Hiring in Ireland in 2026 means budgeting for two new things.
MyFutureFund, the national auto-enrolment pension, started in January, with employers paying 1.5% of gross pay for eligible staff. And employer PRSI, Ireland's social insurance, went up on 1 October. Add Irish tax that is split between PAYE and the Universal Social Charge, and a statutory sick pay scheme of its own, and you have most of what makes an Irish payroll different.
We drew this guide from the Workplace Relations Commission (WRC), Revenue, the Department of Social Protection and the Department of Enterprise, Tourism and Employment. Their pages are listed at the end, with the date each one was checked.
What's the best way to hire in Ireland?
It comes down to an Irish company of your own, a contractor, or an employer of record (EOR).
An Irish company fits once you're building a team there. You take on PAYE payroll, PRSI, MyFutureFund and the statutory leave schemes.
A contractor is only a contractor if the relationship says so: Revenue applies a five-step framework that followed the Karshan judgment, and the label on the contract doesn't decide it. For independent work, Hire with Columbus can manage the contractor agreement and payments from $22.50 per contractor per month.
An EOR employs your hire in Ireland while you direct the work. Hire with Columbus does this from $179/month per employee, with onboarding in about 2 to 3 days.
What an EOR arrangement means in Irish law
Where an arrangement counts as temporary agency work, the agency and the client each have legal duties. The worker is generally entitled to the same basic pay and working conditions as a comparable direct employee, and the client has to provide that comparison. For unfair-dismissal claims, the client using the agency worker is treated as the employer.
An employment agency also needs a licence, renewed every year. So ask any provider which Irish entity will employ your hire, and whether it holds the licence its activities need.
What must an Irish contract include?
Give the employee the core written terms within five days of starting, and the full written statement within one month. It covers the employer and role, place of work, pay and pay frequency, expected hours, probation, leave, pension and notice.
Probation can generally last up to six months, and up to twelve only in limited cases. Renewing a fixed-term contract for the same work can't restart it.
Successive fixed-term contracts with the same employer generally can't run longer than four years in total. Beyond that, unless there's an objective reason for another renewal, the contract becomes permanent.
How does Irish payroll work?
The contract states whether pay is weekly, fortnightly, monthly or something else. There's no single required cycle, but the pay reference period for the minimum wage can't be longer than a month.
Minimum wage and average pay
From 1 January 2026, the national minimum wage is €14.15 an hour for employees aged 20 or over. Younger workers have lower rates: €12.74 at 19, €11.32 at 18 and €9.91 under 18. On a 40-hour week, the adult rate works out at about €2,452.20 a month.
The Central Statistics Office's preliminary figures for Q2 2026 show average weekly earnings of €1,046.88 and average hourly earnings of €31.96. Both are averages across every sector and working pattern.
There's no statutory 13th-month salary in Ireland. Any bonus comes from the contract.
Employer PRSI
Ordinary employment falls under PRSI Class A. The employer rate depends on weekly pay:
| Weekly reckonable pay | Employer rate to 30 September 2026 | Employer rate from 1 October 2026 |
|---|---|---|
| €38 to €552 | 9.00% | 9.15% |
| Over €552 | 11.25% | 11.40% |
Above €552 a week, the higher rate applies to all pay, not just the part above the threshold. These rates already include the National Training Fund levy.
MyFutureFund auto-enrolment
MyFutureFund began in January 2026. It generally covers employees aged 23 to 59 who earn at least €20,000 a year across their jobs and aren't already in a qualifying workplace pension.
For 2026 to 2028, the employee and employer each pay 1.5% of gross pay, and the State adds 0.5%. The rates are set to rise in later years.
The Irish employer cost calculator applies PRSI and pension costs to a specific salary.
Employee deductions
Employees pay three deductions through payroll: income tax under PAYE, the Universal Social Charge (USC) and their own PRSI.
Income tax is 20% up to the standard-rate band and 40% above it. For a single person in 2026, the band is €44,000, before tax credits. The standard 2026 USC bands are:
| Income | USC rate |
|---|---|
| First €12,012 | 0.5% |
| Next €16,688 | 2% |
| Next €41,344 | 3% |
| Balance | 8% |
Employee PRSI is nil on weekly pay up to €352. Above that it's generally 4.20% to 30 September 2026 and 4.35% from 1 October, with a tapered credit between €352.01 and €424 a week.
What are the limits on working time?
The general maximum is 48 hours a week, averaged over four months, or longer in some cases. Employees get 11 hours in a row off each day and 24 hours in a row off each week.
Breaks are at least 15 minutes after more than four and a half hours of work, and 30 minutes after more than six hours, including the first break.
There's no statutory overtime premium in Ireland, so overtime pay comes from the contract. Sunday work is different: unless pay already reflects it, the employee is owed compensation through an allowance, higher pay, paid time off or a mix.
