Doing Business With an Ireland PEO

Ireland is a popular business location for several multinationals due to low corporate taxes and liberal employment laws. The country has consistently ranked high in the Ease of Doing Business Index and Ease of Starting a Business Index. 

Ireland’s robust banking infrastructure is another advantage for companies to expand into Ireland. Accounting and Finance contribute  significantly to Ireland’s GDP.  Fintech advancements are attracting companies to incorporate their business into Ireland.

Hiring quality talent for STEM and managerial positions shouldn’t be difficult in Ireland. Ireland is a talent hub with the presence of top-class universities, making it easier for companies to hire the right talent.  Ireland has a high literacy rate of 99%. Ireland Gross Enrollment Ratio was at 77% in 2018 and is growing at 3% annually. 

Doing business with an Ireland-based PEO or an Employer of Record (EOR) can help you tap into these many advantages. Although Ireland may not seem to be not a huge consumer market like the UK, the Emerald Isle is a talent powerhouse. With an Employer of Record in Ireland, businesses can tap into the gamut of specialist talent without establishing a subsidiary in the island nation.

Why Use an Ireland PEO?

Ireland’s employment laws aren’t tricky to navigate. Ireland does not have a unified article to govern employment laws. However, distinct articles govern wages, equality, employee well-being, termination, etc. 

With Multiplier’s Employer of Record services in Ireland, employers can hire from Ireland without an entity. Employers and businesses can also expand and ease the hassles of global HR in the island nation.

Ireland PEO Costs

An Ireland-based PEO offers prices on two models - fixed and variable. Employers can choose an Irish PEO that suits their expansion and global hiring strategy. Usually, the cost of a PEO or an Employer of Record in Ireland is between $200 and $1000 per employee per month. 

Multiplier’s PEO and EOR services in Ireland can be availed at fixed rates for every employee. Our prices vary with the complexity of labor laws in the country, impacting employment contracts, benefits and compensation, and payroll.

Multiplier’s SaaS-based PEO solution also sports a dashboard to manage employees worldwide. In addition, features like one-click payroll, automated employment contracts, and tools to offer ESOPS can aid employers in hiring and managing talent in Ireland.

How to Hire in Ireland?

Hiring in Ireland is a fairly straightforward process. Employers post job advertisements on popular job sites to get the right talent for the company. 

However, employers need to know employment laws in Ireland before hiring. Employers need to ensure the terms of employment are accurate while advertising job roles and during the interview process. 

Employers need to abide by the Employment Equality Acts 1998-2005 and ensure that all candidates receive fair and equal employment opportunities.

Moreover, while advertising wages in the job description, employers need to ensure that they abide by the minimum wages set by the Payment of Wages Act.

To stay compliant with these employment laws, it is best to partner with a global PEO service like Multiplier. Navigating through these labor laws and compliantly hiring talent in Ireland becomes a safe affair with our global employment experts.

However, if you would like to do it yourself, here is how to create a compliant employment contract for Irish employees.

Employment contracts

When hiring talent in Ireland, it is essential to consider different employment laws and the regulations made through collective bargaining agreements and create a compliant employment contract.

Employers must remember the followying while creating employment contracts for Irish employees:

  • ~Employment contracts are mandatory in Ireland and are to be provided in writing. Verbal agreements are not valid in Ireland. 
  • ~Employers must ensure that employment contracts are delivered within two months before the start date. 
  • ~Contracts must accurately stipulate working hours, wages,  benefits, termination, and exit formalities. Wages must be determined in Euros and not in any currency. 
  • ~Usually, the terms of the contract are negotiated by the employee. Since literacy levels are quite high, employers can often find themselves in a situation where they have to deal with hard bargains driven by the employee. 

Multiplier’s SaaS-based PEO and EOR services in Ireland enable employers to generate compliant contracts in minutes. Employers can also customize contracts with the help of our in-house experts to suit your employee’s demands and stay in line with compliance requirements.

Probation

Employers can propose a probationary period anywhere between three to twelve months. During probation, an employer can terminate employment with one week's notice, as long as it meets the probation criteria, including regular review meetings.

Note: Employees terminated during their probationary period are entitled to benefits under the Unfair Dismissals Act if their probation exceeds 12 months.

Minimum wages

The National Minimum Wage Act regulates minimum wages in Ireland. Currently, minimum wages are set at €10.50 per hour. 

In some situations, collective bargaining agreements may regulate minimum wages.

Working hours in Ireland

Employers need to be aware of laws on working hours if they do not partner with a PEO in Ireland.

Employees can be tasked for 40 hours a week and not more than 9 hours a day.   Employers can also stipulate an average of 48 working hours a week. 

Employers also need to be wary of stipulations set by EU directives. According to these regulations, employees are mandated to receive a minimum of 11 hours of rest in 24 hours.

Overtime laws in Ireland

Overtime laws are not a statutory requirement in Ireland. 

