Country Guides
Hiring Employees in Ireland with an EOR
A beginners' guide comparing the cost, complexity and process of hiring through an Employer of Record (EOR) vs. setting up an entity in Ireland.
How to Hire Employees In Ireland
Last updated: January 20, 2025
Using an EOR vs an Entity in Ireland
| Aspect | EOR Services | Setting up an Entity |
|---|---|---|
| Setup Time | 1-2 business days | 2-3 months |
| Initial Cost | €0 | €25,000-40,000 |
| Ongoing Costs | €499-699/month per employee | Legal, accounting, compliance fees |
| Legal Responsibility | Managed by EOR | Internal responsibility |
| Employment Compliance | Managed by EOR | Internal responsibility |
| Benefits Management | Managed by EOR | Internal responsibility |
| Tax Filing | Managed by EOR | Internal responsibility |
| Penalties for Non-compliance | Managed by EOR | Up to €250,000 per violation |
What are the best EOR Services in Ireland?
Not all EOR services have an entity established in Ireland, and some rely on third parties. These three operate Irish entities, as well as having 24/7 (human) support and a comprehensive offering.
These services handle all aspects of employment including payroll, benefits, and compliance, acting as the legal employer while you maintain day-to-day management of your team.
From $599/month
- Owns an entity in Ireland
- Payroll
- Benefits management
- Legal Compliance
- Tax management
- Employee onboarding
Recommended
From $499/month
- Owns an entity in Ireland
- Payroll
- Benefits management
- Legal Compliance
- Tax management
- Employee onboarding
From $599/month
- Owns an entity in Ireland
- Payroll
- Benefits management
- Legal Compliance
- Tax management
- Employee onboarding
Some links above may be affiliate links. We may receive a commission for purchases made through these links at no additional cost to you.
Recommended EOR Service
OysterHR
OysterHR
Taxes in Ireland
Corporate Taxes
- Corporate Tax Rate: 12.5% (Trading Income)
- VAT (Standard Rate): 23%
- Employer PRSI: 11.05%
- USC (Universal Social Charge): Variable rates
Individual Taxes
- Income Tax: 20% (Standard), 40% (Higher)
- Employee PRSI: 4%
- USC: 0.5% - 8% (Progressive)
- Capital Gains Tax: 33%
Mandatory Benefits
Annual Leave
- 20 days minimum
- 9 public holidays
Health Coverage
- Public healthcare system
- Employer liability insurance
Parental Leave
- 26 weeks paid maternity
- 2 weeks paid paternity
- 26 weeks unpaid parental
Employee Rights in Ireland
Basic Rights
- Written statement of employment terms
- Protection against unfair dismissal
- Equal treatment and non-discrimination
- Safe and healthy work environment
Additional Protections
- Right to join trade unions
- Protection for whistleblowers
- Data protection rights
- Right to request flexible working
Hours of Work
Standard Working Hours
- Weekly Hours: 48 hours maximum
- Daily Rest: 11 consecutive hours
- Breaks: 15 minutes per 4.5 hours
Overtime Regulations
- Premium Pay: Time and a quarter
- Sunday Premium: Additional pay required
- Bank Holidays: Double time or day off
End of Employment
Notice Periods
- 13 weeks - 2 years: 1 week
- 2-5 years: 2 weeks
- 5-10 years: 4 weeks
- 10-15 years: 6 weeks
- 15+ years: 8 weeks
Severance Pay
- Redundancy: 2 weeks per year + 1 week
- Maximum Cap: 52 weeks' pay
- Notice Pay: Based on length of service
- Unfair Dismissal: Up to 104 weeks' pay
Key Labor Laws in Ireland
Employment Rights
- Employment Equality Acts 1998-2015
- Payment of Wages Act 1991
- Terms of Employment Act 1994
- Minimum Notice Act 1973
Working Time
- Organisation of Working Time Act 1997
- National Minimum Wage Act 2000
- Protected Disclosures Act 2014
- Safety, Health and Welfare at Work Act 2005
Leave & Benefits
- Parental Leave Acts 1998-2019
- Maternity Protection Acts 1994-2004
- Paternity Leave Act 2016
- Sick Leave Act 2022
Frequently Asked Questions
Using an Employer of Record (EOR) service, you can typically hire an employee in Ireland within 1-2 business days. This includes setting up the employment contract, registering with relevant authorities, and initiating payroll processes. This is significantly faster than establishing your own entity, which can take 2-3 months.
In Ireland, employers must provide:
- 20 days minimum paid annual leave
- 9 public holidays
- Maternity leave (26 weeks paid)
- Paternity leave (2 weeks paid)
- Public healthcare system access
- Employer liability insurance
The main employment taxes in Ireland include:
- Employer PRSI: 11.05% of employee's salary
- Employee PRSI: 4% of salary
- Universal Social Charge (USC): Variable rates from 0.5% to 8%
- Income Tax: 20% standard rate and 40% higher rate
No, Ireland requires statutory notice periods based on length of service:
- 13 weeks - 2 years: 1 week notice
- 2-5 years: 2 weeks notice
- 5-10 years: 4 weeks notice
- 10-15 years: 6 weeks notice
- 15+ years: 8 weeks notice
The main differences are:
- Setup Time: EOR: 1-2 days vs Entity: 2-3 months
- Initial Cost: EOR: €0 vs Entity: €25,000-40,000
- Ongoing Costs: EOR: €499-699/month per employee vs Entity: Variable (legal, accounting, compliance fees)
- Compliance Risk: EOR handles all compliance vs You manage all compliance with potential penalties up to €250,000 per violation