The complete guide to offering employee benefits in Ireland

What employee benefits are mandatory in Ireland?

Irish employment law affords employees a variety of protections and rights at work, including the right to an array of statutory benefits. This complex body of legislation is made up of numerous Acts and Orders that are still being amended and altered, so not only is it important to understand what your responsibilities are, but also it’s crucial to ensure you stay on top of relevant changes to these living documents. Hiring an Irish employee and failing to provide them with the mandatory benefits package will put you at risk of legal repercussions. 

The benefits the Irish government requires employers to provide are statutory minimums. Many companies choose to add their own benefits to the packages they offer when hiring employees in Ireland to make themselves more competitive and to increase team satisfaction. Only full-time employees are entitled to benefits. Independent contractors–whether they’re Irish citizens or foreign nationals–are not included in statutory benefits laws.

Pension plans/retirement contributions

While you are not legally obligated to include an employer-provided pension plan in a benefits package, if your company does not offer one, you are required to give employees access to at least one Standard PRSA, or personal retirement savings account. Employers are permitted to contribute to PRSAs as well, but they don’t have to.

Additionally, Irish law mandates that employers let employees know–in writing–how much money they have in their PRSA monthly. You must also deduct the amount the employee requests from their paycheck without any additional charges.

Irish employees are normally permitted to start withdrawing money from their personal pension schemes when they turn 60. In some cases, such as when they’re covered by an occupational pension scheme, people opt for early retirement, but they must be at least 50 years old. 

Workers’ compensation insurance

In Ireland, most companies are required to take out a workers’ compensation insurance policy and provide coverage for lost wages and medical bills that are incurred if an employee is hurt on the job or develops an illness as a result of their job. While this is an expensive benefit for an employer, it’s also a necessary one that will protect your business from legal action.

Paid sick leave

While in the past, Irish employers weren’t required to provide paid sick days, as of 2023, a new entitlement went into effect. Now, under the new Statutory Sick Pay (SSP) scheme, employees are entitled to three paid sick days per year and 70% of their wages for those days, up to a maximum of 110 euros a day. 

Changes to the SSP law will continue from 2023 through 2026, so it’s crucial to keep on top of what’s going on. Each year, the number of sick days employees are entitled to will increase: in 2024, it will go up to five days; in 2025, it will go up to seven days. Finally, in 2026, it will reach 10 days. 

Parental leave

Employers are legally required to offer employees who give birth or adopt children seven weeks of leave, which can be taken at any time during the first two years of the child’s life or after they are placed in the worker’s home. Employees must notify their place of work of the dates they intend to take paternity leave or maternity leave six weeks beforehand.

As an employer, you do not have to pay employees while they’re on parental leave–the Irish government provides them with payment via the Parent’s Benefit program. Some companies choose to pay parents as a supplemental benefit. It’s also important to note that both mothers and fathers are covered under parental leave laws.

Paid annual leave

The Organisation of Working Time Act provides all employees with 20 days of paid annual leave each year. This number does not include the public or bank, holidays employees receive.

What employee benefits are optional in Ireland?

In addition to what’s legally required, many employers also choose to expand their benefits packages and offer supplementary plans and perks to help them stand out from the competition and attract and retain the right talent. Below, we’ll discuss some common supplementary benefits employers include when hiring employees in the Republic of Ireland.

Private health insurance

While every Irish citizen is entitled to government-funded public health care either completely free of charge or for a nominal fee, many employers offer private health insurance plans as part of their benefits packages. A private medical plan expands employees’ access to health care and usually covers things like an in-hospital stay and inpatient services at a private health care provider. It also affords employees the privilege of selecting the provider they’d like to see, which is not an option under the public health insurance scheme.

Life assurance plans

In addition to healthcare, many employers offer group life assurance plans. Also called death-as-a-service schemes, these plans are different from life insurance in that they are open-ended, rather than in force for a fixed term only. Employers who elect to provide this benefit pay the premium for the employees; upon the worker’s death, a lump sum is paid to their beneficiaries–provided they are still employed by the company. 

Income protection

This type of insurance provides a monthly income to employees who are unable to work due to illness or injury. This can be a valuable benefit for employees who have dependents, as it can help them to maintain their financial security during a difficult time.

Additional paid time off

Many employers offer paid leave beyond what Ireland’s statutory minimums require–usually, around four to eight extra days. Giving employees additional days or a way to purchase extra ones beyond Ireland’s generous annual leave provisions is an excellent way to ensure your company stands out from the crowd.

Employee assistance program (EAP) 

An EAP is a confidential counseling service that is available to employees. This can be a valuable resource for employees who are dealing with personal or work-related challenges.

How to hire employees in Ireland and offer them affordable benefits in minutes—with Rippling

Running a global workforce isn't easy. It can be a challenge for global companies just to keep their benefits compliant—let alone managing offer letters, equipment, payroll, and everything else global employees and contractors need.

That's why, if you're going to hire employees, contractors, or remote workers in Ireland, you need Rippling. Rippling makes it easy to onboard, manage, and pay employees and contractors around the world—in one system that helps keep you compliant with local employment laws and regulations.

We offer a native Employer of Record (EOR) service, which allows you to hire employees in Ireland, enroll them in benefits, and run payroll in 90 seconds—even if you don't have a legal entity there.

Rippling’s EOR is built on top of our native payroll rails, which means that when the time comes to bring HR in-house, you can move from our EOR to Global Payroll through your own entities—in minutes.

Disclaimer: Rippling and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.