TL;DR, Hiring in Ireland
- Fully-loaded employer cost: ~11.25% PRSI on most professional salaries (Class A1, 2026)
- My Future Fund auto-enrolment: 1.5% employer contribution since 1 January 2026, capped at €80,000 pay, included in the calculator
- 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 A is 11.25% on weekly earnings above €552 (subclass A1, 2026 rate), and 9.00% at or below that threshold, with the reduced rate rising to 9.15% from 1 October 2026 while the 11.25% standard rate is unchanged in the published Class A table. Since 1 January 2026 the My Future Fund auto-enrolment scheme also requires a 1.5% employer contribution on gross pay up to €80,000, rising to 3% in 2029, 4.5% in 2032 and 6% in 2035. Total employer cost typically runs 13–16% above gross for a professional hire.
| Contribution | Employer rate | Notes |
|---|---|---|
| Employer PRSI (Class A1, above €552/week) | 11.25% | Standard 2026 rate, unchanged in the Class A table published for 1 October 2026 onwards. |
| Employer PRSI (Class A0/AX, up to €552/week) | 9.00% | Reduced rate for lower earners; rises to 9.15% from 1 October 2026. |
| My Future Fund (auto-enrolment) | 1.5% | Live since 1 January 2026 on gross pay up to €80,000 (max €1,200/yr). Rises to 3% (2029), 4.5% (2032), 6% (2035). Included in the calculator, assuming an enrolled employee aged 23–59 earning €20,000+ with no other qualifying pension. |
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
- Current law (2026): 5 paid sick days/year at 70% of gross capped at €110/day. The Sick Leave Act 2022 originally envisaged 7 days in 2025 and 10 in 2026; the Minister confirmed in April 2025 that the entitlement stays at 5 days, and no increase order has been made.
- Maternity leave
- 26 weeks at €289/week (Maternity Benefit) + 16 weeks unpaid. Employer top-up not statutory.
- Parent's leave
- 9 weeks paid per parent in the child's first 2 years (9 weeks since 1 August 2024, SI 300/2024); €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) has been collecting contributions since 1 January 2026, your EOR must enrol every eligible employee (aged 23–59, earning €20K+ across all employments, not already in a qualifying 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 (€1,500/year tax-free since 1 January 2025) 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
In the existing illustrative Ireland scenario, a €51,498 EUR annual base salary produces an annual known employer-cost subtotal of €58,064 EUR before EOR fees. That includes €6,566 EUR of modelled employer contributions and statutory funds above salary. Add the provider’s platform fee and separately quoted charges; the platform fee alone is not the total cost of hiring. This salary is an example, not a market-pay benchmark. This is a known subtotal for Class A employment, not an unconditional total. The example includes the modelled My Future Fund employer contribution, but the employee’s age and qualifying pension arrangements must be checked to establish whether auto-enrolment applies. The retirement-savings component remains input-dependent; its inclusion in the example does not establish eligibility for an actual hire.
Separate employer PRSI, any applicable My Future Fund employer contribution, benefits and the EOR platform fee. Confirm the employee’s pension eligibility and employment class, and ask whether the quote includes extra provider charges or a deposit. The guide’s illustrative known subtotal is not a provider invoice.
The existing example includes a modelled employer contribution. For an actual hire, check the employee’s age, earnings and whether they already have a qualifying pension. The canonical result remains input-dependent: the displayed contribution does not mean that every employee must be enrolled.
Yes. My Future Fund auto-enrolment began collecting contributions on 1 January 2026. Employers contribute 1.5% of gross pay up to €80,000, rising to 3% (2029), 4.5% (2032) and 6% (2035). The employee matches the rate and the State adds a top-up, neither of which is an employer cost. Employees aged 23–59 earning €20,000+ across all employments are auto-enrolled unless they already contribute to a qualifying pension; they can opt out in months 7–8.
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.
Since 1 January 2025 Irish employers can give up to €1,500/year per employee in non-cash benefits (e.g. vouchers) free of tax, PRSI, and USC, across a maximum of 5 separate benefits. Common end-of-year retention tool.
Sources
Statutory rates and rules verified against the following authorities. We update this page when rates change.