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Your Guide to Hiring Employees and

Contractors in Ireland

Capital city

Dublin

Currency

Euro

Language(s)

English

Ease of doing business

Very easy

Payroll frequency

Monthly

Employer taxes

8.80% to 11.05%

Payroll

Monthly Payroll

All employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Minimum Wage Requirements:

The minimum wage is EUR 1,768 per month.

Individual Income Tax:

Income tax is calculated based on a tax rate band. The individual income tax is 20% until a certain level of income and 40% for any amount above that income. 20% is known as the standard band rate whereas the 40% is known as the higher band rate. The amount of income at the different tax rate bands is dependent on marital status.

Income tax is calculated by:

Applying the standard rate of 20% to the income in your weekly rate band

Applying the higher rate of 40% to any income above your weekly rate band

Employer Cost:

The employer cost is generally estimated at 11.05% of the employee salary.

Social Security – 11.05%

Working Hours

Work Week

Monday to Friday.

Overtime Pay & Maximum Hours

There is no statutory overtime pay, and overtime compensation is based on the employment agreement. Employers can provide compensation financially or provide paid time off at a future date.

Employment Termination

Under common law, an employer can terminate an employment relationship for any reason, provided the employer complies with the terms of the contract of employment, including giving the required notice. The employee has to be informed in writing that the employer is serving notice on the employee of termination and either works out their notice period or gets paid in lieu of their notice period.

Notice period:

The statutory notice period for an employer depends on the duration of employment:

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

15 years or more: 8 weeks

Probation periods:

Probationary periods in Ireland may last up to six months, but these periods can be increased an additional six months if the company declares an extension to the probationary period in the employment agreement.

These details are subject to change by the respective government and regulatory authorities in each country.

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