Employer of Record (EOR) Ireland
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An Employer of Record (EOR) acts as the legal employer for workers in Ireland, often referred to as a Global Professional Employer Organization (Global PEO). This service oversees key aspects of employment, ensuring strict adherence to local labor laws and regulations. Responsibilities include managing payroll, taxes, statutory benefits, and employment agreements.
Key Responsibilities of an EOR:
- Legal Compliance: Ensuring the worker’s employment complies with Irish labor laws.
- Payroll Management: Overseeing the local payroll process.
- Tax Filing: Handling employment-related taxes and necessary paperwork.
- Payslip Provision: Supplying workers with payslips.
- Salary Distribution: Managing salary payments to workers.
Streamline your global expansion with our Global PEO services – a hassle-free solution without the need for entity setup. Our Employer of Record (EOR) in Ireland ensures a legal presence, compliance, and intellectual property (IP) protection, allowing your business to focus on its core operations. Facilitate seamless global mobility and work visas while building a diverse and efficient global workforce. Partner with Mercans, your Employer of Record in Ireland, for a compliant and efficient employment experience for your global workforce.
Employment Contracts in Ireland
Employment Contracts
As an employer, when you hire an individual for a regular wage or salary, you establish a ‘contract of employment’ with them. This contract delineates both your rights and responsibilities as an employer and those of your employees.
Legally, you are not required to provide the entire contract in writing; however, you must issue a ‘written statement of terms of employment’ to your employees, outlining the key terms of their employment.
Your employment contract with employees may include:
- ‘Express’ Terms: These are clearly communicated to the employee either verbally or in writing.
- ‘Implied’ Terms: These are not explicitly stated but are understood as part of the employment relationship (e.g., the expectation for employees to perform their job to the best of their ability).
Employer Responsibilities for Providing Terms of Employment
As an employer in Ireland, you are required to provide a written statement of the core terms of employment within the first five days of an employee starting their job. This written statement should outline both the employer’s and employee’s rights and responsibilities, establishing a clear ‘contract of employment.’ While the entire contract does not need to be in writing, this written statement is essential.
Core Terms of Employment
You must provide the following core terms in writing within five days of the employee’s start date:
Remaining Terms of Employment
You must provide a written statement of the remaining terms of employment within one month of the employee’s start date. This should include:
If an employee is required to work outside Ireland for at least one month, you must also provide a written statement of the terms and conditions of their employment before they leave.
Working Hours
In Ireland, the standard maximum average working hours is 48 per week, calculated over a reference period. This excludes time spent on annual, sick, and other statutory leave. Some roles, like Gardaí and Defence forces, are exempt from this limit. Young workers have specific regulations, and reference periods for calculating average hours vary based on industry and agreements, ranging from 4 to 12 months. For guidance on managing working hours and compliance, Mercans is here to assist.
Probation Period
In Ireland, a probationary period is commonly included in employment contracts to evaluate a new employee’s performance. As of August 1, 2022, probation periods cannot exceed 6 months, though in exceptional cases, such as extended leave or specific job requirements, this may be extended by up to another 6 months, totaling 12 months. During probation, the Unfair Dismissals Acts 1997–2015 generally do not apply, provided the probation is within the specified period and clearly stated in the contract. However, protections exist for dismissals related to trade union activities, pregnancy, and statutory leave entitlements. Employees dismissed during probation for misconduct are entitled to fair procedures, while wrongful dismissal claims may arise if contractual terms are breached.
13th Month Salary
There is no legal requirement to provide a 13th or 14th month’s salary.
Termination, Severance Pay and Notice Period
- Notice Periods: Both employees and employers are required to provide a notice period before ending a contract of employment. The length of notice depends on the employee’s length of continuous service:
- 13 weeks to 2 years: 1 week
- 2 to 5 years: 2 weeks
- 5 to 10 years: 4 weeks
- 10 to 15 years: 6 weeks
- More than 15 years: 8 weeks
- Employees must also provide at least one week’s notice if they have been continuously employed for 13 weeks or more. If a contract specifies a longer notice period, the contract terms must be followed.
