Payroll Information

It is important for both employers and employees to ensure that they have a written employment contract in place that accurately reflects the terms and conditions of their employment relationship.

‍

Payroll Cycle

In Ireland, most employees are paid on a monthly basis. This means that they receive their salary on the same day each month, usually around the 25th. However, some employers may choose to pay their employees on a weekly or bi-weekly basis instead.

‍

Employment Law

Employment law in Ireland is regulated by the Department of Enterprise, Trade and Employment, and is designed to protect the rights of employees and employers. Some of the key employment laws in Ireland include:

• Minimum Wage: The current national minimum wage in Ireland is €10.50 per hour (as of 2023).
• Working Hours: The standard working week in Ireland is 39 hours, although this can vary depending on the industry. Employers are required to provide employees with a certain amount of rest breaks and annual leave.
• Taxation: Employers are responsible for deducting income tax, PRSI (Pay-Related Social Insurance), and USC (Universal Social Charge) from their employees' wages and remitting these amounts to the Revenue Commissioners.
• Maternity and Paternity Leave: Employees in Ireland are entitled to maternity and paternity leave, which is paid by the state.

‍

Employment Contract

Employment contracts in Ireland are legally binding agreements between an employer and employee that outline the terms and conditions of the employment relationship. Some of the key elements of an employment contract in Ireland include:

• Job Title and Description: The employment contract should clearly state the employee's job title and provide a description of their duties and responsibilities.
• Salary and Benefits: The contract should specify the employee's salary and any additional benefits, such as health insurance or pension contributions.
• Working Hours: The contract should specify the standard working hours for the employee, as well as any overtime arrangements.
• Termination: The contract should specify the notice period required for termination, as well as any other termination provisions.
• Confidentiality and Non-Competition: The contract may also include provisions related to confidentiality and non-competition, which are designed to protect the employer's business interests

‍

Probation Period / Trial Period

A probation period is a trial period that is provided to new employees to evaluate their performance and suitability for the job. In Ireland, a probation period can last up to 12 months, although this can vary depending on the terms of the employment contract. During this period, the employer can terminate the employment relationship without notice or pay in lieu of notice.

‍

Working Hours

The standard working week in Ireland is 39 hours, although this can vary depending on the industry and the terms of the employment contract. Employees are entitled to a minimum of 11 consecutive hours of rest between working days and a minimum of 24 consecutive hours of rest in every 7-day period.

‍

Overtime

Employees in Ireland are entitled to overtime pay for any hours worked in excess of the standard working week. The overtime rate is typically 1.5 times the normal hourly rate for the first two hours of overtime and double the normal hourly rate for any additional hours.

‍

Bonus

Employers in Ireland may offer bonuses to their employees as a way of rewarding them for their performance or to incentivize them to meet certain goals or targets. Bonuses can take many forms, including cash payments, stock options, or other benefits. Employers are not required to provide bonuses, but if they do, they must be paid in accordance with the terms of the employment contract.

‍

Termination

Employment relationships in Ireland can be terminated by either the employer or the employee. The termination process must be in accordance with the terms of the employment contract, as well as any relevant employment law. In some cases, employers may need to provide a valid reason for terminating an employee's contract, such as poor performance or misconduct. Employees who are terminated may be entitled to notice pay or a payment in lieu of notice, depending on the terms of the employment contract.

‍

Notice Period

The notice period is the amount of time that an employer or employee must provide before terminating the employment relationship. The notice period can vary depending on the length of service, the terms of the employment contract, and the reason for termination. In Ireland, the minimum notice periods are:

• For employees with less than 13 weeks' service: No notice is required
• For employees with 13 weeks to 2 years' service: 1 week's notice is required
• For employees with 2 to 5 years' service: 2 weeks' notice is required
• For employees with 5 to 10 years' service: 4 weeks' notice is required
• For employees with more than 10 years' service: 8 weeks' notice is required

‍

Redundancy / Severance Pay

Redundancy occurs when an employer terminates an employee's contract due to the fact that their job is no longer required. In Ireland, employers are required to follow a specific procedure when making employees redundant, which includes consulting with the affected employees and providing them with a minimum amount of notice pay. The amount of notice pay that employees are entitled to depends on their length of service and the terms of the employment contract. Employees who are made redundant may also be entitled to a statutory redundancy payment.

‍

Maternity Leave

Female employees in Ireland are entitled to 26 weeks of maternity leave. This is in addition to any annual leave entitlements. During the first 2 weeks of maternity leave, employees are entitled to receive maternity benefit from the government. Some employers may also provide additional paid maternity leave.

‍

Paternity Leave

"Fathers are entitled to 5 weeks of paternity leave that can start any time in the first six months after birth, or placement in the case of an adoption.

Relevant parents are the following:

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

This entitlement is increasing to seven weeks effective from July 2022.

The employer is not required to pay the employee during paternity leave, but the employee may qualify for Paternity Benefit during this time if they have contributed sufficient PRSI contributions."

