TL;DR, Hiring in Ireland
- Fully-loaded employer cost: ~11.15% PRSI on most professional salaries
- No mandatory employer pension, but auto-enrolment (My Future Fund) phases in 2025–2034
- Statutory minimum 4 weeks (20 days) paid holiday + 10 public holidays
- Strong unfair-dismissal protection kicks in at 12 months' service
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Statutory employer costs in Ireland
In Ireland, employer PRSI (Pay Related Social Insurance) Class A1 is 11.15% on weekly earnings above €496 (2025 rate), and 8.9% below that threshold. There is no statutory employer pension contribution today, though the My Future Fund auto-enrolment scheme begins in 2025 with phased employer contributions reaching 6% by 2034. Total employer cost typically runs 12–14% above gross for a professional hire.
| Contribution | Employer rate | Notes |
|---|---|---|
| Employer PRSI (Class A1, above €496/week) | 11.15% | Standard rate for most full-time professional employees, 2025. |
| Employer PRSI (Class A0, below €496/week) | 8.9% | Reduced rate for low earners. |
| My Future Fund (auto-enrolment) | 1.5% → 6% | Phased 2025–2034. Initial 1.5% employer match, rising every 3 years. |
Mandatory employee benefits
Beyond statutory contributions, Ireland law requires the following benefits the employer must fund.
- Annual leave
- 4 weeks (20 days) statutory + 10 public holidays. Holiday pay = normal weekly pay.
- Statutory Sick Pay
- 5 paid sick days/year (2024), rising to 10 by 2026, at 70% of gross capped at €110/day.
- Maternity leave
- 26 weeks at €289/week (Maternity Benefit) + 16 weeks unpaid. Employer top-up not statutory.
- Parent's leave
- 9 weeks paid (2024) per parent in the child's first 2 years; €289/week state benefit.
Termination, notice and severance
Probation
Maximum 6 months under the EU Transparent and Predictable Working Conditions Directive (2022). Older contracts may show 12 months but post-2022 hires are capped at 6.
Notice period
Statutory minimum: 1 week (13 weeks–2 years), 2 weeks (2–5 yrs), 4 weeks (5–10), 6 weeks (10–15), 8 weeks (>15). Contracts often specify longer.
Severance
Statutory redundancy after 2 years: 2 weeks' pay per year of service + 1 bonus week, capped at €600/week. Unfair Dismissals Acts apply after 12 months, up to 2 years' pay if dismissal is found unfair.
Common compliance pitfalls
- Auto-enrolment (My Future Fund) starts 30 September 2025, your EOR must enrol every eligible employee (age 23–60, earning €20K+, not already in a workplace pension). Missing this triggers fines.
- Probation cap of 6 months (post-2022) is enforced, extending it without written justification voids the probation status and gives the employee full unfair-dismissal protection from month 7.
- Bike-to-work, TaxSaver commuter ticket, and Small Benefit Exemption (€1,000/year tax-free) are common Irish perks, factor in if you're benchmarking offers against UK or US norms.
- Right to Disconnect Code of Practice (2021) is enforceable, out-of-hours contact policies should be documented or you face WRC complaints.
Frequently asked questions
How much does an EOR cost in Ireland?
EOR platform fees for Ireland range from $399–$699 per employee per month. On top, employer PRSI adds 11.15% above the €496/week threshold, plus 4 weeks holiday accrual and (from 2025) 1.5% rising to 6% pension auto-enrolment. Total employer cost typically runs 13–18% above gross.
Does Ireland have mandatory employer pension contributions?
Not yet, but My Future Fund auto-enrolment begins 30 September 2025. Employers must contribute 1.5% initially, rising to 3% in 2028, 4.5% in 2031, and 6% in 2034. Employees aged 23–60 earning €20K+ are auto-enrolled unless already in a workplace pension.
Can I hire in Ireland without an entity post-Brexit?
Yes, via an EOR. Ireland remains an EU member and an Employer of Record is the standard route for foreign companies to hire Irish-resident employees without setting up an Irish Ltd company or branch. PAYE/PRSI runs as normal through the EOR.
What is the Small Benefit Exemption?
Irish employers can give up to €1,000/year per employee in non-cash benefits (e.g. vouchers) free of tax, PRSI, and USC, across a maximum of 2 separate awards. Common end-of-year retention tool.
Sources
Statutory rates and rules verified against the following authorities. We update this page when rates change.