- Waivers and Payment in Lieu: Both parties may agree to waive the notice period or accept payment in lieu of notice. If the employee is not required to work during their notice period, the employer must compensate them accordingly.
- Dismissal for Misconduct: Employers can terminate employment without notice in cases of serious misconduct. However, even in such cases, the principles of natural justice should be observed, ensuring fair procedures are followed.
- Statutory Severance Pay: In Ireland, there is no statutory requirement for severance pay unless specified by a collective agreement or employment contract. However, employees dismissed due to redundancy may be entitled to statutory redundancy payments. This payment is calculated based on:
- Two weeks’ pay for each year of service.
- One week’s pay as an additional amount.
- The maximum weekly pay for redundancy purposes is capped, and employees must have been employed for a minimum period to qualify.
- Contractual Severance Pay: Some employment contracts or company policies may provide additional severance benefits beyond the statutory requirements. These provisions vary by employer and should be reviewed in the individual employment contract.
- Employees: Must provide at least one week’s notice if they have been continuously employed for 13 weeks or more. If the contract specifies a longer notice period, that must be followed.
- Employers: Must give notice based on the employee’s length of continuous service:
- 13 weeks to 2 years: 1 week
- 2 to 5 years: 2 weeks
- 5 to 10 years: 4 weeks
- 10 to 15 years: 6 weeks
- More than 15 years: 8 weeks
Employees vs Independent Contractors
In the modern workforce, it’s crucial to correctly classify workers as either independent contractors or employees. Misclassification can lead to legal issues and unintended liabilities. The distinction between these two types of work arrangements primarily hinges on the nature of the contract and the relationship between the individual and the organization.
Independent Contractors operate under a contract for services and are generally considered self-employed. They have control over their work, bear financial risks, and are responsible for their own business operations. Employees, on the other hand, work under a contract of service and are entitled to employment protections, benefits, and rights.
Here’s a comparative look at the key differences between an Independent Contractor and an Employee:
| Criteria | Independent Contractor | Employee |
|---|---|---|
| Contract Type | Contract for services | Contract of service |
| Control | Controls how, where, and when the work is performed | Employer controls the work process |
| Financial Risk | Bears financial risk; responsible for faulty work | No financial risk from work |
| Investment | Responsible for their own business investment | No personal investment in the business |
| Opportunity for Profit | Can profit from effective management and scheduling | No direct profit opportunity from management |
| Taxation | Responsible for own tax payments | Tax and PRSI deducted via PAYE |
| Social Welfare Benefits | Limited access to benefits | Entitled to a broader range of benefits |
| Employment Rights | Limited rights under employment laws | Entitled to rights like working time, leave, etc. |
| Liability | Less liability for employer | Employer liable for actions during employment |
| Public Liability | Liability for own work | Employer’s liability for work done |
Key Points for Employers
- Contractual Clarity: Ensure clear contractual terms defining the nature of the relationship. Independent contractors should have detailed contracts specifying their commercial role.
- Legal Compliance: Misclassification can lead to legal issues and financial consequences. Adhering to the correct classification helps avoid breaches of employment legislation.
- Financial and Legal Responsibilities: Understand the financial and legal responsibilities associated with each type of worker to ensure compliance and proper management.
Social Security in Ireland
Pay-Related Social Insurance (PRSI) is a mandatory contribution on employment income, including taxable non-cash benefits. If an individual’s weekly earnings are below EUR 352, they are exempt from PRSI for that week.
PRSI also applies to income from trades, professions, or investments. Self-employed individuals with income below EUR 5,000 for the year 2023 are exempt from PRSI. For those who are liable, the self-employed PRSI rate is 4%, consistent with the employee rate.
Upcoming Changes: Effective 1 October 2024, the PRSI rates will increase by 0.1% for both employers and employees, with the new rates as follows:
| Earnings Period | Employer Rate | Employee Rate |
|---|---|---|
| Up to 30 September 2024 | 11.05% (Class A1) | 4% (Class A1) |
| 0% (Class S1) | 4% (Class S1) | |
| From 1 October 2024 | 11.15% (Class A1) | 4.1% (Class A1) |
| 0% (Class S1) | 4.1% (Class S1) |
Additional Information
- Self-Employed PRSI: Individuals with annual income under EUR 5,000 are not subject to PRSI.
