Globalization has made it possible for employers from all corners of the world to hire employees from just about anywhere. And this is great for employers aiming to take full advantage of the international talent pool. In Ireland, you’ll find highly skilled talent in industries like tech, financial services, and pharma (to name a few). 

If you’re ready to tap into the Irish talent pool, learning about employee benefits in Ireland is essential. Becoming well-informed on this topic can help you formulate an enticing employee benefits package that won’t land you in financial trouble with Irish authorities. 

In this article, we’ll cover employee benefits in Ireland – from mandatory benefits to supplemental benefits and more. By the end of the article, you’ll have the information you need to prepare an excellent benefits package for your Irish workers.

Table of Contents show

Overview of Ireland Labor Law

You can find Irish labor laws in several places on the web – one of the first places to start is the Irish Workplace Relations Commission Guide to Employment, Labour, and Equality Law. In this official document, you’ll find information on the following topics: 

  • Working hours
  • Minimum wages
  • Leave allotments
  • Social Security
  • And more

Here are a couple of other resources that could be helpful to you: 

Mandatory Work Benefits in Ireland

Irish law outlines several mandatory employee benefits that international employers should be aware of. We’ll cover them in the headings below:

Sick Pay

Ireland aims to ensure that workers have a safety net when suffering a short-term illness. To that end, employers must allow employees up to 3 days per year for sickness. And these days must be paid at 70% of the employee’s typical wage (up to 110 euros per day). Of course, there are specific requirements that the employees must meet before they are eligible to receive pay for these sick days. 

Annual Leave

Irish employees get 4 weeks of paid leave each year – the amount is different for part-time employees. It’s important to track these leave days very closely to ensure compliance. 

Public Holidays

When it comes to public holidays, there’s a bit of flexibility for the employer. There are 9 public holidays in Ireland, and they include: 

  • 1st January (New Year’s Day) 
  • St. Patrick’s Day
  • Easter Monday
  • The first Monday in May
  • The first Monday in June
  • The first Monday in August
  • The last Monday in October
  • Christmas Day
  • St. Stephen’s Day

The flexibility comes into play when determining how benefits are administered. You can offer either of the following benefits to the employee for these holidays: 

  • A paid day off on the actual day. 
  • A paid day off within 30 days of the holiday. 
  • An extra day of annual leave.
  • An extra day of pay. 

REMOTE PEOPLE FURTHER READING

To learn more about additional information and other stipulations, read this resource.

Parental Leave

Female employees are eligible to receive 26 weeks of paid maternity leave, and male employees get 2 weeks. There are specific rules regarding this benefit, and we’ve outlined them in the table below.

Leave TypeLeave DurationNotesWho Pays?
Maternity Leave26 weeks– Sundays excluded.
– 2 to 16 weeks of leave must be taken before the baby’s due date.		Employer (based on Ireland’s statutory requirements).
Paternity Leave2 weeksMust be taken within 26 weeks of birth.Department of Employment and Social Protection.

Social Insurance (PRSI) Contributions 

Irish employees that are between 16 years old and 66 years old (pension age) have a Pay Related Social Insurance (PRSI) fund that is used for welfare benefits and pensions. Employers have two different responsibilities when it comes to the PRSI fund.

First, they have to deduct a certain amount from the worker’s paychecks and contribute it to the fund. On top of that, employers have to make additional payments toward PRSI – the employer contribution amount is determined based on classes. 

REMOTE PEOPLE NOTE

You can find more information in this document from the Irish Department of Social Protection. Certain changes were made for 2024, and they’re outlined in this official document. 

Minimum Wage

Just like other countries, Ireland has a minimum wage for their workers. As of the time of this writing, the minimum wage is 13.50 euros per hour. You cannot pay an employee less than this amount per the National Minimum Wage Act, 2000. 

Working Hours

People in Ireland are allowed to work up to 40 hours. Though it’s not an official requirement, these hours are typically worked over five days – Monday through Friday. You’re required to include the specific number of work hours in the employment contract you draft during the hiring process. 

REMOTE PEOPLE FURTHER READING

For more information about working hours, read this Citizens Information page. 

Termination Pay

In Ireland, termination pay is also called redundancy pay. For every year an employee works, they are entitled to two weeks’ pay. So, if someone works for your company for 10 years, you’ll pay 20 weeks of termination pay. In addition to that, you should know that there’s a cap of 600 euros per week. These payments are typically tax-free.

REMOTE PEOPLE FURTHER READING

For detailed information on termination pay and lump sum payments, click here to learn more.

Supplementary Work Benefits in Ireland

Statutory employee benefits are well documented online for employers, but when it comes to supplementary benefits, you have quite a bit of autonomy. The goal here should be to offer benefits that your Irish employees will find valuable on top of those mandatory benefits outlined above. Here are a few options to consider: 

  • Private health, dental, and vision plans to further expand your employee’s access to care that might not be covered by public health insurance.
  • Support for mental wellness, which is becoming more and more of a concern in the country of Ireland. 
  • Stock options to allow employees to take a personal stake in the company and share in the business’s success. 
  • Financial wellness tools and support to help your employees better manage their money. 
  • Flexibility in work locations for a more relaxed work atmosphere. 

This is not an exhaustive list of supplementary employee benefits you could offer. As long as the Irish government-required benefits are intact and there are no laws against the benefits you intend to offer your Irish employees, you shouldn’t have any issues.

How to Create an Employee Benefits Package for Irish Employees

With the information above, you’re ready to create an employee benefits package your Irish employees will love. But if you’re new to international hiring, you’ll soon find out that it’s far from easy. Here are some steps to get you started: 

  • Get to know your ideal candidates:What are they looking for in a benefits package. Their preferences should shape your benefit offering to some extent. 
  •  Look at Irish employee benefit plans: Take into account how Irish companies in your industry are attracting candidates and keeping them happy. You don’t necessarily need to offer exactly what they’re offering – but you can review other’s benefit plans to see what yours may be lacking. 
  • Take a very close look at Ireland’s employee benefit laws in full: If you’re not well-versed in international law (most employers are not), we recommend getting some legal advice as necessary. Breaking Ireland’s employment laws can very quickly get expensive. 
  • Gauge how much you can afford to pay in supplementary benefits for your employees:  Yes, it’s critical to offer a strong benefits package to candidates. But these packages have to fit your budget. 
  • Make sure that you clearly communicate the benefits package: Candidates and employees won’t see the true value of a benefits plan they don’t fully understand. Handbooks, digital platforms, and onboarding sessions can all foster a deeper understanding of the benefits you offer. 

Additional Resources to Consider

Being that you’re new to hiring workers in Ireland, it’s important to be aware of the resources available to you. Getting legal help from an attorney may seem obvious for those who aren’t sure about the laws in Ireland. Some may also have realized the value of HR and payroll professionals with international experience. But did you know about EORs and PEOs? These two resources can take a substantial amount of weight off of you, not only in benefit plan creation but also in benefits administration, payroll, and more. Learn about PEOs and EORs here.

So, there you have it – everything you need to know about employee benefits in Ireland. We hope you found all the information you were looking for. And we urge you to reach out to a professional in HR, law, payroll, or taxes should you need assistance drafting or implementing your employee benefit plan.