Our guide to Payroll in Ireland

Doing Business in Ireland

Ireland stands as a beacon of economic growth and innovation within Europe, offering a dynamic and supportive environment for businesses across a wide range of sectors. Known for its open economy, strategic location, and pro-business policies, Ireland has become a preferred destination for multinational corporations, startups, and entrepreneurs looking to tap into the European market.

Ireland's strategic location on the edge of Europe offers direct access to the EU's Single Market and a gateway to North American and global markets. This unique positioning, combined with an extensive network of air and sea routes, provides businesses with unparalleled opportunities for trade and export.

Ireland is renowned for its competitive corporate tax rate, one of the lowest in the EU, which stands at 12.5% for active business income. This favorable tax regime, coupled with a comprehensive treaty network for double taxation avoidance and various tax incentives for research and development, makes Ireland an attractive location for international investment.

Ireland's commitment to innovation is evident in its dynamic startup ecosystem, robust investment in R&D, and the presence of leading global tech companies. The country has established itself as a European hub for technology, pharmaceuticals, and finance, supported by government initiatives that foster innovation, collaboration, and entrepreneurship.

As a committed member of the European Union, Ireland offers businesses unfettered access to the EU's Single Market, allowing for the free movement of goods, services, capital, and people. This access is crucial for companies looking to serve the European market from an Ireland-based operation.

Doing business in Ireland presents a unique blend of opportunities, from its pro-business tax environment and strategic European location to its thriving innovation ecosystem and skilled workforce. The country's stable economy, supportive government policies, and strong commitment to the EU and global markets provide a solid foundation for businesses looking to establish or expand their presence in Europe. With its welcoming business environment and focus on future growth sectors, Ireland is poised to remain a key destination for international investors and companies in the years to come.

Foreign Direct Investment (FDI)

Ireland has become a cornerstone for Foreign Direct Investment (FDI) within Europe, distinguished by its strategic embrace of global commerce, innovation-driven economy, and a business-friendly environment. The nation's success in attracting FDI is a testament to its competitive advantages, including a low corporate tax rate, a highly skilled workforce, and its status as an English-speaking gateway to the European market.

One of the most significant draws for FDI in Ireland is its corporate tax rate of 12.5% on trading income, one of the lowest within the EU. The Irish government is proactive in its support for business and investment, offering a range of incentives, grants, and support services designed to facilitate business growth and development. Agencies like IDA Ireland play a crucial role in attracting foreign direct investment (FDI) by helping with site selection, regulatory guidance, and access to government incentives.

Key Incentives for FDI in Ireland

• Competitive Corporate Tax Rate: Ireland's corporate tax rate of 12.5% on trading income is among the lowest in the European Union, providing a significant incentive for businesses to invest.
• R&D Tax Credits: A 35% tax credit for research and development activities on top of the standard 12.5% corporate tax rate, effectively reducing the cost of R&D.
• Intellectual Property (IP) Regime: Attractive tax benefits for revenue generated from IP assets, encouraging companies to develop and manage their IP in Ireland.
• Knowledge Development Box (KDB): A preferential tax rate of 6.25% on profits derived from qualifying assets developed through R&D activities in Ireland, aimed at promoting innovation.
• Double Taxation Treaties: An extensive network of double taxation treaties with over 70 countries, minimising tax liability for international businesses.
• IDA Ireland Support: IDA Ireland offers various supports to foreign investors, including grant aid, assistance with property solutions, and help navigating the regulatory environment.
• Special Assignee Relief Programme (SARP): Tax relief for employees assigned to work in Ireland from abroad, aimed at attracting key talent.
• Training and Employment Grants: Financial incentives for companies creating new jobs or investing in the training of their workforce in Ireland.

Opportunities Across Key Sectors

• Technology and Digital: Ireland is a hub for leading tech companies, offering opportunities in software development, cloud computing, and cyber security.
• Pharmaceuticals and Biotechnology: Home to many of the world's top pharmaceutical companies, Ireland offers opportunities for investment in manufacturing, R&D, and biotech innovation.
• Financial Services: Ireland's International Financial Services Centre (IFSC) in Dublin is a global hub for finance, with opportunities in fintech, banking, insurance, and asset management.
• Green Technology and Renewable Energy: With a focus on sustainability, Ireland presents opportunities in wind and solar energy, green tech, and sustainable practices.
• Agri-Food: As a leading exporter of agri-food products, Ireland offers opportunities in food and beverage innovation, sustainable agriculture, and value-added food processing.
• Medical Devices: Ireland is one of the largest exporters of medical devices in Europe, with opportunities in manufacturing, R&D, and supply chain management.
• Creative Industries: The country's vibrant creative sector, including film, animation, and digital media, offers opportunities for investment in content creation and multimedia production.

