Employment contracts

All supported employees in Ireland must receive a written statement of employment outlining key terms such as salary, job title, work location, hours, probation period, and notice periods. The full contract must be provided within five days of the employee's start date, under the Employment (Miscellaneous Provisions) Act 2018.

Key contract components include:

• Salary and compensation terms
• Job title and description
• Place and hours of work
• Duration of probation period
• Termination notice requirements

Probationary periods

Probationary periods in Ireland typically last up to six months, with a maximum permissible duration of 12 months under the European Union (Transparent and Predictable Working Conditions) Regulations 2022. During probation, employees may be subject to reduced notice periods.

Average working hours

Ireland’s standard workweek is 39 hours, usually spread over five days. Employees are entitled to a daily rest period of 11 consecutive hours and a weekly rest period of 24 straight hours, in compliance with the Organisation of Working Time Act 1997.

How an employer of record helps employers hire in Ireland

Velocity Global’s Employer of Record solution fully complies with Ireland’s employment laws. Businesses can onboard talent in as little as 48 hours while relying on local expertise to manage contracts, worker classification, and labor law compliance.

Payroll cycles

In Ireland, payroll is typically processed monthly or weekly, depending on the industry and employment agreement. Employers must provide detailed payslips outlining gross pay, deductions, and net pay.

Minimum wage

As of January 2025, the national minimum wage in Ireland is €12.70 per hour. Employers must ensure compensation complies with minimum standards set by the government.

Bonus payments

Bonuses are common in Ireland, but not legally mandated. When provided, they must be clearly outlined in the employment agreement to avoid misinterpretation or disputes.

How an EOR helps run payroll in Ireland

Velocity Global handles all aspects of payroll through its Global Work Platform™, including payment calculations, payslip generation, and employer contributions. This process ensures accurate and timely compensation while complying with Irish labor laws.

Tax due dates

Payroll taxes must be reported and remitted to Ireland’s Revenue Commissioners on or before each payday under the Pay As You Earn (PAYE) system. Employers must submit real-time reporting using Revenue’s Online Service (ROS).

Tax thresholds

Income tax in Ireland is progressive, with the standard rate of 20% applying to income up to €42,000 for single individuals. Income above this threshold is taxed at the higher rate of 40%. Employers must also account for Pay Related Social Insurance (PRSI) based on income brackets and the Universal Social Charge (USC) applied on a tier basis.

Health insurance

While public healthcare is available in Ireland, many employees expect supplemental private health insurance. Employers often offer this as a benefit to attract top talent.

Pensions

Auto-enrollment into occupational pension schemes is being phased in starting in 2025. While not mandatory for all companies yet, many employers already offer contributions to a Personal Retirement Savings Account (PRSA) or defined contribution schemes.

How an EOR helps employers manage taxes in Ireland

Velocity Global ensures full compliance with Ireland’s PAYE and social security systems. It calculates deductions, files reports with Revenue Commissioners, and ensures contributions are paid on time, mitigating the risk of penalties.

Annual leave

Full-time employees earn a minimum of four working weeks of paid annual leave per year. Leave accrual is based on the hours worked or the employment contract and can carry over to up to six months (unless extended). Employers must track and document time off.

Parental leave

Per the Parental Leave Act 1998, parents can take up to 26 weeks of unpaid leave per child with an option for an unpaid extension. Parents are also eligible for paid leave and maternity/paternity leave. As of 2025, parents get seven weeks of paid leave.

Sick leave

As of 2025, employees are entitled to five days of statutory sick pay per year, which is paid at 70% of regular earnings up to a daily maximum of €110.

Public holidays

Ireland recognizes 10 national public holidays, including St. Patrick’s Day and Christmas Day. Employees are entitled to a paid day off or compensatory time for these holidays. However, some sectors (e.g., retail) provide alternate time off arrangements. Note that public holidays are separate from annual leave entitlements.

How an EOR helps employers manage leave in Ireland

Velocity Global tracks employee leave balances, ensures compliance with statutory requirements, and manages local holiday observances. It also advises on best practices for offering competitive PTO packages.

Statutory benefits

• Paid time off (annual leave and public holidays)
• Public healthcare access
• Workplace pensions (voluntary or auto-enrolled)

Supplemental benefits

• Private medical insurance and dental care
• Gym memberships and well-being stipends
• Meal vouchers or subsidized lunch programs
• Learning and development allowances

How an EOR helps administer benefits in Ireland

Through its Global Benefits solution, Velocity Global partners with top-tier providers to offer and manage competitive, compliant benefits packages. It ensures that supported employees receive a seamless experience from day one.

Notice periods

• One week for employment under two years
• Two to eight weeks for longer tenures (up to 15+ years)
• Longer notice periods may be specified in contracts

Severance pay

Severance pay is not mandated unless specified in the employment contract or a redundancy situation arises under the Redundancy Payments Acts. After two years of continuous employment, statutory redundancy equals two weeks' pay per year of service, plus one additional week. As of 2025, the amount is capped at €600 per week.

How an EOR supports terminations in Ireland

Velocity Global ensures compliant offboarding by handling required documentation, managing notice period requirements, and providing termination support to minimize legal risks.