Remote and flexible work
All employees can request remote work, and parents and carers can request flexible work for caring purposes. Requests are generally made at least eight weeks ahead, and the employer replies within four weeks. It's a right to ask and to a fair process, not to a yes.
What leave are Irish employees entitled to?
Annual leave
Most employees get four working weeks of paid annual leave a year, which is 20 days on a five-day week. Holiday pay is normally paid in advance, leave keeps building up during certified sick leave, and leave can only be paid out instead of taken when the job ends.
Public holidays
Ireland has 10 public holidays. Good Friday isn't one of them.
For each holiday, an eligible employee gets the statutory benefit, which can be a paid day off or extra pay, at the employer's choice within the rules. A holiday that falls at the weekend doesn't automatically give a right to the following Monday off.
Sick pay
After 13 weeks of service, employees get 5 days of statutory sick pay a year with a medical certificate. The employer pays 70% of normal daily pay, up to €110 a day. State Illness Benefit and any company sick scheme are separate.
Family leave
| Leave | Length | Pay |
|---|---|---|
| Maternity | 26 weeks, plus 16 more unpaid | State Maternity Benefit, standard €299 a week |
| Paternity | 2 weeks within 26 weeks of the birth | State Paternity Benefit, standard €299 a week |
| Parent's leave | 9 weeks per parent within the child's first 2 years | State Parent's Benefit, standard €299 a week |
| Parental leave | Up to 26 weeks per parent before the child turns 12 | Unpaid |
The State benefits depend on PRSI conditions, and employers don't have to top them up to full salary. If you plan to, put it in the contract.
Other leave
- Force majeure leave: paid time off for an urgent family illness or injury, up to 3 days in 12 months or 5 days in 36 months.
- Leave for medical care: up to 5 unpaid days in 12 months to care for a family or household member.
- Domestic violence leave: up to 5 paid days in 12 months, with no advance notice needed.
How do notice, dismissal and redundancy work?
A dismissal generally needs substantial grounds and a fair process. Most unfair-dismissal claims need 12 months' service, but some protected grounds apply from day one. Claims normally go to the WRC within six months.
Notice
| Length of service | Minimum employer notice |
|---|---|
| 13 weeks to 2 years | 1 week |
| 2 to 5 years | 2 weeks |
| 5 to 10 years | 4 weeks |
| 10 to 15 years | 6 weeks |
| 15 years or more | 8 weeks |
Employees owe at least one week's notice after 13 weeks. A longer contractual notice period applies if there is one.
Redundancy
Employees with at least 104 weeks' service whose job is genuinely redundant get statutory redundancy pay: two weeks' pay for each year of service, plus one bonus week. Weekly pay is capped at €600 for the calculation. Notice and unused holiday pay are separate.
Larger redundancy programmes trigger collective-redundancy rules, with at least 30 days of consultation with employee representatives and notification to the Minister.
Can an EOR sponsor an employment permit?
Yes, in principle. The Employment Permits Act 2024 changed the definition of employer so that an agency can employ a permit holder who works for its client. That doesn't guarantee a permit: the employer, role, salary and permit conditions still have to qualify.
- Critical Skills Employment Permit: from €40,904 a year for listed roles with relevant qualifications, or €68,911 under the higher-salary route, with a two-year job offer. Some recent graduates qualify from €36,848.
- General Employment Permit: usually from €36,605 a year since March 2026. Most cases need a Labour Market Needs Test and the 50:50 rule on the employer's workforce. Apply at least 12 weeks before the start date.
What has changed recently?
- 1 January 2026: minimum wage increase. €14.15 an hour for employees aged 20 and over.
- January 2026: MyFutureFund starts. Employers and employees each pay 1.5% of gross pay for eligible staff.
- March 2026: new permit thresholds. The General Employment Permit minimum is €36,605 a year.
- 1 October 2026: PRSI increase. Employer Class A rates rose to 9.15% and 11.40%, and the employee rate to 4.35%.
Hire with Columbus as your Irish employer
Hire with Columbus employs your hire in Ireland and runs the contract, PAYE payroll, PRSI, USC, MyFutureFund and statutory sick pay. You keep the hiring decision and the day-to-day management.
The cost is from $179/month per employee, contractors from $22.50/month, and onboarding is usually 2 to 3 days after acceptance. Try a salary in the Ireland cost calculator, read the pricing or get started.