Ireland's strategic approach to FDI, developed by a blend of attractive incentives and wide-ranging opportunities, positions the country as a leading destination for global businesses looking to innovate and expand. The government's commitment to fostering a pro-business environment, coupled with Ireland's skilled workforce and participation in the EU market, creates a landscape where businesses can thrive. Whether it's leveraging tax advantages, tapping into a robust ecosystem of innovation, or engaging with a diverse and open economy, Ireland offers a platform for sustainable growth and international success.

Basic Facts about Ireland

Country: Ireland

Population: 5,46 million (World Bank, 2025)

Capital: Dublin

Major Language(s): English

Monetary Unit: Euro

Main Exports: Pharmaceutical products, organic chemicals & medical devices

GNI Per Capita: $ 77,920 (World Bank, 2025)

Internet Domain: .ie

International Dialing Code: +353

How to say in Irish

Hello: “Dia Duit”

Good Morning: “Maidin Mhaith”

Good Evening: “Tráthnóna Maith”

Do you speak Irish? “An bhfuil Gaeilge agat”?

Goodbye: “Slán”

Thank you: “Go raibh maith agat”

See You Later: “Feicfidh tú nĺos deanaĺ”

Public Holidays

There are multiple statutory holiday schedules within Ireland. Below are the statutory national holidays in Ireland for 2026.

Please note that St. Stephen's Day in 2026 falls on a Saturday, so the observed holiday for workplaces might be on the following Monday, which is typical for holidays that fall on weekend

Registrations and Establishing an Entity

To operate a business and process payroll in Ireland, establishing a legal entity is essential. Ireland offers various entity types to suit different business needs, enabling companies to thrive in its dynamic economy. Below is an expanded overview of company registration, entity types, and related processes in Ireland.

Entity Types in Ireland

1. Private Company Limited by Shares (LTD): The most common and flexible type of company in Ireland, suitable for any commercial purpose. It requires at least one director and a company secretary. A business structure that provides limited liability protection to its shareholders, making it an attractive option for many entrepreneurs and businesses.
2. Designated Activity Company (DAC): A private company with share capital or private company limited by guarantee with share capital. Suitable for companies undertaking specific activities. A DAC must have at least two directors and a company secretary.
3. Company Limited by Guarantee (CLG): Used mainly by non-profit organizations. It does not have share capital, and the members' liability is limited to the amount they undertake to contribute in the event of winding up.
4. Public Limited Company (PLC): Can offer shares to the public and must have a minimum share capital of €25,000, with at least 25% fully paid up before commencing business. At least two directors are required. May list their shares on a stock exchange and offer them to the public.
5. Branch/External Company: A foreign company can establish a branch in Ireland, which must register with the Companies Registration Office (CRO) within one month of establishment.
6. Partnership: Either a general partnership, where partners have unlimited liability, or a limited partnership, where some partners have limited liability.

Registration Process

• Company Formation: Choose the appropriate entity type and submit the required documents, including the company's Constitution and details of directors and shareholders, to the CRO. For LTDs, Form A1 and the Constitution must be filed.
• Tax Registration: After company registration, complete a TR2 form to register the company for taxes including Corporation Tax, PAYE (Employer), VAT, and Relevant Contracts Tax (RCT), if applicable. The registration can be done online via the Revenue Online Service (ROS).
• Employer Registration: To process payroll, the company must be registered as an employer with Revenue. This is part of the TR2 form submission.
• Bank Account: Opening a corporate bank account in Ireland may require proof of company registration, tax registration, and personal identification documents for directors and significant shareholders.

Penalties for Late Submission and Payment

Penalties for the late submission of tax returns and payments in Ireland vary based on the tax type, the amount overdue, and the length of the delay. They can range from interest charges on late payments to fixed penalties for late filing of returns. It's crucial to adhere to Revenue's deadlines to avoid penalties.

Additional Considerations

• Annual Returns: Companies must file an annual return with the CRO, providing updated information on the company's affairs, including financial statements.
• Regulatory Compliance: Depending on the industry, additional registrations or licenses may be required. Ensure compliance with all relevant Irish regulations and industry standards.

Establishing a business entity in Ireland involves careful consideration of the entity type best suited to your business needs, followed by a structured registration process with the CRO and Revenue. Adhering to Ireland's regulatory framework, from company formation to tax compliance, is crucial for successful business operations and payroll processing in Ireland.

Banking

It is not mandatory to make payments to employees from an in-country bank account.

