In recent years, top companies have been rethinking how they approach recruitment. As distributed teams become more commonplace, businesses are tapping into the limitless potential of remote, global hiring. Countries across the globe are brimming with talent, and Ireland has emerged as a sought-after hub for top remote talent.
If you’re thinking of hiring from Ireland, you’re not alone. It’s home to a highly educated and skilled English-speaking workforce with a strong cultural affinity to the US. Ireland is also conveniently located in the GMT zone, aligning typical work days with the UK and other European countries.
If you’re interested in hiring employees from Ireland, it’s key to understand how much it costs. This guide will break down everything you need to know.
Costs to Consider
There are a number of costs to keep in mind when hiring employees from Ireland. Some are legally mandated, while others are optional but frequently offered. We’ll also go over some fringe benefits that can help attract and retain top talent.
Mandatory Costs
- Salary
- Taxes and benefits
- Paid time off
- Overtime pay
- Severance pay
Optional and Frequently Offered Benefits
- Extended health plan
- Added Benefits
- Bonuses, discounts, and rewards
Optional Perks
- Coworking space
- Health and wellness benefits
Mandatory Costs of Hiring in Ireland
Mandatory costs are costs you must factor into your hiring budget to remain compliant with Ireland’s local laws and regulations.
Salary
As of January 1st, 2023, the minimum wage in Ireland is €11.30 per hour or USD 12.36. This rate only applies to those aged 21 and over. For those aged under 21, there are lower minimum wage rates.
On average, full-time workers in Ireland make a gross monthly salary of €3,683 a month and €44,202 a year. In the US, this would be 4,028.65 per month and 48,350.36 per year.
Taxes and Contributions
Ireland requires that employers withhold taxes from their workers' paychecks, which includes Pay As You Earn (PAYE/income tax), Pay Related Social Insurance (PRSI), and Universal Social Charge. Employers' contributions add up to 11.05% of the employee's gross salary. However, it’s reduced to 8.80% on salaries below €441.
Paid Leave
Employees in Ireland are entitled to the following types of paid leave from work.
Vacation: In Ireland, employees are entitled to a minimum of 4 weeks (or 20 working days) of paid annual leave per year. Part-time workers are entitled to the same annual leave entitlements on a pro-rata basis.
Sick leave: Employees are entitled to 10 paid sick days per year. The paid sick leave can be used for personal illness or injury, as well as for caring for a sick family member. If an employee needs more time off due to illness, they may be entitled to unpaid leave under the terms of their employment contract or the law.
Maternity and Parental Leave: In Ireland, pregnant employees are entitled to 26 weeks of maternity leave, and they may also be entitled to an additional 16 weeks of unpaid maternity leave. Employees are entitled to maternity leave benefits from the government or their employer if offered.
In terms of parental leave, each parent is entitled to 26 weeks of leave for each child up to the age of 12. This leave is unpaid, but some employers may offer paid parental leave as a benefit. Additionally, employees may be entitled to up to 26 weeks of unpaid leave to care for a sick child.
Public holidays: Ireland has ten public holidays. Employees are typically entitled to paid leave on these days.
Overtime Pay
In Ireland, the policy for overtime pay is that employees who work more than 39 hours per week are entitled to receive overtime pay at 1.5 times their standard hourly rate for the extra hours worked. There are also specific rules regarding overtime pay on Sundays and public holidays, which generally require employers to pay employees at a higher rate. It is important to note that these policies may vary depending on the industry and collective bargaining agreements in place.
Severance Pay
Employers are not required to provide severance pay to employees in Ireland. However, if an employee is made redundant and has worked continuously for the employer for at least two years, they may be entitled to a statutory redundancy payment. This payment is based on the employee's length of service, age, and weekly pay, and it is subject to a maximum limit of €600 per week. Some employers may also have their own severance pay policies that go beyond the statutory requirements.
Optional Costs
Attracting in-demand talent in today’s job market isn’t easy. The ongoing labor shortage has companies locked in fierce competition worldwide, making it increasingly important to level up. Consider implementing the following benefits to attract and retain top talent.
Benefits
Offering a solid benefits package shows job seekers and employees that you value your team. Many employers offer private health insurance as a benefit to Irish employees, which covers medical expenses not covered by the public health system.
An EOR, like Borderless, offers localized benefits packages that typically include the following:
- Medical Insurance
- Vision Insurance
- Dental Insurance
- Life Insurance
- Retirement Contributions
In addition to health insurance, it’s wise to add extra perks to your benefits package. Consider offering a health and wellness spending account, professional development opportunities, and monthly subscriptions. These are just a few attractive offerings that can help incentivize new hires.
Bonuses and Extras
Along with attracting top talent, bonuses come with a range of benefits. They help to improve retention rates, strengthen company morale, and boost productivity. Providing your team with a variety of generous bonuses shows them you value their hard work. There are a number to choose from, like signing, referral, and holiday bonuses.
Perks and Rewards
In addition to bonuses, many employers opt to provide their team with fun perks and gifts as a way to show their appreciation. For example, employers offer employees rewards based on their interests, such as free sports tickets or live shows. They wine and dine employees and work to show them a good time outside of working hours.
Another approach many top companies take is to offer quality employees more paid time off and flexible working arrangements.
Workspace Costs
Working with a global team helps cut down on costs surrounding real estate, utilities, cleaning, office furniture, etc. In short, remote-first work can save you a ton. However, it’s a good idea to put aside some money for your distributed team members' workspaces.
Many companies offer their remote employees a budget for their home office or set them up in a coworking space. These membership-based workspaces have been proven to help employees thrive and are available throughout Ireland’s big cities.
You can sign up for DoSpace in Dublin, a beautiful space immersed in nature, for €299 per month, which stands at 327 USD. WeWork has four locations throughout Dublin, which offer a range of coworking packages priced as low as €134.37 (147 USD).
Save with Borderless
Sign up with Borderless to learn everything you need to know about hiring in Ireland. Our intuitive platform and dedicated team will make sure you take care of your new teammates and maintain compliance every step of the way. Book a demo today.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
