Hire in Ireland

Important Facts About the Country of Ireland

Introduction to Ireland

Ireland, alternatively referred to as the Republic of Ireland or Eire, stands as Europe’s westernmost country. The independent state shares a border with Northern Ireland, which is part of the United Kingdom, in the north, collectively forming the island of Ireland. The Greater Dublin area is home to nearly half of Ireland’s population of nearly 5 million people.

What to Know about Ireland’s Geography

Ireland is divided from Great Britain by the Irish Sea and the North Channel to the east, with the narrowest point being just 37 kilometers. To the north and west lies the expansive Atlantic Ocean. Renowned for its rugged beauty, the west coast of Ireland is particularly striking.

Climate in Ireland

Ireland enjoys a temperate Oceanic climate characterized by relatively mild temperatures throughout the year, with extremes being rare. The warming influence of the Gulf Stream from the Atlantic Ocean moderates the climate. During winter, the west coast is susceptible to Atlantic storms, while the west generally receives more rainfall compared to the east.

The Culture of Ireland

Throughout history, Ireland’s culture has been predominantly Gaelic, but it has increasingly absorbed influences from Britain over time. The widespread emigration from Ireland has disseminated modern Irish culture, notably its music and literature, worldwide. For instance, the iconic Irish Pub is a common sight in many global cities. However, these establishments often differ significantly from the traditional welcoming public houses found in Ireland.

Religions Observed in Ireland

Christianity remains the overwhelmingly dominant religion in Ireland, with nearly 80% of the population identifying as Catholic. However, according to the latest census, around 10% of the population identify as having no religion. Similar to trends observed in other European countries, regular church attendance is on the decline.

Languages Spoken in Ireland

English holds the status of the most prevalent and widely spoken language in Ireland. Nevertheless, according to the Irish constitution, Irish is designated as the national language. However, in practice, the everyday use of Irish as a community language is primarily concentrated in the far western counties such as Donegal, Galway, and Mayo.

Irish Human Resources at a Glance

Employment Law Protections in Ireland

In Ireland, employment law is primarily regulated by Common Law and judicial precedents. Furthermore, statutory acts derived largely from EU directives play a significant role in defining employment conditions and safeguarding employees. Collective agreements also hold importance in the realm of Irish employment law.

Employment Contracts in Ireland

A contract of employment in Ireland adheres to the fundamental principles of contract law, encompassing elements such as offer, acceptance, consideration, and an intention to create legal relations. While oral contracts are legally binding, written employment agreements are customary and strongly encouraged.

Within an employment contract, certain terms are implied by law, regardless of whether they are explicitly stated in writing. These include an inherent obligation of trust and confidence between the employer and the employee, as well as a statutory minimum period of notice in the absence of a specified notice period. Additionally, contractual terms may be inferred from established customs and practices in Ireland.

Employers are required to furnish employees with essential terms and conditions of employment within five days of their commencement. These mandatory particulars include:

• In situations where there is no designated primary workplace, the contract should specify whether the employee will be working from multiple locations or has the autonomy to choose their own work site(s).
• The contract should outline the job title, grade, nature, or category of work, along with a brief description of the tasks involved.
• It should indicate the start date of the employment contract.
• Any terms or conditions concerning working hours, including provisions for overtime, should be clearly stated.
• Details regarding the duration and terms of any probationary period applicable to the employee should also be included.

An employer is also obligated to provide a more detailed written statement outlining the terms of employment within one month of the employee’s start date. Failure to adhere to this requirement may result in employees being entitled to compensation of up to four weeks’ pay. This written statement must encompass the following:

1. Details of any training opportunities offered by the employer.
2. Identification of the client undertaking, particularly relevant for employees engaged in temporary agency work under temporary contracts.
3. In cases where an employee’s work schedule is largely unpredictable, the statement must include:

• – Confirmation that the work schedule is subject to variation.
• – The number of guaranteed paid hours.
• – Compensation for additional work beyond the guaranteed hours.
• – Specification of “reference hours and days” indicating the time slots and specified days when work may be assigned by the employer.
• – Minimum notice requirements before the start of a work assignment, including adherence to the 24-hour notice deadline stipulated by the Organisation of Working Time Act 1997. This act mandates that employers inform employees of their expected work schedule for each day of the week with at least 24 hours’ notice.
  4. Identification of the social security institutions receiving the social insurance contributions associated with the employment contract.
  5. Any social security protections provided by the employer.