- Employee PRSI: Applies to share-based remuneration, including restricted stock units (RSUs), restricted stock awards, and performance share awards. It is collected through the PAYE system and also applies to Revenue Approved Profit Sharing (APSS) and Save As You Earn (SAYE) schemes.
Payroll in Ireland
Payroll Essentials for Ireland
Understanding payroll regulations in Ireland is vital for businesses operating locally. These rules cover everything from company registration, tax obligations, and social insurance contributions to employee benefits. Mercans ensures seamless compliance with Irish payroll laws, expertly handling all required processes. This guide outlines the key payroll obligations in Ireland, including legal requirements, pension responsibilities, employment standards, and essential payroll procedures.
Government Requirements
Registration Requirements
- Employer Registration: Employers who pay over EUR 8 weekly for full-time employees or EUR 2 for part-time workers must register for Pay-As-You-Earn (PAYE) with the Irish Revenue Commissioners. Registration must occur within nine days of starting payments.
- Director Registration: Companies must also register for PAYE for directors, irrespective of other employees. Directors must pay tax on their income, regardless of residency status or work location.
- Exemptions: Registration is not necessary for domestic employees earning less than EUR 40 per week or for employers with only one such employee.
- Forms for Registration: You are not required to register as an employer if you have a domestic employee and:
- You pay them less than EUR 40 per week
- You employ only one such individual
To register for PAYE or Pay Related Social Insurance (PRSI), the following paper-based forms are used:
- Form TR1 for individuals, sole traders, or partnerships
- Form TR1 (FT) for non-resident individuals, sole traders, or partnerships
- Form TR2 for companies
- Form TR2 (FT) for non-resident traders
- Form PREM Reg for employers already registered for income tax or corporation tax
Payroll registration must be completed before the first employee starts working.
Hiring an Employee
- New Employees/Someone Who Has Never Worked in the State Before : New employees should create a “myAccount” on the ROS website and register their job under “Jobs and Pensions.” A Tax Credit Certificate will then be issued to the employer for tax deductions.
- Returning EmployeesSomeone Who Has Worked in the State Before: Previous employers must notify Revenue when an employee leaves, allowing the new employer to register the employee similarly.
Ongoing Compliance Requirements
Employees are taxed via PAYE (Pay As You Earn), which is deducted directly from their pay by the employer. The amounts deducted are determined by Revenue based on certificates issued to employers, ensuring accurate tax collection. This system of taxation is one of the most common forms of income tax, as it is deducted from both the employer and the employee.
- Income Tax and PAYE: Employers must consistently deduct PAYE from employee pay, ensuring compliance with tax regulations and reporting requirements.
- PAYE Rates: Taxes are deducted at rates of 20% and 40%, depending on income levels.
- PRSI Contributions: Employees typically pay 4%, while employers contribute 11.05% under Class A.
- USC Deductions: The Universal Social Charge ranges from 0.5% to 8%, influenced by earnings.
- Revenue Payroll Notification (RPN): This document provides essential information for accurate tax deductions and must be updated regularly. Employers can retrieve RPNs through payroll software or directly via ROS.
- Payroll Submissions: Employers must report payroll details to the Revenue Commissioners before employee payments. Each submission includes gross pay, payment dates, and deductions. Monthly statements from Revenue summarize liabilities and must be accepted or amended by the employer by specified deadlines.
Pension Requirements
Registration and Types of Pension Schemes
- Types of Schemes: Common options include company pension schemes, personal retirement savings accounts (PRSAs), and personal pension plans. All require Revenue approval for tax benefits.
- Employer Obligations: Employers who provide a pension scheme must ensure contributions from both employer and employee are collected through payroll and submitted to the pension provider by the 21st of the following month.
- Additional Contributions: Employees can make extra voluntary contributions (AVCs), but any excess over age-related limits will not receive immediate tax relief.