‍

Parental Leave

Employees in Ireland are entitled to take up to 26 weeks of unpaid parental leave for each child, up to a maximum of 104 weeks. This leave can be taken by either parent and is intended to provide an opportunity to spend time with their children.

‍

Vacation and Annual Leave (paid time off)

Employees in Ireland are entitled to a minimum of 4 weeks' paid annual leave per year. This entitlement may be increased by an additional 1 week's leave for employees who work a 5-day week. Employers may offer more annual leave than the statutory minimum.

‍

Sick Leave

Employees in Ireland are entitled to receive paid sick leave from their employer. The amount of sick pay and the length of time that an employee can receive sick pay will depend on the terms of the employment contract. The standard sick pay entitlement is 10 paid sick days per year, although some employers may offer more.

‍

Other Leave

In addition to the leave entitlements described above, employees in Ireland may be entitled to other forms of leave, such as compassionate leave, force majeure leave, and time off for public duties. These leave entitlements will depend on the terms of the employment contract and any relevant employment law.

‍

Other Benefits

Employers in Ireland may offer a range of additional benefits to their employees, such as health insurance, pension contributions, and company cars. These benefits will depend on the terms of the employment contract and the policies of the employer. Employers may also offer employee perks and discounts on company products or services.

‍

Holiday

Employees in Ireland are entitled to 9 public holidays per year. These holidays are New Year's Day, St. Patrick's Day, Easter Monday, May Day (first Monday in May), June Bank Holiday (first Monday in June), August Bank Holiday (first Monday in August), October Bank Holiday (last Monday in October), Christmas Day, and St. Stephen's Day.

‍

Taxation

‍

Personal Income Tax

Personal income tax in Ireland is progressive, with higher earners paying a higher percentage of their income in taxes. The standard tax rate for most individuals is 20%, applied to income up to €35,300. The higher rate of tax is 40%, applied to income above €35,300. An additional Universal Social Charge (USC) is also applied to most forms of income, with rates ranging from 0.5% to 8% depending on income levels.

The standard tax credits for individuals are as follows:

• Single Person: €1,650
• Married or Civil Partnership: €3,300
• Additional Tax Credit for Widowed Person: €2,190
• Home Carer: €1,800

‍

‍

Social Security

In Ireland, social security contributions are paid by both employees and employers. These contributions are known as Pay-Related Social Insurance (PRSI) and fund a range of social welfare benefits, including state pensions, illness benefits, and jobseeker's benefits.

The PRSI contribution rate for employees in 2023 is 4%, with a maximum contribution of €2,595 per year. Employers are also required to contribute to social security, with a rate of 11.05% applied to employee earnings up to €100,100 per year.

There are different classes of PRSI contributions, with the class of contribution that an employee pays depending on their employment status and income. The rates and classes of PRSI contributions can vary depending on factors such as the employee's age and length of service.

In addition to PRSI contributions, employers may be required to pay other employment-related taxes and contributions, such as the Employment and Training Levy and the National Training Fund Levy. These taxes are calculated based on employee earnings and are paid by the employer.

‍

Visas and Foreign Workers

‍

General Information

There are several types of work visas available for individuals seeking to work in Ireland, including:

1. Critical Skills Employment Permit: This permit is for highly skilled workers and is granted to those who are qualified in certain areas where there are skills shortages in Ireland.
2. General Employment Permit: This permit is for workers in occupations that are not covered by the Critical Skills Employment Permit.
3. Intra-Company Transfer Employment Permit: This permit is for employees of multinational companies who are being transferred to an Irish branch of the same company.
4. Dependant/Partner/Spouse Employment Permit: This permit is for the dependants, partners, or spouses of critical skills permit holders or researchers.
5. Internship Employment Permit: This permit is for non-EU/EEA students who have been offered an internship in Ireland.

‍

Application Process:

The application process for a work visa in Ireland involves several steps:

1. Job offer: The first step is to secure a job offer from an employer in Ireland.
2. Application for the permit: Once a job offer is secured, the employer must apply for the relevant employment permit on behalf of the employee.
3. Application for the visa: Once the employment permit is granted, the employee must apply for a visa to enter Ireland.

‍

Requirements:

The requirements for obtaining a work visa in Ireland may vary depending on the type of permit being applied for. However, some general requirements include:

1. A valid job offer from an employer in Ireland.
2. Proof of qualifications or skills in the relevant area.
3. Evidence of sufficient funds to support oneself in Ireland.
4. A clean criminal record.
5. Proof of medical insurance.

‍

Duration:

The duration of a work visa in Ireland may vary depending on the type of permit being granted. Generally, employment permits are granted for a period of 2 years and can be renewed for an additional 3 years. After 5 years of continuous residency in Ireland, a non-EU/EEA national may be eligible for long-term residency.

It's important to note that visa and permit regulations can change, and it's recommended to check the most up-to-date information with the Irish immigration authorities.

‍