Typically, to streamline procedures and ensure clarity, both the mandated terms and conditions and the detailed written statement are incorporated into the employment contract itself.

Tax and Social Security Information for Employers in Ireland

Personal Income Tax in Ireland

In Ireland, the tax year spans from January 1 to December 31. Income tax derived from employment is subtracted from employees’ salaries by their employers on behalf of the Irish government, under the system known as Pay As You Earn (PAYE). Employers are responsible for withholding tax from employees’ paychecks each pay period and reporting these deductions to the Office of the Revenue Commissioners.

The tax imposed is proportionate to an individual’s income, with the amount contributed by the employee contingent upon both their earnings level and personal circumstances.

Income tax follows a progressive structure, ranging from 20% to 40%. The initial segment of an employee’s income, up to a specified threshold, is subject to a 20% tax rate, termed the standard rate of tax, applied within the standard rate tax band. Subsequent income is taxed at the higher 40% rate.

The Universal Social Charge (USC) functions akin to another form of income tax and is typically recognized as an allowable tax under Ireland’s Double Taxation Agreements. USC constitutes a levy payable on gross income, encompassing notional pay, prior to any allowances for capital, losses, or pension contributions.

New Starts in Ireland

Newly hired personnel must obtain a Personal Public Service (PPS) number to receive their Revenue Payroll Notification (RPN). Should a PPS number be necessary, it can be obtained from the local PPS Registration Center upon submission of the required documentation, details of which can be found on the Department of Social Protection website (www.welfare.ie).

During the interim period before obtaining a tax credit, new employees will be subjected to emergency tax. In the absence of a PPS number, these individuals will face a 40% tax rate on all earnings.

Social Security in Ireland

Most employers and employees, provided they are over 16 years old, are required to make social insurance contributions toward Ireland’s National Social Insurance Fund. These contributions are generally obligatory.

For individuals employed in Ireland, social insurance contributions are categorized into different classes or rates, determined by the nature of their work.

The payroll process must also include social security contributions from both employers and employees, collectively known as Pay Related Social Insurance (PRSI) in Ireland. PRSI payments cover various social welfare benefits and are based on income level. Another consideration in the payroll process is the Universal Social Charge (USC), introduced in 2011, which is levied at a progressive rate of 2% to 8% on employee income.

The majority of Ireland’s workforce falls under Class A PRSI, entitling them to a full range of social insurance benefits from the Department of Social and Family Affairs, provided they meet the eligibility criteria.

Employee PRSI – Class A:

Employees earning €352 or less per week (before tax deductions) do not pay social insurance. However, they are still covered by Class A social insurance, with employers contributing on their behalf.

Employees earning over €352 per week pay 4% PRSI on all earnings. For earnings between €352.01 and €424 per week, the maximum credit of €12 is reduced by one-sixth of the amount of their weekly earnings over €352.01.

Employer PRSI:

Employers contribute 8.8% Class A employer PRSI on weekly earnings up to €410, and 11.05% on earnings over €410.10 per week.

Monthly contributions for social security must be remitted to the authorities by the 14th day of the following month in which the contributions were generated.

Universal Social Charge:

The Universal Social Charge (USC) is imposed on gross income, including notional pay, before any deductions for capital allowances, losses, or pension contributions. It serves as an additional form of income tax and is typically considered a valid tax under Ireland’s Double Taxation Agreements.

All individuals are liable to pay the Universal Social Charge if their gross income exceeds the threshold of EUR 13,000. For individuals aged 70 or over, or those holding full medical cards, a reduced rate of 2% (applicable for 2019 and 2020) is imposed on income over EUR 13,000, provided their gross income is less than EUR 60,000 per annum.

PRSI contribution, Universal Social Charge

*The above table serves as a broad guideline. Actual rates charged by GoGlobal will differ.

• Employees earning EUR 352 or less per week are exempt from PRSI. When an employee is subject to full-rate PRSI in any given week, all earnings for that week are subject to PRSI. Unearned income exceeding EUR 3,174 per annum is also subject to PRSI. A sliding scale PRSI credit of up to EUR 12 per week is applicable when weekly income falls between EUR 352 and EUR 424.
• Individuals with income up to EUR 13,000 are exempt from the Universal Social Charge.
• The reduced rate of 2% applies to individuals over 70 years old or holding a full medical card, provided their income does not surpass EUR 60,000.
• A 3% surcharge is levied on individuals with non-PAYE income exceeding EUR 100,000 per annum, irrespective of age.