Employment Obligations
Contracts and Employment Terms
- Contract Requirements: Employees must receive a written statement detailing core terms within five days of starting, including names, addresses, expected duration, pay rates, and working hours.
- Further Terms: A complete statement of terms must be provided within two months, covering job title, place of work, pay intervals, leave entitlements, and notice periods.
Rates of Pay
As of January 1, 2023, the national minimum wage is EUR 11.30 per hour, varying based on age.
Working Hours and Leave
Employers must ensure compliance with working hours regulations, providing adequate rest breaks and leave, including annual, maternity, and paternity leave. Minimum annual leave entitlement is four weeks.
Payroll Requirements
- Pay Slips: All employees are entitled to a pay slip detailing gross wages and deductions, provided in either electronic or hard copy.
Banking Requirements Related to Payroll
Payroll payments can be made through various methods, including checks, credit transfers, or cash, providing flexibility for employers.
Minimum Wages
The National Minimum Wage Act 2000 establishes the minimum amount employees must be paid. As of 1 January 2024, the national minimum wage is €12.70 per hour. While employers can offer more, they cannot legally pay less than this rate, except in specific circumstances.
- 20 and over: €12.70 per hour (100%)
- 19: €11.43 per hour (90%)
- 18: €10.16 per hour (80%)
- Under 18: €8.89 per hour (70%)
- Exemptions: The minimum wage does not apply to employees working for close relatives, statutory apprentices, or those under 20 years old, who are entitled to sub-minimum rates.
- Pay Calculation: Minimum wage calculations include all gross pay, such as basic pay, bonuses, and certain allowances. It excludes overtime premiums, special duty allowances, and payments during absences.
- Working Hours: Working hours for wage calculation include time spent working, available for work, and approved training, but exclude periods like standby time and travel to and from work.
Payroll Cycle
In Ireland, payroll regulations require employers to process payroll either on a weekly or monthly basis. Employees must be paid by the end of each month. There are no regulations governing the payment of a 13th-month salary.
Overtime Pay
Overtime refers to work performed beyond your regular working hours. Legally, there is no entitlement to extra pay for overtime, nor are there statutory requirements for overtime rates. Nevertheless, many employers offer higher pay rates for overtime hours. To understand your entitlements, review your employment contract to confirm if overtime is required and, if so, the applicable pay rates. Additionally, certain industries may offer increased overtime pay compared to regular hours.
Mercans’ payroll capabilities
Payroll Cycle
Optimize your payroll management with Mercans’ expert services tailored for Ireland. We handle timely and accurate payments to both employees and contractors, ensuring transactions are processed in the local currency. Trust Mercans to make your payroll cycle efficient and compliant with local standards.
Payroll Setup, Processing, and Administration
Mercans delivers a full suite of payroll services, from meticulous setup to precise processing and effective administration. Our end-to-end approach guarantees accurate payroll management and adherence to local regulations, allowing you to concentrate on your primary business activities.
Statutory Filings and Payments
Stay compliant with Irish regulations effortlessly with Mercans. Our dedicated team takes care of all statutory filings and payments, ensuring that your business meets all legal requirements. Rely on Mercans for accurate and timely submissions, ensuring your statutory obligations are consistently fulfilled.
Pay Employees and Contractors in Local Currency
Experience seamless payroll operations with Mercans, where payments to employees and contractors are made in the local currency. This ensures compliance with Irish financial regulations and simplifies the payroll process for your business.
Personal Income Tax in Ireland
In Ireland, personal income tax is applicable based on residency and domicile status. Individuals who are both resident and domiciled in Ireland are taxed on their worldwide income. For those who are resident but not domiciled in Ireland, they are taxed on Irish-source income, foreign employment income earned while performing duties in Ireland, and other foreign income only to the extent it is remitted to Ireland. Non-residents are generally taxed solely on Irish-source income.
