Employee Leasing in Ireland
Ireland’s remarkable infrastructure and great political and economic stability, along with its membership in the European Union, make the country one of the most favored destinations for multinationals to expand their activity. The country is well-connected to the United Kingdom and Europe and it has a very friendly business environment, which has already attracted over 1,700 multinationals, including some of the largest corporations in the world.
One of the easiest ways to benefit from the opportunities offered by the Irish economy is through employee leasing, as it greatly simplifies business expansion into Ireland, allowing companies to hire local talent without setting up a local subsidiary. Additionally, the employee leasing services offered by FMC Group are not restricted to the recruitment process but extend to the day-to-day administrative management of employees.
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- Advantages of Employee Leasing in Ireland
- Employee Leasing Services Offered by FMC Group
- Advantages of the Irish Market
- Recruitment in Ireland
- Minimum Wage and Payroll
- Social Contributions and Taxes
- Working Hours and Overtime
- Vacation Days
- Parental Leave and Sick leave
- Notice Period
Advantages of Employee Leasing in Ireland
- Expanding business activity into Ireland through employee leasing helps companies quickly enter the Eurozone market and benefit from all the advantages it has to offer.
- Employee leasing provides businesses with tremendous flexibility when expanding into a new market, allowing them to measure their potential as things progress.
- Employee leasing in Ireland allows companies to fully benefit from the high productivity of the Irish labor force while reducing expansion costs and risks.
- Employee leasing helps businesses focus on their growth strategy without worrying about the administrative management of their employees, as it is fully handled by FMC Group.
Employee Leasing Services Offered by FMC Group
- Preselection of candidates based on the client’s needs;
- Conduction of the entire recruitment process with the best candidates;
- Negotiation of employment contracts;
- Payment of taxes and social contributions according to the Irish labor law;
- Management of the payroll according to international standards;
- Monitoring paid vacations;
- Implementation of private health insurance if needed;
- Maintaining constant communication with clients regarding the management of their employees.
Management and Reporting Flow of Employee Leasing Services
Advantages of the Irish Market
- The Irish economy is known to be an exporting powerhouse, especially in the services sector. Being the only English-speaking country in the Eurozone, Ireland has attracted over 1,700 multinationals. In 2020, about 72% of total Irish exports were from multinationals established in Ireland.
- Ireland enjoys great political and economic stability. The Irish economy has proven to be one of the most resilient during the COVID-19 pandemic, as it was able to bounce back to a GDP growth rate of 13.5% in 2021. Moreover, the political stability of Ireland is in part thanks to its overwhelming support of the European Union membership. According to a recent survey, around 83% of Irish people feel positive about their country being a European Union member and 88% believe that Ireland has benefitted from this membership.
- The Irish infrastructure is resilient and flexible. Ireland is connected daily by sea and air to Europe and the United Kingdom. It also has a countrywide highway network that connects all regions. The quality of the Irish infrastructure is expected to improve even further over the next decade, as the Irish government has allocated a budget of EUR 165 billion for major infrastructure projects over the period of 2020-2030. In terms of internet connectivity, Ireland has access to low-latency networks to the United States, the United Kingdom, and the European Union, allowing technology multinationals established in the country to benefit from advanced telecoms and broadband infrastructure.
- Ireland has a highly educated population and thriving innovation-driven and high-technology sectors. Around 45% of Irish residents aged 23 to 34 have obtained a higher education degree. Ireland also has the highest rate of STEM graduates per capita in the Eurozone among 20- to 29-year-olds. This is mainly attributed to the Irish education system being greatly aligned with labor market needs, providing students with programs that are tailored to the skills needed in high-technology companies.
- The website of Ireland’s Industrial Development Agency contains detailed information about the advantages of expanding activity into Ireland for various sectors, including engineering, technology, media, etc.
Recruitment in Ireland
Minimum Wage and Payroll
- The minimum wage in Ireland is set at EUR 10.50 per hour.
- The payroll cycle in Ireland is usually either weekly or monthly, with wages paid on the last working day of each week or month.
Social Contributions and Taxes
|Social Security||8.80% – 11.05%|
|Universal Social Charge||0.50% – 11.00%|
|Total||4.50% – 15.00%|
|Employee Income Tax|
|Single employee with no children:
Up to EUR 36,800 per year
More than EUR 36,800
EUR 7,360 + 40% on excess over EUR 36,800
|Married couple with one income:
Up to EUR 45,800 per year
More than EUR 45,800
EUR 9,160 + 40% on excess over EUR 45,800
|Married couple with two incomes:
Up to EUR 73,600 per year
More than EUR 73,600
EUR 14,720 + 40% on excess over EUR 73,600
Working Hours and Overtime
- Working hours in Ireland cannot exceed 39 hours per week.
- Work performed over the standard working period has to be paid at a higher rate than the regular salary, but the rate is not defined by the law. It is usually regulated by employment contracts or collective agreements.
- Employees in Ireland are entitled to at least four weeks of paid leave per year.
- Ireland celebrates nine public holidays:
- New Year’s Day: January 1st;
- Saint Brigid’s Day: February 1st if it’s a Friday or the first Monday in February;
- Saint Patrick’s Day: March 17th;
- Easter Monday: Between March and April;
- May Day: First Monday in May;
- June Holiday: First Monday in June;
- August Holiday: First Monday in August;
- October Holiday: Last Monday in October;
- Christmas Holiday: December 25th – 26th.
Parental Leave and Sick Leave
- Female employees in Ireland are entitled to 26 weeks of paid maternity leave. They can also receive 16 extra weeks of unpaid leave. During the leave, employees receive a weekly stipend of EUR 245 from social security.
- New fathers are entitled to seven weeks of paid paternity leave, to be taken during the first six months after birth. The employee receives a stipend from social security during this period.
- Parents are entitled to up to 26 weeks of unpaid parental leave to care for their child until they are 12 years old.
- Employees in Ireland are entitled to three days of paid sick leave per year. Pay during these days equals 70% of the regular salary, up to a maximum of EUR 110 per day.
- Employees wishing to quit their job have to give a one-week notice, but it is common for employment contracts to extend the notice period for up to one month.
Further Useful Information
- The Irish Department of Enterprise, Trade, and Employment provides several detailed guides about the relationship between employers and employees in Ireland.
Disclaimer: Although we carefully researched and compiled the above information, we do not give any guarantee with respect to the actuality, correctness, and completeness.