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Mercans CountryIntel ® Ireland Payroll And HR Insights

Mercans offers complete payroll, PEO and HR services in Ireland

Combining talent, technology infrastructure and a 12.5% corporate tax rate, Ireland presents an excellent FDI (foreign direct investment) opportunity for businesses everywhere. Ireland has undertaken significant investments in communications and technology infrastructure, property development and transportation networks to drive industry growth.

Doing Business in Ireland

This is the fastest growing economy in the Eurozone, with an ‘A’ grade from all major credit rating agencies. A pro-business country, multinational companies invest directly into the Irish economy approximately €19.2 billion including an annual payroll spend of €11.7 billion. Some of the key high-value activities in Ireland include advanced manufacturing, global business services and research development and innovation.

Entity Registration and Incorporation Requirements

Setting up a new business or expanding an existing one in the UK is straightforward. Choose how your company operates from a range of entity types which suit your individual circumstance.

Banking

Banks are open from Monday to Friday 10 am to 4 pm.

Working Week

The standard working week is 39 hours per week usually worked from Monday to Friday

Labor Law

The primary pieces of legislation that govern employment are the Terms of Employment (Information) Acts 1994 - 2014 (which sets out the information that employers must give employees about their employment), the National Minimum Wage Act 2000 (which provides for the national minimum wage), the Payment of Wages Act 1991, the Minimum Notice and Terms of Employment Acts 1973 - 2005 and the Industrial Relations (Amendment) Act 2015.

Main Industries

Agriculture, mining, forestry, and fishing

GDP Growth

6.3%

Population

4.995 million

Capital

Dublin

Major Languages

Irish

Currency

Euro

Internet Domain

.ie

International Dialing Code

+353

Ireland
Dublin, US
8:49 pm, July 6, 2022
17°C
clear sky

Payroll

Every employee is entitled to get a payslip with every payment of wages, which must indicate the gross pay, PRSI (Pay Related Social Insurance) and other deductions. For companies that manage global payroll, it is important to note that part-time workers have certain employment rights under the Protection of Employees (Part-Time Work) Act 2001. Any complaints raised that cannot be resolved with the employer may be raised with the WRC (Workplace Relations Commission). The EWSS (Employment Wage Subsidy Scheme) which replaces the TWSS (Temporary Wage Subsidy Scheme), gives employers impacted by COVID-19 a subsidy per employee to help keep them in employment.

It is acceptable to provide employees with online payslips

Payslip

Payroll reports must be kept for six years

Reports

4 weeks

Annual Leave

Up to a maximum of seven days self-certified paid sick leave within a continuous two-year period

Sick Leave

26 weeks of paid maternity leave and two weeks of paid paternity leave

Maternity & Paternity Leave

1 week

Employee Termination

There are no legal provisions regarding salaries for the 13th month

13th salary

€10.20 per hour for workers aged 20 and above

Minimum Wage

There is no legal right to pay for working extra hours and there are no statutory levels of overtime pay.

Overtime

2 weeks' pay for every year of service

Severance Pay

Tax and Social Security

Employers are responsible for deducting the correct amount of tax, PRSI and Universal Social Charge from their employees’ wages and must remit these to Revenue (Irish Tax and Customs) using the PAYE (Pay as You Earn) system.

Tax

The PAYE system is a method of tax deduction under which an employer calculates and deducts any income tax each time a payment of wages or salary is made to an employee. Employers are obliged to report employee pay and statutory deductions to Revenue, on or before the date they pay their workers.

12.5%

Corporate Income Tax

48%

Personal Income Tax

23%

Sales Tax

23%

VAT

Social Security

The social welfare system is divided into three main types of payments: social insurance payments, means-tested payments and universal payments. Each payment type sets out rules for the scheme. There is also a range of employment schemes. Employers are also obliged to calculate and deduct any liability to PRSI (Pay Related Social Insurance), USC ( Universal Social Charge) and LPT (Local Property Tax).

15.0%

Social Security Rate

11.0%

Social Security Rate for Employers

4%

Social Security Rate for Employees

Employment Law

Employment laws in Ireland cover a range of issues from young people at work, the terms and conditions of employment, working hours and leave as well as whistleblowing, business takeovers, redundancy and dismissals. Employees have a number of legal employment rights and protections, and in the event of any issue, are able to contact their local Citizens Information Centre.

Employment agreement

Employees in particular sectors (such as construction or security) and workers who are represented by a trade union sometimes have their work conditions set out in an employment agreement or employment order. EROs (Employment Regulation Order) set out the minimum rate of pay and conditions of employment. A REA (Registered Employment Agreement) is a collective agreement between a trade union and an employer.

Working condition

Employers must ensure employee safety, health and welfare at work which includes maintaining safe workplaces, preventing risks and improper conduct and providing training on health and safety. The Workplace Relations Commission has a Code of Practice: Grievance and Disciplinary Procedures which states that employers should have written grievance and disciplinary procedures.

Leaves

Most employees are entitled to a minimum of four weeks paid annual leave per year. This is calculated based on what is called the leave year (which runs from 1 April to 31 March annually). However, some employers use the calendar year to calculate annual leave.

Employment termination

Generally, if dismissed from their job, a worker is entitled to be paid for all work done and to a final payslip, payment for any annual leave entitlement which has not been used and the correct notice. Dismissal without notice can be done for serious misconduct. Posted workers (sent by their employer to carry out service in another EU Member State on a temporary basis) are entitled to the full range of Irish employee protection.

1 week

Minimum notice period for terminating an employee

9 days

Total number of public holidays

39

Working hours per week

± 20 days

Total number of days for Compassionate & Bereavement Leave

Immigration

Generally, EEA nationals have the right to travel to Ireland and do not require a residence permit to remain (but there are limits to these rights). Non-EEA nationals may be granted permission to remain through various types of residence rights.

Residency Permit

If a worker is coming to Ireland from outside the EU and Switzerland and wishes to stay for over 90 days, they must apply for an immigration permission and register it once it is granted. An Irish Residence Permit shows that an individual is legally in the State.

Work Permit validity

One year

Required Documents

The signed and dated online application form summary

A valid passport and visa

A signed letter stating your reasons for traveling

Proof of sufficient financial means to support yourself for the duration of your stay

Proof that you will return to your home country after your visa ends, such as family ties, a work contract, home ownership, lease/rental contract etc

a booked return flight ticket

Proof of accommodation, such as a hotel reservation or a letter from your host (if you have one)

Details of any previous visas you received/were refused for Ireland or any other country

Proof of payment of the visa fee for Ireland

Compliant, reliable, error-free and touchless payroll in Ireland

Build the best team and hire top talent compliantly in Ireland. Get in touch with Ireland payroll outsourcing & PEO specialists for a free consultation!

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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