Personal Income Tax Rates (2024)
- Single and Widowed Persons (no dependent children):
- 20% tax rate on income up to €42,000
- 40% tax rate on income exceeding €42,000
- Married Couple (one income):
- 20% tax rate on income up to €51,000
- 40% tax rate on income exceeding €51,000
- Married Couple (two incomes):
- 20% tax rate on income up to €84,000
- 40% tax rate on income exceeding €84,000
Ireland Employee Hiring Cost
Employing Individuals in Ireland: Employer Costs Breakdown
Employing individuals in Ireland involves several employer costs, including social insurance contributions and other mandatory benefits. Let’s break down the employer costs for an employee with a Gross Annual Salary of €240,000:
- Social Insurance Contributions: Employers in Ireland are required to contribute to the Pay-Related Social Insurance (PRSI) scheme. For an employee with a gross annual salary of €240,000, the total annual employer cost for PRSI contributions amounts to €26,520.
- Total Annual Cost: When factoring in additional expenses such as potential pension contributions, private health insurance, and other benefits, the total annual cost of employing an individual with a Gross Annual Salary of €240,000 is estimated to be €266,520.
For more detailed calculations and information about employer costs, you can refer to the latest guidelines on employment regulations and benefits in Ireland.
| Employing Individuals in Ireland: Employer Costs Breakdown | |
|---|---|
| Gross annual salary | EUR 240,000.00 |
| Annual employer costs | EUR 26,520.00 |
| 1) Social Security | EUR 26,520.00 |
| Total annual cost | EUR 266,520.00 |
Employee Benefits in Ireland
- PRSA Facility: Employers are required to provide access to a Personal Retirement Savings Account (PRSA) Facility for excluded employees—those not offered an occupational pension scheme within 6 months of starting employment. While employers are not obligated to contribute to the PRSA, they must facilitate the arrangement for employees who wish to contribute to their own retirement savings and ensure tax relief is provided at source through payroll.
- Statutory Sick Pay Scheme: As of January 1, 2024, employees are entitled to 5 days of statutory sick pay per year, up from 3 days in 2023. Sick pay must be paid at 70% of the employee’s normal wage, up to a maximum of €110 per day. This entitlement will increase to 7 days in 2025 and 10 days by 2026.
State-Funded Employee Benefits
- Death Benefits / Widow/Widower’s Pension: State pensions are available to the spouse of a deceased individual if contribution conditions are met.
- Illness Benefit: Provides financial support for employees unable to work due to illness, subject to PRSI contributions.
- Invalidity Pension: Available for individuals unable to work long-term due to incapacity, following 12 months of illness benefit.
- Public Health Services: Access to the public health system varies by income level, with options for private care available.
- The State Pension: Available to individuals aged 66 who meet the contribution requirements.
- Maternity Benefit: Paid to employed and self-employed women meeting PRSI conditions, typically for 26 weeks.
- Leave Periods: Various leave entitlements include maternity, parental, paternity, parent’s, adoptive, force majeure, and carer’s leave, alongside a new entitlement to 5 days of paid sick leave.
- Group Life Assurance / Death-in-Service Schemes: Many employers offer group life assurance, which provides financial protection to an employee’s dependents in the event of death. Premiums paid for approved plans are not taxed as income for employees. Typically, the benefit amount is around 4 times the employee’s base salary and can be set up under trust for quick payout outside of probate.
- Group Income Protection: Although less common due to higher costs, this benefit provides a replacement income for employees who are long-term ill or disabled. It can cover up to 75% of salary, including state disability benefits. Payments commence after a deferred period (usually 26 weeks, but adjustable) and can continue until retirement age if the employee remains unable to work. Premiums are tax-free for employees, but claim benefits are taxable as income.
- Group Medical & Dental Insurance: Private medical insurance is popular among employees when partially or fully funded by the employer, though premiums are subject to Benefit-In-Kind taxation. Options include a range of plans with various coverage levels, including access to general practitioners, specialists, and hospital services. Dental insurance is less common but is growing in popularity. Employers can also provide wellness programs through these plans.
- Occupational Pensions / Group PRSA / Master Trusts: For employers offering pensions, various structures are available depending on business needs and practices. Average employer contributions are around 6%, with employees contributing 5%. Additional voluntary contributions are possible up to revenue limits.
