How to Hire and Pay Employees in Ireland

When you think of Ireland, you may think Guinness, whiskey, and Liam Neeson. But the country also has a staggeringly low corporate tax rate at only 12.5% and is ranked fifth worldwide in higher education quality. Add to that a location that offers easy access to mainland Europe, it’s no surprise many companies are looking to expand there.

Whether you’re a startup scaling internationally or an established company expanding into Europe, hiring in Ireland requires compliance with local employment laws, payroll systems, and work authorization procedures.

The hiring process in Ireland

If you’re planning to employ staff in Ireland, the hiring process begins well before you make your first job offer. Here’s a breakdown of the steps you’ll need to take to hire legally and effectively.

Right-to-work requirements

Before you hire, you must confirm the candidate’s right to work in Ireland. Citizens of the European Economic Area (EEA), Switzerland, and the UK do not need a work permit. For all other foreign nationals, employers must obtain an employment permit through the Department of Enterprise, Trade and Employment.

There are nine types of employment permits in Ireland, but the General Employment Permit and Critical Skills Employment Permit are the most common. Make sure your candidate has a valid permit before starting work or you’ll risk penalties under the Employment Permits Acts.

To learn more about work permits, you can also explore our Ireland Work Visas and Permits Guide.

Registering as an employer in Ireland

Once you decide to hire, your company must register as an employer with Revenue, Ireland’s tax authority. You’ll need a Tax Reference Number and access to Revenue Online Service (ROS), which is the platform you’ll use to submit payroll information and taxes.

Employers must also submit a Pre-Employment Notification (PEN) through the Revenue system before the employee’s first payday. Missing this step can delay payroll processing and lead to fines. Ensure you’re aware of any other obligations under the National Employment Rights Authority.

Drafting compliant employment contracts

All employees in Ireland must receive a written statement of terms within five days of starting work. This includes details on pay, hours, job title, and notice periods. You can reference Ireland’s Terms of Employment (Information) Act to ensure your contracts comply with local requirements.

Setting up payroll

Payroll in Ireland runs on a pay-as-you-earn (PAYE) model, and employers must handle tax withholding, contributions, and reporting accurately from day one.

Essential payroll compliance rules

Here are the key components of Ireland’s payroll system:

• Pay As You Earn. Employers deduct income tax, social insurance, and universal charges from gross pay.
• Pay-Related Social Insurance. Funded by employer and employee contributions, PRSI supports benefits like pensions and unemployment insurance.
• Universal Social Charge. A progressive tax on all gross income above certain thresholds.

Employers submit payroll data to Revenue using real-time reporting (RTR) via the ROS system each pay period. You’re also required to issue digital payslips detailing all deductions.

Be sure to stay updated on the latest tax bands, which are published annually on the Revenue website.

Choosing payment methods and schedules

Employers must pay wages through traceable methods—typically direct bank transfer. Cash payments are discouraged unless specifically justified.

You can choose:

• Weekly, fortnightly, or monthly pay schedules
• Bank payments in euros (SEPA-compliant accounts required)
• Third-party payroll providers or internal systems

If you’re deciding between in-house and outsourced payroll, consider a side-by-side comparison:

For a deeper look at outsourcing payroll globally, explore our payroll outsourcing guide.

For foreign employers, partnering with a global payroll expert or Employer of Record (EOR) can ensure compliance and save time.

Pay and leave standards

Ireland’s employment laws set strong protections for workers. To stay compliant, employers need to be familiar with all related laws.

Minimum wage and statutory pay obligations

As of 2025, Ireland’s national minimum wage is €12.70 per hour. Employees over age 20 are entitled to this full rate, while younger workers have slightly reduced minimums.

Employers must also provide:

• Paid annual leave. 4 weeks minimum
• Paid public holidays. 10 annually
• Sick leave. 5 days per year at 70% pay (up to a cap), per the Sick Leave Act 2025
• Maternity/paternity/adoptive leave. Varies

While there’s no statutory rate for overtime, it’s commonly included in union or individual agreements. Transparency and consistency are expected.

Quick summary of key standards:

• Minimum Wage. €12.70/hour
• Annual Leave. 4 weeks
• Public Holidays. 10 days
• Sick Pay. 5 days/year, 70% pay

Common hiring and payroll pitfalls in Ireland

Hiring in a new country always comes with hidden risks. Even small errors can lead to fines or litigation.

Avoiding compliance errors

Here are some common pitfalls and how to avoid them:

• Late payroll registration. Set up your Revenue account and PEN submissions early to avoid fines.
• Inaccurate contracts. Use locally reviewed templates and update them with any legislative changes.
• Incorrect classification. Don’t misclassify employees as independent contractors; penalties apply.
• Missing tax changes. Subscribe to Revenue’s Employer Updates to keep current with rate changes.

For added clarity, consider using Ireland’s Workplace Relations Commission to resolve questions or stay informed about employment law changes.

Tips and resources for a successful application

Hiring in Ireland doesn’t have to mean going it alone. To streamline the process:

• Review current employment legislation via official sites like Workplace Relations.
• Get local legal review of contracts before signing.
• Double-check tax rates using the official tax bands.
• Consider using an employer of record

What does an Employer of Record do?

An Employer of Record is a third-party organization that legally hires workers on your behalf in countries where you don’t have a legal entity. They handle everything from contracts to payroll, benefits, and staying compliant with local employment laws. By partnering with an EOR like Pebl, companies avoid the administrative and legal burdens of setting up a local entity, all while still building a fully compliant and supported team.

Final thoughts: Your roadmap to hiring in Ireland

If you’re planning to hire in Ireland, treat it like any high-stakes business investment: do the prep work. That means registering with Revenue, verifying employment rights, building compliant contracts, and setting up payroll systems that follow Irish tax rules.

Here’s a simplified checklist to help you move forward:

1. Confirm employee’s right to work
2. Register as an employer with Revenue
3. Set up a ROS account
4. Draft a local employment contract
5. Choose your payroll system and pay schedule
6. Submit pre-employment data
7. Begin compliant payroll reporting and payments

Setting up can be a lot, but you don’t have to do it all on your own.

How Pebl can help

Whether you’re onboarding your first hire in Dublin or scaling a full team from across Europe, Pebl handles the local complexity so you don’t have to. Our Employer of Record service helps companies like yours hire in Ireland without getting tangled in the legal weeds.

Let us handle visa sponsorship, payroll, compliance, and all those unique local regulations while you focus on growing your team with confidence.

Want to see what hiring in Ireland looks like with expert support? Let’s talk.

This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.

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