Sources
Official sources used in this guide:
- Workplace Relations Commission, Guide to the Temporary Agency Work Act (checked 13 September 2026)
- Workplace Relations Commission, Employment agencies (checked 13 September 2026)
- Revenue, Code of Practice on Employment Status (checked 13 September 2026)
- Workplace Relations Commission, Terms of employment (checked 13 September 2026)
- Workplace Relations Commission, Transparent and predictable working conditions (checked 13 September 2026)
- Law Reform Commission, Protection of Employees (Fixed-Term Work) Act 2003, section 9 (checked 13 September 2026)
- Workplace Relations Commission, National minimum wage (as of 1 January 2026)
- Central Statistics Office, Earnings and Labour Costs Q1 2026 final, Q2 2026 preliminary (Q2 2026)
- Department of Social Protection, PRSI contribution rates and user guide, January 2026 (as of 1 January 2026)
- Law Reform Commission, Automatic Enrolment Retirement Savings System Act 2024 (as of 1 January 2026)
- Revenue, Tax rate bands (as of 1 January 2026)
- Revenue, USC standard rates and thresholds (as of 1 January 2026)
- Workplace Relations Commission, Hours and wages (checked 13 September 2026)
- Citizens Information, Working hours (checked 12 September 2026)
- Workplace Relations Commission, Sunday premium entitlement (checked 13 September 2026)
- Workplace Relations Commission, Code of Practice on the right to request flexible and remote working (checked 13 September 2026)
- Workplace Relations Commission, Annual leave (checked 13 September 2026)
- Workplace Relations Commission, Public holidays (checked 13 September 2026)
- Workplace Relations Commission, Sick leave (checked 13 September 2026)
- Workplace Relations Commission, Maternity leave (checked 13 September 2026)
- Workplace Relations Commission, Paternity leave (checked 13 September 2026)
- Workplace Relations Commission, Parent's leave (checked 13 September 2026)
- Citizens Information Board, Benefits and taxes wallchart 2026 (2026 rates)
- Workplace Relations Commission, Parental leave and force majeure leave (checked 13 September 2026)
- Workplace Relations Commission, Leave for medical care (checked 13 September 2026)
- Workplace Relations Commission, Domestic violence leave (checked 13 September 2026)
- Workplace Relations Commission, Dismissal (checked 13 September 2026)
- Workplace Relations Commission, Minimum notice (checked 13 September 2026)
- Department of Enterprise, Tourism and Employment, Redundancy payments (checked 13 September 2026)
- Workplace Relations Commission, Collective redundancies (checked 13 September 2026)
- Department of Enterprise, Tourism and Employment, Employment permits FAQs 2024 (checked 13 September 2026)
- Department of Enterprise, Tourism and Employment, Critical Skills Employment Permit (as of 1 March 2026)
- Department of Enterprise, Tourism and Employment, General Employment Permit (as of 1 March 2026)
Frequently asked questions
How much does an EOR cost in Ireland?
Hire with Columbus employs people in Ireland from $179 per employee per month, with no setup fee. That covers the Irish contract, PAYE payroll, PRSI, USC, MyFutureFund and statutory sick pay. The bigger cost is what sits on top of salary, which you can estimate for a specific salary with the Ireland cost calculator.
Can I hire employees in Ireland without setting up a local entity?
Yes. An employer of record employs the person in Ireland on your behalf, so you don't need an Irish company. Where the arrangement counts as agency work, the worker is generally entitled to the same basic pay and conditions as a comparable direct employee, and you are treated as the employer for unfair-dismissal claims. Ask which Irish entity will employ your hire and whether it holds the agency licence it needs.
How long does it take to hire someone in Ireland?
Onboarding through Hire with Columbus typically takes 2 to 3 days once your candidate has accepted. The core written terms are then due within five days of the start. If your hire needs a General Employment Permit, apply at least 12 weeks before the start date.
What does an employer pay on top of gross salary in Ireland?
From 1 October 2026, employer PRSI is 11.40% of all pay for employees earning over €552 a week, and 9.15% below that. Since January 2026, employers also pay 1.5% of gross pay into MyFutureFund for eligible employees. Statutory sick pay of 70% of daily pay, up to €110 a day for 5 days a year, comes on top.
What is the notice period for terminating an employee in Ireland?
Minimum employer notice is 1 week after 13 weeks of service, 2 weeks from 2 years, 4 weeks from 5 years, 6 weeks from 10 years and 8 weeks from 15 years. A longer contractual period applies if there is one. A dismissal also needs substantial grounds and a fair process.
Is a 13th-month salary mandatory in Ireland?
No. There's no statutory 13th-month salary in Ireland, so any bonus comes from the employment contract. Say in the offer whether a bonus is guaranteed and how it's worked out.
How much paid leave are employees entitled to in Ireland?
Most employees get four working weeks of paid annual leave a year, which is 20 days on a five-day week. Ireland also has 10 public holidays, and Good Friday isn't one of them. Statutory sick pay covers 5 days a year after 13 weeks of service.
What is the difference between hiring an employee and a contractor in Ireland?
Revenue looks at the real working relationship, using a five-step framework that followed the Karshan judgment, so the contract's label doesn't decide it. For genuinely independent work, Hire with Columbus can run contractor agreements and payments from $22.50 per contractor per month.
What changed in Ireland
Checked against official sources on .
No rule changes recorded since we began logging them.