However, to win the talent race and retain quality talent, employers must include attractive benefits for working overtime. Overtime pay and other fringe benefits such as food vouchers for overtime work can go a long way in retaining the best talent.

Taxation in Ireland

Employees are taxed at a progressive rate in Ireland. Also, tax bands in Ireland are determined by two types - standard rates and higher income rates. 

Here are the tax slabs for employees in Ireland.

Marital status Income levels (Euros) Tax (%)
Single or widowed

Single or widowed

Married couple/One income

Married couple / One income

Married couple / two incomes

One parent family

One parent family

<36,800

>36,800

<45,800

>45,800

<73,600

<40,800

>40,800

20% of the income up to 35,300

20% of the income up to 35,300 and 40% on the remainder

20%

20% of the income up to 45,800 and 40% on the remainder

20% of the income up to 73,600 and 40% on the remainder

20%

20% of the income up to 40,800 and 40% on the remainder

Payroll in Ireland

The payroll cycle in Ireland is monthly. 

Employers are not obligated to pay any monthly or performance-based bonuses unless stipulated in the contract.

Social contributions

Employers need to contribute to a social insurance account called the PRSI or Pay Related Social Insurance. To manage these affairs, you would need a PEO in Ireland. 

Employers will need to contribute to the PRSI depending on the employee's salary. Both the employee and employer contribute to this fund. 

The PRSI funds pay for maternity benefits, illness, etc.

Health insurance

Employers do not make any contributions to public healthcare. However, it is advised to offer private health insurance for employees to retain the best talent in the country. 

Although Ireland has one of the best health infrastructures globally, people without insurance face long waiting times. Thus, employees can quickly gratify their healthcare needs with private health insurance. 

Private health insurance is taxable, and employers need to deduce tax incurred by the insurance from their monthly salaries. 

Availing of a PEO service in Ireland like Multiplier can help you to offer homogenous health insurance to all your employees.

Public holidays

Employees are entitled to 9 paid holidays. These are:

  • ~January 1: New Year’s Day
  • ~March 17: St. Patrick’s Day
  • ~Easter Monday
  • ~1st Monday in May
  • ~1st Monday in June
  • ~1st Monday in August
  • ~Last Monday in October
  • ~December 25: Christmas Day
  • ~December 26: St. Stephen’s Day

Annual leave

As stipulated by the  Organisation of Working Time Act of 1997, employees are entitled to 4 weeks of paid annual leaves in a year. Employees can negotiate for more annual leave in their terms of employment.

Sick leaves

Currently, Ireland’s employment regulations and labor laws do not stipulate statutory requirements for employers to pay employees when they are on sick leave. Thus, employees are entitled to sick leaves as stipulated in their employment contracts.

From 2022, Irish workers who have worked for their employer for at least six months will be eligible for a new sick pay scheme. Employers are required to pay sick leave at 70% of the employee's regular wage, up to EUR 110 per day.

Maternity leaves

The Maternity Act entitles female employees to 26 weeks of paid maternity leave and an additional 16 weeks of unpaid leave. Employees can avail of the unpaid leaves immediately after the end of maternity leave.

Here are a few regulations employees need to know about maternity leaves:

  • ~Female employees must take two weeks of leave before the due date and four weeks after delivery
  • ~Employees can avail the remainder of the leaves can as they prefer
  • ~Employees who qualify for maternity benefits must take at least two weeks to 16 weeks before the baby is due
  • ~The Department of Social Protection provides Maternity Benefits to employees who have paid enough PRSI contributions

Employers are not required by any law to offer any maternity benefits during the additional 16 weeks leave period from the employer unless specified by their employment contract.

Paternity leaves 

Male employees are entitled to two weeks of paternal leave within the first six months following birth or adoption. The state pays employees during their leave. However, there are no labor laws in Ireland that require employers to offer paid paternity leave. 

The employee must notify the employer at least four weeks before the start of the leave.

Termination of employment

The duration of notice periods is as follows:

Duration of service Notice period
13 weeks - 2 years

2 - 5 years

5 - 10 years

10 - 15 years

15+ years

One week

Two weeks

Four weeks

Six weeks

Eight weeks

Why Multiplier?

Multiplier’s global employment solution encompasses a PEO and EOR solution in Ireland. Using our SaaS-based solution, employers can employ compliantly and pay employees in Ireland and manage global workforces from a single window. 

By offloading HR and payroll responsibilities to Multiplier’s Employer of Record, employers can focus on their core tasks and hire the talent they need from anywhere in the world.

Moreover, employers can also use Multiplier to impart homogenous benefits to employees in Ireland. By offering benefits at a uniform scale for employees worldwide, employers can increase employee satisfaction and lower turnouts.

Multiplier’s PEO in Ireland also helps employers pay their teams in Ireland in Euros. Our SaaS-based solution offers one-click payroll for employers to pay their teams in 120+ countries in their local currencies.

Are you looking for an Ireland PEO? Speak to our experts.

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