How to Hire Remote Employees In 

Ireland

The Basics

Currency
Euro (EUR)
Employer Taxes
11.05%
Payroll Frequency
Monthly
Official Language
Irish, English

Employment in 

Ireland

Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors
Reduced overhead: Lower cost in expenses, payroll, benefits, and more.
Greater flexibility: Contractors can be brought on as-needed. If not a good fit, you simply don’t have to move forward with the contract.
Reduced legal risk: Contractors aren’t usually protected by employment anti-discrimination and workplace safety laws.
Disadvantages of Hiring Independent Contractors
Risk of Misclassification: Not only does this deny workers their proper protections, it can also result in steep penalties and damage to your company. If the IRS determines that employee misclassification has occurred, you will be liable for a percentage of the employees wages, FICA contributions, penalty fines, unpaid taxes, up to a year in prison, and more.
Lack of Control: Contractors are drawn to being independent because it gives them greater control over the work they perform and who they work with. Because they’re not employees, you can’t tell them what to work on and how it should be done.
Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.
Increased Scrutiny: Using Independent Contractors typically leads to an increased risk of being audited.

Set up a subsidiary in 

Ireland

A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Ireland can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Ireland, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Ireland.

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Paying Remote Employees

Paying employees in Ireland is not the same as paying workers in your own country. Employees have to be paid using Ireland’s employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.

Ireland

 Specific Information

Working Hours

A full-time workweek is 39 hours. A workweek cannot exceed 48 hours on average over a 4-month period.

Overtime

Ireland does not have statutory overtime pay, however, is sometimes outlined in a collective bargaining agreement or is negotiated in the employment contract.  

Payroll Tax

Employer

Employer

  • Social Security (PRSI)

Minimum Wage

Ireland hourly minimum wage is based on age: Age 18 – 8.16 EUR per hour Age 19 – 9.18 EUR per hour Age 20 and over – 10.20 EUR per hour

Payroll

Pay Cycle

Salaries are paid either on a weekly or monthly basis. Employees should be paid by the last day of the month.

13th Salary

There are no provisions in the law regarding 13th salaries.

Leave

Paid Time Off (PTO)

PTO is calculated by the:

  • Full-time employees receive four weeks of paid annual vacation, although more leave is possible if it’s within the employee’s contract.
  • However, the employer can decide when annual leave is taken. Paid leave will only carry over if it is agreed upon between the employer and employee.

Public Holidays

There are 9 public holidays.

Sick Days

No statutory law is in place that requires employees to receive paid sick leave, but employers should decide on their own sick leave policy and enact it in the employees’ contract or terms of employment.

Employers must submit a written statement to an employee within two months of employment that provides information on the terms and conditions related to incapacity to work due to sickness or injury.

If an employee is ill during annual leave, they may obtain a medical certificate so the sick days will not count towards annual leave days.

Maternity Leave

Mothers are entitled to 26 (156 days) weeks of maternity leave and can receive an extra 16 weeks of unpaid leave, which begins immediately after the end of maternity leave. Mothers must take at least 2 weeks before the expected birth and at least 4 weeks after. Entitlement for paid leave depends on if the worker has contributed enough so social insurance, as employers are not obligated to pay.  

To receive benefits employees must contribute: 

  • At least 39 weeks of PRSI paid in the 12-month period before the first day of your maternity leave 

or

  • At least 39 weeks of PRSI paid since first starting work and at least 39 weeks of PRSI paid or credited in the relevant tax year or in the tax year immediately following the relevant tax year. 

or 

  • At least 26 weeks of PRSI paid in the relevant tax year and at least 26 weeks PRSI paid in the tax year immediately before the relevant tax year. 

The weekly standard rate is 245.00 EUR.

Paternity Leave

2 weeks of paid leave is given during any time within 26 weeks of the birth or adoption.  

Those eligible for paternity leave are: 

  • The father of the child 
  • The spouse, civil partner or cohabitant of the mother of the child 
  • The parent of a donor-conceived child 

To receive benefits an employee must have contributed to social insurance: 

  • At least 26 weeks PRSI paid in the relevant tax year and at least 26 weeks PRSI paid in the tax year immediately before the relevant tax year. 

or 

  • At least 39 weeks PRSI paid since first starting work and at least 39 weeks PRSI paid or credited in the relevant tax year or in the tax year immediately following the relevant tax year. 

or 

  • At least 26 weeks PRSI paid in the relevant tax year and at least 26 weeks PRSI paid in the tax year immediately before the relevant tax year.

Parental Leave

Parents of children age 12 years or younger are entitled to 26 weeks of unpaid leave.

Other Leave

None.

Marriage Leave

None.

Bereavement Leave

None.

Termination

Termination Process

If an employee has been employed for at least 13 weeks an employer should provide the statutory minimum of 1-week dismissal notice unless stated otherwise within the written contract.

If an employee feels the dismissal is unfair, they may ask for a written statement reasoning the dismissal. The statement should be provided within 14 days of the request.  

When employment ends employees shall receive any money owed and a payslip.

Notice Period

The notice period in Ireland is:

Severance Pay

When dismissed they have the right to receive wages owed to them for work completed. They are also to receive payment for annual leave earned but not taken. 

Employers are not required to pay severance to employees who have been terminated.  

For cases of redundancy employees are eligible to receive: 

  • two weeks’ pay 
  • extra bonus week 

Redundancy pay is set to a maximum limit of 600 per week. A worker with 5 years of consecutive employment is eligible for 11 weeks redundancy pay.

Probation Period

The probationary period can last from 6 to 12 months.