HR Software for Ireland
Leave Policy
Maternity Leave
Pregnant employees who meet the requirements for maternity leave are entitled to 26 weeks of paid leave.
The employee receives a percentage of her salary depending on the employment history and the amount of social security paid, with a maximum amount (maternity benefit at the full rate) of €245 per week. The PRSI is responsible for payment.
The employee can extend the vacation by 16 additional days. This vacation is unpaid.
To benefit, an employee must meet one of the following conditions
- She must have paid PRSI for at least 39 weeks in the 12 months preceding the first day of maternity leave
- At least 39 weeks of PRSI paid since the first day of work and at least 39 weeks of PRSI paid or credited in the relevant tax year or the year following the relevant tax year
- A minimum of 26 weeks of PRSI paid in the relevant tax year and a minimum of 26 weeks of PRSI paid in the tax year preceding the relevant tax year
Paternity Leave
Employees are entitled to 2 weeks of paid paternity leave. The employee receives a percentage of their salary based on their employment history and the amount of social security contributions paid.
The maximum amount (full paternity benefit) is €245 per week. The Ministry of Social Protection is responsible for this payment.
Parental Leave
Parental leave is not regulated by law in Ireland. However, employees may be entitled to maternity and paternity leave.
Sick Leave
Employees in Ireland are entitled to 3 days of paid sick leave at 70% of their regular salary up to a maximum of €110/day. From 2024, employees in Ireland will be entitled to 4 days of company-paid sick leave. If the employee is sick for more than three days and has sufficient PRSI contributions, he or she can apply to the Department of Social Protection (DSP) for a payment called sick pay.The entitlement to sick pay will increase in the coming years:
– 2023: 3 days
– 2024: 5 days
– 2025: 7 days
– 2026: 10 days
Sick leave is not calculated pro rata. Part-time employees are entitled to the same allowance
Pay & Tax
Minimum Wage Requirements
The minimum wage is EUR 11.30 per hour.
Individual Income Tax
Income tax is calculated based on a tax rate range. The individual income tax is 20% up to a certain income level and 40% for all amounts above that. The 20% is called the standard tax rate, while the 40% is called the higher tax rate. The amount of income in the different tax brackets depends on marital status.
Income tax is calculated as follows:
- Applying the standard rate of 20% to income in your weekly tax bracket
- Applying the higher tax rate of 40% to any income above your weekly tax rate limit
Payroll Cost
The cost to the employer is generally estimated at 11.05% of the employee’s wages.
- Social Security – 11.05%
Overtime Pay & Maximum Hours
The standard working hours are 8 hours per day and 40 hours per week. The standard working week lasts from Monday to Friday. The maximum working time is 48 hours per week.
Pay for overtime is not mandatory. Hours that fall outside of regular working hours are considered overtime.
The average weekly working time (including overtime) may not exceed 48 hours in a four-month period.
There is no statutory overtime pay and overtime pay is based on the employment contract. The employer can compensate the overtime financially or grant paid time off at a later date.
Termination
Termination Requirements
Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.
Termination of employment in Ireland can be complex and must be based on performance or grounds for dismissal (serious cause, unfit for role, role extinction).
Compliant terminations include:
- Voluntary by the employee
- By mutual agreement
- Unilaterally by the employer due to:
1. Probation period
2. Objective reasons
3. Dismissal for disciplinary reasons (gross misconduct, fraud, repeated rule violations)
4. Performance due to lack of suitability for the position
5. Physically or mentally unable to perform tasks
6. He loses his right to work in Ireland - When the contract expires
Notice Period
The minimum notice period is 1 week and increases depending on the length of the employment relationship.
- Between 13 weeks and 2 years of employment – 1 week’s notice period
- Between 2 and 5 years of employment – 2 weeks’ notice
- Between 5 and 10 years of employment – 4 weeks’ notice
- Between 10 and 15 years of employment – 6 weeks’ notice
- More than 15 years of service – 8 weeks notice period
Severance for Employees
In Ireland, employers can pay severance pay in lieu of notice.
The employer may terminate the employee without giving the employee the full notice period and instead pay the basic salary to which the employee would have been entitled during the notice period (or, if the notice has already been given, during the remainder of the notice period).
In justified cases of termination, a severance payment will be paid based on the employee’s salary and length of employment.
The severance payment is 2 weeks of basic salary for each year of employment (pro rata) plus 1 additional week’s salary up to a maximum of €600 per week.
In order to protect you from unforeseen financial risks arising from the termination of an employment relationship, IceHrm applies a severance pay provision in all employment contracts in this country. IceHrm has extensive expertise in managing litigation risk globally and the calculation of the severance provision is based on prevailing common law or statutory requirements and best local practices. If your employee resigns or is not entitled to severance pay, you will receive a refund of any unused amounts.
Statutory Time Off
Paid Time Off
Full-time employees are entitled to 20 days of paid vacation per year. Part-time employees are entitled to vacation worth 8% of the hours worked. PTO is credited monthly, with full-time employees granted 1.6 days per month. There is a minimum length of employment for employees to take vacation.
Public Holidays
There are 10 national holidays in Ireland. National holidays include:
- New Year’s Day: January 1
- St. Brigid’s Day: February 6
- Saint Patrick’s Day: March 17
- Easter Monday
- Early May Bank Holiday: First Monday in May
- June Bank Holiday: First Monday in June
- August Bank Holiday: First Monday in August
- October Bank Holiday: Last Monday in October
- Christmas Day: December 25
- Saint Stephen’s Day: December 26
Onboarding
Onboarding
Onboarding takes 1 working day after the customer signs the SOW.
Additional Info
Employment Contract Details
The contracts must be drawn up in English and can be translated into another language (if applicable, the employee’s native language). They must be in writing and signed by both parties.
A contract must contain:
- Surname
- Address of the employee
- Date of start and end of work
- Place of work
- Salary (wage rate)
- Working hours
- Entitlement to annual leave
- Type of payout
- Sick leave
- Notice period
- Overtime rates (if applicable)
- Bonus (if applicable)
- Other general contractual obligations (disciplinary proceedings, harassment, smoking/hazing, use of company devices/phones, etc.)