Ireland Employment Guide

Minimum Wage Requirements in Ireland

Ireland maintains a statutory minimum wage of €12.70 per hour for all employees. This rate is subject to periodic review and adjustment by the government.

Understanding Irish Income Tax

The Irish income tax system operates on a progressive scale with two main rates: 20% and 40%. The applicable thresholds vary significantly based on the taxpayer's personal circumstances, making accurate classification essential for payroll processing.

Tax Rate Thresholds by Category

• Single, Widowed, or Civil Partner without Qualifying Children: 20% rate applies to income up to €42,000; income exceeding this threshold is taxed at 40%.
• Single Parent Eligible for Tax Credit: The 20% rate extends to income up to €46,000, with the balance taxed at 40%.
• Married Couple/Civil Partners (One Income): A combined threshold of €51,000 for the 20% rate.
• Married Couple/Civil Partners (Two Incomes): The 20% rate applies to the lower of €84,000 or (€51,000 plus the lower earner's income).

Monthly Pay-As-You-Earn (PAYE) deductions are calculated by averaging these annual thresholds.

Employer Payroll Costs and Social Insurance

Beyond gross salary, employers must factor in social insurance contributions, which typically amount to approximately 11.05% of the employee's earnings. This represents a significant component of the total employment cost.

For precise budgeting and compliance, companies like SailGlobal recommend obtaining a detailed cost analysis tailored to your specific workforce structure.

Working Hours and Overtime Regulations

The standard full-time workweek in Ireland is 40 hours, typically spread over five days (Monday to Friday). The maximum average working week, including overtime, must not exceed 48 hours over a four-month reference period.

Overtime Compensation Policy

Irish law does not mandate a specific premium rate for overtime work. Compensation for hours worked beyond the standard schedule is determined by the individual employment contract or a collective agreement. Common practices include providing financial compensation at an agreed-upon rate or offering time off in lieu.

For instance, a multinational technology company operating in Dublin might offer a 1.5x hourly rate for weekend work, while a local retail business may provide compensatory leave. Clear communication of these policies in the employment agreement is crucial to avoid disputes.