Employer of Record in Ireland: 2026 Cost and Compliance Guide

Ireland combines an English-speaking workforce with EU membership, which makes it a popular European base for US technology, life-sciences and financial-services companies, centred on Dublin, Cork and Galway. Employer costs are among the lowest in Western Europe: employer PRSI of 11.40% from October 2026, plus a small but growing auto-enrolment pension contribution.

An Employer of Record (EOR) can employ your hire in Ireland under an Irish contract and run payroll through Revenue's PAYE system, so you don't need to set up an Irish company first.

Irish employment costs are rising in steps: PRSI increases each October under a multi-year plan, and the MyFutureFund auto-enrolment scheme that started in January 2026 doubles its contribution rates in 2029. This guide covers costs, rules, provider comparison and when to set up your own Irish company. Figures link to official sources. We do not test or use the providers listed; see our methodology.

An Employer of Record is a company with an Irish entity that employs staff on behalf of foreign businesses. It issues the Irish contract and statement of terms, registers the employee for PAYE with Revenue, deducts income tax, USC and employee PRSI, pays employer PRSI, enrols eligible employees in MyFutureFund (unless they're in a qualifying pension), and handles leave, sick pay and terminations.

You direct the employee's work; the EOR carries the formal employer obligations and invoices you monthly.

Depending on the set-up, the arrangement can resemble agency work. The Protection of Employees (Temporary Agency Work) Act 2012 gives agency workers equal treatment on basic working conditions, and employment agencies need a licence. Ask your provider how its Irish model is structured.

Irish employment cost has three layers: gross salary, employer costs (PRSI and, for eligible employees, MyFutureFund) and the EOR fee.

Employer PRSI has no upper earnings limit. MyFutureFund contributions apply to earnings up to €80,000. The tables and estimator below apply this.

Annual cost at example salaries

What these figures include and exclude

• Employer PRSI is shown at the 11.40% rate in force from 1 October 2026. Further increases are scheduled for future Octobers.
• Employee PRSI (4.35% from October 2026), USC and income tax are deducted from gross pay and are not employer costs.
• MyFutureFund only applies to eligible employees (broadly aged 23–60, earning over €20,000, and not already in a payroll pension). Many employers offer a company pension with a 5%+ employer contribution instead.
• Statutory sick pay (5 days a year at 70% of pay, up to a daily cap) is paid by the employer and not included above.

Estimate your own cost

Enter a salary to see the estimated annual cost, including mandatory employer contributions and an EOR fee. Change the fee to match the quotes you receive.

Irish employment law is based on statute and EU directives, with a strong focus on written terms and fair procedures. Key rules below.

Written terms

Five core terms must be given in writing within 5 days of starting, and a full statement within one month.[4]Verify

Probation

Generally up to 6 months, extendable to a maximum of 12 months in limited circumstances.[4]Verify

Working time

Maximum average working week of 48 hours, with daily and weekly rest periods.[5]Verify

Annual leave

At least 4 working weeks of paid leave a year, plus 10 public holidays.[5]Verify

Sick pay

Statutory sick pay of up to 5 days a year at 70% of normal pay, subject to a daily cap, after 13 weeks' service.[4]Verify

Planned increases to the number of days have been delayed; check the current entitlement.

Family leave

26 weeks of maternity leave (plus 16 unpaid) and parent's leave per parent. State benefits are paid by the Department of Social Protection; employer top-ups are optional.[4]Verify

Notice periods

Statutory minimum notice from the employer rises from 1 week to 8 weeks with service. Contracts usually set longer periods.[4]Verify

Unfair dismissal

After 12 months' service, dismissal must be for a fair reason with fair procedures. Statutory redundancy pay is due after two years' service.[5]Verify

Statutory redundancy is two weeks' pay per year of service plus one week, subject to a weekly pay cap.

These EOR providers publish information about employing in Ireland. Prices are their own published starting rates in USD. Quote-only providers are marked.

In Ireland, ask whether the provider employs through its own Irish entity, how it handles pension provision (MyFutureFund or an occupational scheme), and whether it holds an employment agency licence where relevant.

For each provider's products, pricing model and fit signals, see the EOR provider directory.

The usual alternative is a private company limited by shares (LTD), registered with the Companies Registration Office (CRO). Incorporation typically takes one to two weeks. Every Irish company needs at least one EEA-resident director or a non-resident director bond, a company secretary, and a registered office in Ireland.

Ongoing costs include an accountant, payroll, annual returns to the CRO, corporation tax filings (12.5% on trading income, with a 15% minimum effective rate for large groups), and registration for PAYE and VAT.

For a step-by-step version of this calculation, see EOR vs local entity: a break-even framework.

1. 1

   Define the role and salaryDay 0

   Agree an annual gross salary, notice period, pension offer and benefits.

2. 2

   Compare itemised quotes1–3 days

   Request Ireland quotes covering the fee, deposit, pension and health-insurance options, and offboarding. Use the estimator to sanity-check totals.

3. 3

   Sign the service agreement

   Review liability for termination costs, IP assignment and data protection (GDPR) terms.

4. 4

   Contract and onboarding2–5 days

   The EOR issues an Irish contract and written terms. The employee provides their PPS number, ID and bank details, and registers the employment with Revenue via myAccount.

5. 5

   Payroll and pension set-up

   The EOR adds the employee to PAYE payroll and either enrols them in its pension scheme or in MyFutureFund.

6. 6

   Ongoing administrationMonthly

   Monthly payroll reporting to Revenue, PRSI and pension contributions, leave and sick-pay records.

Rates and rules on this page are based on the following official sources. Numbers in brackets in the tables above link to these entries.

1. 1
   PRSI for employers

   Revenue (Irish Tax and Customs)

   Employer PAYE, PRSI classes and rates.

2. 2
   MyFutureFund: automatic enrolment

   Department of Social Protection (gov.ie)

   Eligibility, contribution rates and employer obligations.

3. 3
   National minimum wage

   Citizens Information

   Current hourly minimum wage rates.

4. 4
   Employment rights and conditions

   Citizens Information

   Written terms, probation, sick pay, family leave and notice.

5. 5
   Employment rights guidance

   Workplace Relations Commission

   Working time, annual leave, public holidays, dismissal and redundancy.

6. 6
   Registering a company

   Companies Registration Office

   Incorporating and maintaining an Irish company.

Ireland is one of the most cost-efficient places to employ in Western Europe, at roughly 1.2–1.3× gross salary in total through an EOR, with costs edging up each year as PRSI and auto-enrolment rates rise.

An EOR is ideal for first hires and market tests. If you're building an EU hub, compare it against your own Irish company early, since Ireland is often chosen for commercial and tax reasons as well as hiring.

Also see our UK guide if you're comparing English-speaking markets.