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Global Payroll Team
Written by Global Payroll Team
Last updated May 7, 2026
Expert Reviewed
Payroll in Ireland
Tax in Ireland
Immigration in Ireland

Ireland map

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Employer of Record/PEO and Payroll Services in Ireland

Combining a highly skilled workforce, strong technology infrastructure and a competitive corporate tax regime, Ireland remains a leading FDI destination for businesses expanding into Europe. Ireland has continued to invest in communications and technology infrastructure, property development and transportation networks to support business growth.

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Doing Business in Ireland

Ireland remains one of the most established business locations in the Eurozone, supported by a pro-business environment, strong links to EU markets, and significant multinational investment. Some of the key high-value activities in Ireland include advanced manufacturing, technology, financial services, life sciences, and research, development and innovation.

Entity Registration and Incorporation Requirements

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

Banking

Banks are commonly open from Monday to Friday, generally between 10 am and 4 pm.

Working Week

The standard working week is commonly 39 hours, usually worked from Monday to Friday.

Labor Law

The main employment legislation includes the Terms of Employment (Information) Acts 1994 to 2014, the National Minimum Wage Act 2000, the Payment of Wages Act 1991, the Minimum Notice and Terms of Employment Acts 1973 to 2005, the Organisation of Working Time Act 1997, and the Sick Leave Act 2022, as amended.

Main Industries

Technology, pharmaceuticals, medical devices, financial services, agribusiness, manufacturing and international business services

GDP Growth

2.6%

Population

5.46 million

Capital

Dublin

Major Languages

Irish and English

Currency

Euro (EUR)

Internet Domain

.ie

International Dialing Code

+353

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Ireland
Dublin, US
3:06 am, May 15, 2026
11°C
clear sky
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Wind Gust: 0 mph
Clouds: 0%
Sunrise: 5:58 am
Sunset: 8:10 pm

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Payroll

Every employee is entitled to receive a payslip with every payment of wages, which should show gross pay, PRSI (Pay Related Social Insurance) and other deductions. Employers must comply with payroll reporting and record-keeping requirements under PAYE Modernisation. Part-time workers have employment rights under the Protection of Employees (Part-Time Work) Act 2001, and employment-related complaints may be brought to the Workplace Relations Commission. Temporary COVID-19 wage subsidy measures are no longer in force.

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 5 days of statutory paid sick leave per year

Sick Leave

26 weeks of paid maternity leave and 2 weeks of statutory paternity leave

Maternity & Paternity Leave

1 week

Employee Termination

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

13th salary

€14.15 per hour for workers aged 20 and above

Minimum Wage

There is no general statutory entitlement to overtime pay, although working time limits still apply.

Overtime

2 weeks’ pay for every year of service, plus a bonus week, subject to the statutory cap

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 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 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

40%

Personal Income Tax

23%

Sales Tax

23%

VAT

Social Security

The social welfare system includes social insurance payments, means-tested payments and universal payments. Employers must also calculate and deduct PRSI and USC where applicable. Local Property Tax may also be collected through payroll where directed by Revenue.

Varies

Social Security Rate

≤ 11.15%

Social Security Rate for Employers

4.1%

Social Security Rate for Employees

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Employment Law

Employment laws in Ireland cover a range of issues including terms and conditions of employment, working hours, leave, whistleblowing, business transfers, redundancy and dismissals. Employees have a number of legal rights and protections, and employment disputes may be referred to the Workplace Relations Commission.

Employment agreement

Employees in particular sectors and workers who are represented by a trade union may have pay and conditions set out in an employment agreement or employment regulation order. Employers must also provide employees with written core terms and conditions within the statutory timeframe.

Working condition

Employers must ensure employee safety, health and welfare at work, including maintaining safe workplaces, preventing risks and providing training on health and safety. The Workplace Relations Commission also publishes a Code of Practice on grievance and disciplinary procedures, and employers are expected to have appropriate written procedures in place.

Leaves

Most employees are entitled to a minimum of 4 weeks’ paid annual leave per year. Leave is commonly calculated by reference to the leave year, although employers may apply a calendar-year approach in practice where statutory minimum entitlements are met.

Employment termination

Generally, if dismissed from their job, a worker is entitled to be paid for all work done, to receive a final payslip, payment for any outstanding annual leave entitlement, and the correct notice. Dismissal without notice can arise in cases of serious misconduct. Employees in Ireland are also protected by unfair dismissal rules, subject to qualifying conditions.

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1 week

Minimum notice period for terminating an employee

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10 days

Total number of public holidays

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39

Working hours per week

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Varies

Total number of days for Compassionate & Bereavement Leave

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Immigration

Generally, EEA, Swiss and UK nationals do not require an employment permit to work in Ireland. Most non-EEA nationals must obtain a valid employment permit or other appropriate work permission before coming to work in Ireland, and visa-required nationals may also need a long-stay employment visa.

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Residency Permit

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

Work Permit validity

Typically up to 2 years initially, depending on the permit type

Required Documents

The signed and dated online application form summary

A valid passport and, where required, a visa

An employment permit issued by the Department of Enterprise, Trade and Employment

A signed contract of employment

A letter from the employer in Ireland

Evidence of qualifications, where relevant

Evidence of finances and accommodation, where required

Supporting immigration registration documents for stays exceeding 90 days

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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    FAQs

    What is an Employer of Record (EOR) in Ireland and how does it support foreign companies?

    An Employer of Record in Ireland acts as the legal employer for a foreign company’s workforce in that country. It takes on responsibilities such as employment contracts, payroll processing, tax withholdings, social contributions, and compliance with Irish labour laws, while the foreign company manages the workers’ day-to-day activities.

    Why should businesses use an EOR instead of setting up a local entity in Ireland?

    Using an EOR allows a business to enter the Irish market quickly without the cost, time, and complexity of forming a local company. It lowers administrative burden, mitigates legal risks related to employment, and ensures full compliance from the start.

    How does payroll outsourcing in Ireland ensure compliance with tax and employment regulations?

    Payroll outsourcing in Ireland ensures all salary payments, tax and social insurance deductions, statutory benefits and filings follow Irish employment and tax law. This approach ensures correct processing of matters like PAYE and social insurance contributions and helps the business avoid non-compliance penalties.

    Can an Employer of Record in Ireland hire employees and manage work permits for international companies?

    Yes. An EOR in Ireland can recruit and employ staff on behalf of a foreign company and assist with any required work or employment permits for non-resident nationals. The EOR handles HR, payroll and compliance tasks to simplify local operations.

    What are the main benefits of using EOR and payroll services in Ireland for global expansion?

    Key benefits include faster market entry, access to Irish talent without forming a local legal entity, reduced administrative and legal risk, assurance of local employment-law compliance, and the ability to scale operations in Ireland while focusing on core business strategy.

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