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Employer of Record/PEO and Payroll 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.

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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

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Ireland
Dublin, US
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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

PEO Ireland

Mercans PEO (Professional Employer Organization) services in Ireland provide a comprehensive HR outsourcing solution for foreign companies to establish a local presence, compliantly hire and manage employees, handle HR, payroll, benefits, tax compliance, and other administrative tasks, while reducing costs and administrative burden.

Through our Ireland PEO, we provide services that are flexible and cost-effective for companies seeking to outsource their HR and payroll processes. As a Professional Employer Organization, Mercans offers a range of services including employee benefits, payroll administration, and compliance with Ireland employment laws. By entrusting their HR and payroll needs to Mercans, companies can focus on their core business activities and ensure a smooth and efficient HR operation.

Partnering with our Ireland PEO presents the fastest and most efficient way to enter the Ireland market.

Contact us to explore how PEO Ireland solutions from Mercans can support your seamless expansion!

Benefits of Hiring an Employee through a PEO in Ireland

Expanding into the Irish market offers your business access to a highly skilled workforce, a stable economy, and strategic positioning in the European Union. However, managing local labor laws and employment regulations can be complex. Partnering with a PEO in Ireland streamlines the process, enabling you to hire employees without the need for a local entity. Here’s how a PEO Ireland can benefit your business:

Fast and Simple Market Entry

A PEO Ireland allows your business to hire employees and begin operations in Ireland almost immediately. By eliminating the need to set up a local legal entity, you can start hiring and running your business swiftly and efficiently, minimizing time-to-market.

Compliance with Local Labor Laws

Ireland has strict regulations regarding employment contracts, taxation, employee benefits, and more. A PEO in Ireland ensures that your business complies with all local laws, from ensuring proper tax withholding to adhering to employee protection standards, reducing the risk of legal complications.

Cost-Effective Expansion

Establishing a legal entity in Ireland can be costly, requiring substantial investment in legal, accounting, and infrastructure services. A PEO Ireland allows you to bypass these expenses by taking care of payroll, employee benefits, tax filings, and more, giving you a cost-effective solution to hiring employees without setting up a local branch or office.

Minimized Risk of Legal Issues

Non-compliance with Ireland’s labor laws can lead to hefty fines or legal disputes. A Ireland PEO ensures your business stays updated on changes to labor regulations, helping you avoid costly legal issues and ensuring that your employee management practices meet all local requirements.

Access to Ireland’s Skilled Workforce

Ireland is renowned for its educated and diverse workforce, particularly in sectors such as technology, finance, pharmaceuticals, and engineering. A PEO in Ireland provides access to this talent pool, allowing your business to hire skilled professionals who understand the local market and can contribute to your growth.

Streamlined HR and Payroll Management

Handling payroll, taxes, and benefits for employees in a foreign country can be challenging. A PEO Ireland simplifies these administrative tasks by managing everything from payroll processing to statutory benefits, ensuring that your employees are paid accurately and on time, while remaining compliant with Irish regulations.

Scalable Workforce Solutions

Whether you’re hiring a small team or expanding to a larger workforce, a PEO in Ireland offers the flexibility you need to scale your operations. As your business grows, a PEO can easily adjust to your changing employment needs without requiring you to set up additional legal entities or deal with complex administrative burdens.

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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

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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.

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1 week

Minimum notice period for terminating an employee

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9 days

Total number of public holidays

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39

Working hours per week

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± 20 days

Total number of days for Compassionate & Bereavement Leave

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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.

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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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