- Pension Auto-Enrolment: Draft legislation for a national auto-enrolment scheme is pending, which aims to automatically include employees not already in a retirement plan. Details on implementation are still emerging.
- Subsidized Food / Social Events: Employers may offer subsidized food options, such as onsite cafeterias or vending machines, and sponsor social events, enhancing employee engagement.
- Additional Paid Leave: Some employers offer extra paid leave or flexible working arrangements as additional perks.
- Tax-Saver Commuter Benefits: Employers can pre-purchase transit tickets for employees, who then repay the cost from pre-tax salary, offering savings on commuting expenses.
- Subsidized Gym Membership / Fitness Supports: Employers may partner with gyms or provide discounts on memberships, fitness classes, and organize sports activities to support employee wellness.
- The Cycle-to-Work Scheme: Employers can purchase bicycles and safety equipment, which employees repay from pre-tax salary, reducing the cost of cycling to work.
- PRSA Facility: Employers are required to provide access to a Personal Retirement Savings Account (PRSA) Facility for excluded employees—those not offered an occupational pension scheme within 6 months of starting employment. While employers are not obligated to contribute to the PRSA, they must facilitate the arrangement for employees who wish to contribute to their own retirement savings and ensure tax relief is provided at source through payroll.
- Statutory Sick Pay Scheme: As of January 1, 2024, employees are entitled to 5 days of statutory sick pay per year, up from 3 days in 2023. Sick pay must be paid at 70% of the employee’s normal wage, up to a maximum of €110 per day. This entitlement will increase to 7 days in 2025 and 10 days by 2026.
State-Funded Employee Benefits
- Death Benefits / Widow/Widower’s Pension: State pensions are available to the spouse of a deceased individual if contribution conditions are met.
- Illness Benefit: Provides financial support for employees unable to work due to illness, subject to PRSI contributions.
- Invalidity Pension: Available for individuals unable to work long-term due to incapacity, following 12 months of illness benefit.
- Public Health Services: Access to the public health system varies by income level, with options for private care available.
- The State Pension: Available to individuals aged 66 who meet the contribution requirements.
- Maternity Benefit: Paid to employed and self-employed women meeting PRSI conditions, typically for 26 weeks.
- Leave Periods: Various leave entitlements include maternity, parental, paternity, parent’s, adoptive, force majeure, and carer’s leave, alongside a new entitlement to 5 days of paid sick leave.
- Group Life Assurance / Death-in-Service Schemes: Many employers offer group life assurance, which provides financial protection to an employee’s dependents in the event of death. Premiums paid for approved plans are not taxed as income for employees. Typically, the benefit amount is around 4 times the employee’s base salary and can be set up under trust for quick payout outside of probate.
- Group Income Protection: Although less common due to higher costs, this benefit provides a replacement income for employees who are long-term ill or disabled. It can cover up to 75% of salary, including state disability benefits. Payments commence after a deferred period (usually 26 weeks, but adjustable) and can continue until retirement age if the employee remains unable to work. Premiums are tax-free for employees, but claim benefits are taxable as income.
- Group Medical & Dental Insurance: Private medical insurance is popular among employees when partially or fully funded by the employer, though premiums are subject to Benefit-In-Kind taxation. Options include a range of plans with various coverage levels, including access to general practitioners, specialists, and hospital services. Dental insurance is less common but is growing in popularity. Employers can also provide wellness programs through these plans.
- Occupational Pensions / Group PRSA / Master Trusts: For employers offering pensions, various structures are available depending on business needs and practices. Average employer contributions are around 6%, with employees contributing 5%. Additional voluntary contributions are possible up to revenue limits.
- Pension Auto-Enrolment: Draft legislation for a national auto-enrolment scheme is pending, which aims to automatically include employees not already in a retirement plan. Details on implementation are still emerging.
- Subsidized Food / Social Events: Employers may offer subsidized food options, such as onsite cafeterias or vending machines, and sponsor social events, enhancing employee engagement.
