Mercans CountryIntel ® Ireland Payroll And HR Insights
Mercans offers complete payroll, PEO and HR services in Ireland
Combining talent, technology infrastructure and a 12.5% corporate tax rate, Ireland presents an excellent FDI (foreign direct investment) opportunity for businesses everywhere. Ireland has undertaken significant investments in communications and technology infrastructure, property development and transportation networks to drive industry growth.
Doing Business in Ireland
This is the fastest growing economy in the Eurozone, with an ‘A’ grade from all major credit rating agencies. A pro-business country, multinational companies invest directly into the Irish economy approximately €19.2 billion including an annual payroll spend of €11.7 billion. Some of the key high-value activities in Ireland include advanced manufacturing, global business services and research development and innovation.
Entity Registration and Incorporation Requirements
Setting up a new business or expanding an existing one in the UK is straightforward. Choose how your company operates from a range of entity types which suit your individual circumstance.
Banks are open from Monday to Friday 10 am to 4 pm.
The standard working week is 39 hours per week usually worked from Monday to Friday
The primary pieces of legislation that govern employment are the Terms of Employment (Information) Acts 1994 - 2014 (which sets out the information that employers must give employees about their employment), the National Minimum Wage Act 2000 (which provides for the national minimum wage), the Payment of Wages Act 1991, the Minimum Notice and Terms of Employment Acts 1973 - 2005 and the Industrial Relations (Amendment) Act 2015.
Agriculture, mining, forestry, and fishing
International Dialing Code
Every employee is entitled to get a payslip with every payment of wages, which must indicate the gross pay, PRSI (Pay Related Social Insurance) and other deductions. For companies that manage global payroll, it is important to note that part-time workers have certain employment rights under the Protection of Employees (Part-Time Work) Act 2001. Any complaints raised that cannot be resolved with the employer may be raised with the WRC (Workplace Relations Commission). The EWSS (Employment Wage Subsidy Scheme) which replaces the TWSS (Temporary Wage Subsidy Scheme), gives employers impacted by COVID-19 a subsidy per employee to help keep them in employment.
It is acceptable to provide employees with online payslips
Payroll reports must be kept for six years
Up to a maximum of seven days self-certified paid sick leave within a continuous two-year period
26 weeks of paid maternity leave and two weeks of paid paternity leave
Maternity & Paternity Leave
There are no legal provisions regarding salaries for the 13th month
€10.20 per hour for workers aged 20 and above
There is no legal right to pay for working extra hours and there are no statutory levels of overtime pay.
2 weeks' pay for every year of service
Tax and Social Security
Employers are responsible for deducting the correct amount of tax, PRSI and Universal Social Charge from their employees’ wages and must remit these to Revenue (Irish Tax and Customs) using the PAYE (Pay as You Earn) system.
The PAYE system is a method of tax deduction under which an employer calculates and deducts any income tax each time a payment of wages or salary is made to an employee. Employers are obliged to report employee pay and statutory deductions to Revenue, on or before the date they pay their workers.
Corporate Income Tax
Personal Income Tax
The social welfare system is divided into three main types of payments: social insurance payments, means-tested payments and universal payments. Each payment type sets out rules for the scheme. There is also a range of employment schemes. Employers are also obliged to calculate and deduct any liability to PRSI (Pay Related Social Insurance), USC ( Universal Social Charge) and LPT (Local Property Tax).
Social Security Rate
Social Security Rate for Employers
Social Security Rate for Employees
Employment laws in Ireland cover a range of issues from young people at work, the terms and conditions of employment, working hours and leave as well as whistleblowing, business takeovers, redundancy and dismissals. Employees have a number of legal employment rights and protections, and in the event of any issue, are able to contact their local Citizens Information Centre.
Employees in particular sectors (such as construction or security) and workers who are represented by a trade union sometimes have their work conditions set out in an employment agreement or employment order. EROs (Employment Regulation Order) set out the minimum rate of pay and conditions of employment. A REA (Registered Employment Agreement) is a collective agreement between a trade union and an employer.
Employers must ensure employee safety, health and welfare at work which includes maintaining safe workplaces, preventing risks and improper conduct and providing training on health and safety. The Workplace Relations Commission has a Code of Practice: Grievance and Disciplinary Procedures which states that employers should have written grievance and disciplinary procedures.
Most employees are entitled to a minimum of four weeks paid annual leave per year. This is calculated based on what is called the leave year (which runs from 1 April to 31 March annually). However, some employers use the calendar year to calculate annual leave.
Generally, if dismissed from their job, a worker is entitled to be paid for all work done and to a final payslip, payment for any annual leave entitlement which has not been used and the correct notice. Dismissal without notice can be done for serious misconduct. Posted workers (sent by their employer to carry out service in another EU Member State on a temporary basis) are entitled to the full range of Irish employee protection.
Minimum notice period for terminating an employee
Total number of public holidays
Working hours per week
± 20 days
Total number of days for Compassionate & Bereavement Leave
Generally, EEA nationals have the right to travel to Ireland and do not require a residence permit to remain (but there are limits to these rights). Non-EEA nationals may be granted permission to remain through various types of residence rights.
If a worker is coming to Ireland from outside the EU and Switzerland and wishes to stay for over 90 days, they must apply for an immigration permission and register it once it is granted. An Irish Residence Permit shows that an individual is legally in the State.
Work Permit validity
The signed and dated online application form summary
A valid passport and visa
A signed letter stating your reasons for traveling
Proof of sufficient financial means to support yourself for the duration of your stay
Proof that you will return to your home country after your visa ends, such as family ties, a work contract, home ownership, lease/rental contract etc
a booked return flight ticket
Proof of accommodation, such as a hotel reservation or a letter from your host (if you have one)
Details of any previous visas you received/were refused for Ireland or any other country
Proof of payment of the visa fee for Ireland
Build the best team and hire top talent compliantly in Ireland. Get in touch with Ireland payroll outsourcing & PEO specialists for a free consultation!