
• The parent of a donor-conceived child

Employers are not obligated to pay employees during paternity leave. However, employees may be eligible for paternity benefit from the Social Protection department if they meet the PRSI contribution requirements.

Parental Leave

Parent’s leave grants each parent 9 weeks of leave within the first 2 years of a child’s life, including in the case of adoption, for children born on or after August 1st, 2024.

The leave entitlement does not increase with multiple births, such as twins.

Parent’s Leave Benefit, provided by the Department of Social Protection, is available if the employee has met the required PRSI contributions. The benefit amounts to up to €274 per week and is paid by the authorities, not the employer.

Other Leave

Depending on the terms of the collective agreement or employment contract, employees may be entitled to additional types of leave upon mutual agreement with their employer:

• Bereavement Leave: Typically, employees are granted three days of paid leave for the death of an immediate family member. However, this is usually governed by the employment contract rather than statutory requirements.
• Jury Service Leave: Employers are required to provide job-protected but unpaid leave for full-time employees who are called to serve as jurors or witnesses, or who are involved as plaintiffs or defendants in court cases. Employees must present a copy of the jury summons to their employer as proof. While the court provides a specific amount of payment, any additional compensation is at the employer’s discretion.

Would you like to know the approximate cost of employment in Ireland?