- Additional Paid Leave: Some employers offer extra paid leave or flexible working arrangements as additional perks.
- Tax-Saver Commuter Benefits: Employers can pre-purchase transit tickets for employees, who then repay the cost from pre-tax salary, offering savings on commuting expenses.
- Subsidized Gym Membership / Fitness Supports: Employers may partner with gyms or provide discounts on memberships, fitness classes, and organize sports activities to support employee wellness.
- The Cycle-to-Work Scheme: Employers can purchase bicycles and safety equipment, which employees repay from pre-tax salary, reducing the cost of cycling to work.
Work Permit in Ireland
Overview of Employment Permits
In October 2014, the Irish government established the Employment Permits (Amendment) Act 2014, which introduced nine categories of employment permits. These permits are designed to regulate the employment of non-EEA nationals in Ireland. The categories include the Critical Skills Employment Permit, Intra-Company Transfer (ICT) Permit, General Employment Permit, Contract for Services Employment Permit, Dependent/Partner/Spouse Employment Permit, Internship Employment Permit, Graduate Employment Permit, Sports and Cultural Employment Permit, and Reactivation Employment Permit. Each permit type has specific eligibility criteria and conditions. The Department of Enterprise, Trade and Employment (DETE) is responsible for issuing these permits.
Critical Skills Employment Permit
The Critical Skills Employment Permit is aimed at attracting highly skilled professionals to Ireland. To qualify, an individual must have an employment contract with an Irish employer and be paid directly from an Irish payroll. The minimum salary requirement is EUR 64,000, or EUR 38,000-63,999 for roles listed on the Critical Skills Occupations List, with the threshold set to rise to EUR 44,000 by January 2025. The applicant must hold at least a third-level qualification. The permit is initially valid for two years and requires a fee of EUR 1,000. Spouses or de facto partners of permit holders may apply for work permission directly from the Immigration Service Delivery (ISD) unit upon arrival in Ireland.
General Employment Permit
The General Employment Permit is intended for non-EEA nationals seeking employment in Ireland in roles not listed in the Ineligible Categories of Employment. The applicant must be employed under an Irish contract and paid directly from an Irish payroll. The minimum salary for this permit is EUR 34,000, with an increase to EUR 39,000 by January 2025. For specific roles, such as healthcare assistants and positions in the horticulture and meat processing sectors, different salary thresholds apply. Employers must advertise the position with the Department of Social Protection’s employment services to demonstrate that no EEA national is available for the role. The permit is initially available for six months or up to two years, with a fee of EUR 500 or EUR 1,000, respectively.
Intra-Company Transfer (ICT) Permit
The Intra-Company Transfer (ICT) Permit allows for the transfer of senior management, key personnel, or trainees from an overseas company to an Irish branch or subsidiary. The transferee must remain on the foreign payroll, and the minimum salary requirement is EUR 46,000, rising to EUR 53,000 by January 2025. The permit can be issued for an initial period of six months or two years, with possible extensions for an additional three years. The fee for the ICT Permit is EUR 500 for six months, EUR 1,000 for two years, and EUR 1,500 for a three-year extension. For trainees, a Training ICT Permit is available with a maximum duration of 12 months.
Permit Exemptions
Certain individuals are exempt from needing employment permits in Ireland. These include non-EEA nationals with specific permissions from the DJE, individuals granted international protection.
Atypical Working Scheme
The Atypical Working Scheme caters to short-term employment scenarios (15 to 90 days) where a standard permit is not applicable. This scheme is designed for situations where employment does not fit into existing permit categories. Applications must be submitted before travel to Ireland, with a fee of EUR 250. Typically, only one application per individual is allowed within a 12-month period, though exemptions may apply based on business needs.
EOR Solutions in Ireland
Best Employer of Record Ireland
Conclusion
Navigating employment in Ireland requires a thorough understanding of employer costs, labor laws, employee benefits, leave policies, and work permits. Adhering to these regulations is crucial to establishing a productive and legally compliant work environment. By prioritizing compliance and grasping the intricacies of Irish employment laws, employers can create a favorable and efficient workplace for their employees.