Benefits to the Employee in Ireland

Irish Statutory Benefits

In Ireland, the social welfare system is categorized into three primary types of payments:

1. Social Insurance Payments
2. Means-Tested Payments
3. Universal Payments

Social insurance payments are determined by an individual’s social insurance contributions and encompass benefits such as jobseeker’s benefit, illness benefit, maternity benefit, invalidity pension, carer’s benefit, and contributory state pension.

Means-tested payments cater to individuals who lack sufficient PRSI contributions to qualify for equivalent social insurance-based benefits. For instance, if someone applies for jobseeker’s benefit but doesn’t meet the social insurance contribution requirements, they may be eligible for jobseeker’s allowance, which is means-tested.

Universal payments are provided irrespective of a person’s income or social insurance history and hinge upon specific personal conditions being met. For instance, child benefit is a universal payment.

Public Health Care Service

Ireland operates a comprehensive, publicly funded healthcare system overseen by the Health Service Executive (HSE). The HSE considers any individual residing in Ireland for a minimum of one year as ‘ordinarily resident’ and eligible for healthcare services.

Possession of a medical card grants individuals receiving welfare payments, low-income earners, most retirees, and certain others access to entirely free healthcare. However, approximately 70% of the population who do not qualify for a medical card must pay fees for specific healthcare services.

For instance, individuals without a medical card are subject to fees for certain healthcare services. For example, there is a €100 charge for accessing accident and emergency (A&E) services without a referral letter.

Other Benefits

Employers are not legally obligated to offer a private pension plan, but they are required by law to provide a Personal Retirement Savings Account (PRSA) option for employees. While there is no mandate for employers to contribute to the PRSA, they must establish the facility for their employees. This allows employees to make contributions directly from their gross salary.

Rules Regarding Visas and Foreign Workers in Ireland

General Information

Individuals who hail from an EU member state, one of the countries within the European Economic Area (EEA), Switzerland, or the UK possess the right to work in Ireland without the requirement of an employment permit. Additionally, their dependents are eligible to join them in residing in Ireland. EEA, Swiss, or British nationals are afforded equal treatment as Irish citizens when seeking employment opportunities within Ireland, allowing them to apply for any job vacancy, including positions in the public sector. However, individuals from other countries typically necessitate an employment permit for employment in Ireland.

The nine categories of employment permits are outlined as follows:

1. General Employment Permits (formerly known as work permits) – These permits are applicable for occupations offering an annual salary of €30,000 or more. Exceptions may be considered for positions with lower annual remuneration, typically requiring a labor market needs test.

2. Critical Skills Employment Permits (formerly Green Card permits) – These permits are accessible for most professions with an annual salary exceeding €64,000. They are also attainable for occupations listed on the Critical Skills Occupations List with a minimum annual remuneration of €32,000, omitting the necessity of a labor market needs test.

3. Dependent/Partner/Spouse Employment Permits – This permit pertains to dependents (excluding spouses or de facto partners) of Critical Skills Employment Permit holders, or researchers under a Hosting Agreement.

4. Reactivation Employment Permits – This permit enables foreign nationals, who previously held a valid employment permit but were inadvertently excluded from the system or faced workplace mistreatment, to re-enter the workforce.

5. Contract for Services Employment Permits – Intended for foreign nationals providing services to an Irish entity under contract, these permits facilitate the transfer of non-EEA employees to work in Ireland while maintaining an employment contract outside the State. Typically, a labor market needs test is required.

6. Intra-Company Transfer Employment Permits – These permits facilitate the transfer of senior management, key personnel, and trainees from an overseas branch of a multinational company to its Irish branch. The individual must earn at least €40,000 annually (€30,000 annually for trainees) and have been employed by the company for a minimum of six months (one month for trainees).

7. Internship Employment Permits – Accessible to full-time non-EEA national students enrolled in a tertiary institution outside Ireland, who have secured a work experience opportunity within the country.

8. Sport and Cultural Employment Permits – These permits are issued for employment related to the advancement, operation, and enhancement of sporting and cultural activities in Ireland.

9. Exchange Agreement Employment Permits – Applicable to individuals employed in Ireland under specific agreements, such as the Fulbright Program for researchers and academics.

Public Holidays Recognized by Ireland in 2024