Working Week

The working week in Ireland is typically Monday to Friday. The working day for commercial offices is usually 8 hours, typically from 08:30 or 09:00 to 17:00.

Employment Law

Holiday Accrual / Calculations

Employees are entitled to paid annual leave equal to:

• 4 working weeks in a leave year when they work at least 1,365 hours.
• 1/3 of a working week for each month in a leave year when they work at least 117 hours.
• 8% of the hours they work in a leave year, subject to a maximum of 4 working weeks.
• An employee who works for 8 or more months in a leave year is entitled to an unbroken period of 2 weeks annual leave.
• Annual leave payment is to be paid to the employee in advance of them taking the leave. Annual leave payment is at the employee's normal weekly rate or the rate proportionate to their normal weekly rate.
• The legislation on annual leave is set out in the Organisation of Working Time Act 1997 and Workplace Relations Act 2015.

Maternity Leave

In Ireland, while employers are not mandated to pay employees during maternity leave, employees may qualify for Maternity Benefit—an allowance from the State—during the 26 weeks of basic maternity leave.

Employees must start maternity leave at least 2 weeks before and at least 4 weeks of maternity leave after the birth date.

Employees are entitled to 16 weeks of additional maternity leave that is unpaid and not covered by Maternity Benefits. Additional maternity leave must begin immediately after an employee’s 26 weeks of basic maternity leave. Employers are not obliged to pay employees who take additional maternity leave.

The entitlement is not based on one's salary but on their social insurance contributions (PRSI). The Maternity Benefit is paid at a fixed weekly rate of €299.

If companies wish to supplement the Maternity Benefit with additional payments - creating a sort of 'top-up' system to ensure the full or partial maintenance of the employee's regular income - they may do so.

Paternity Leave

Paternity Leave in Ireland is available to all eligible employees, regardless of whether they are full-time, part-time, or casual. This includes fathers, same-sex partners of a child's mother, and partners living with the mother for at least a year, including the date of the child's birth or adoption placement. Paternity Leave Act of 2016 grants employees two weeks of paternity leave to support their partners and bond with their newborn or newly adopted child.

The two weeks need to be taken consecutively, and the leave can start from the child's actual date of birth or placement or an agreed-upon later date, but it must be within 26 weeks of birth or placement.

While employers are not required to pay wages during paternity leave, employees may qualify for state-mandated Paternity Benefit from Ireland's Department of Social Protection.

Parental Leave

Parental leave focuses on providing longer-term arrangements. The Parental Leave Acts 1998-2019 allows for unpaid leave from work to take care of children. As of September 1, 2020, parental leave can be taken for children up to 12 years of age, with some exceptions for children with disabilities or in cases of adoption.

Each parent is eligible for up to 26 weeks of parental leave, separate from maternity or paternity leave. This leave can be taken as a continuous period or in separate blocks spread over a period of years based on mutual agreement with the employer.

The employees’ job is protected during this time.

Parent’s Leave

Parent’s leave entitles each parent to 9 weeks’ leave during the first 2 year of child’s life. Both parents have an equal separate entitlement to the leave.

The leave can be taken as one continuous period of 9 weeks or separate periods of not less than one week.

The entitlement is not based on one's salary but on their social insurance contributions (PRSI). The Parent’s Benefit is paid at a fixed weekly rate of €299.

The employer is not required to pay an employee while on Parent’s Leave however, some employers “top-up” the salary during the leave period.

Sick leave & sick pay

An employee has a right to 5 days’ statutory sick pay per year (statutory legal minimum). It is paid by an employer at 70% of the employee’s normal pay up to a maximum of €110 a day.

An employer can provide more generous sick pay scheme however, they cannot give an employee less than the statutory amount.

An employee's sick leave entitlement commences after they have completed at least 13 weeks of continuous service. Sick leave can be taken as consecutive or non-consecutive days.

The legislation on statutory sick pay is set out in the Sick Leave Act 2022.

National Service

There are no national service obligations in Ireland.

National Minimum Wage 2026

As of January 1, 2026, the national minimum wage in Ireland has been updated to €14.15 per hour. This adjustment is part of Ireland's commitment to ensuring fair wages and reflects the economic conditions to support both workers and businesses across the country.

Sub-minimum rates apply to some groups, such as individuals under the age of 20, which are detailed in the table below:

Tax & Social Security

In Ireland, the tax year runs from 1^st January to 31^st December.

Employers are obliged to deduct the following from their employees the following:

• Income Tax (IT)
• Pay Related Social Insurance (PRSI)
• Universal Social Charge (USC) and
• Local Property Tax (LPT), if applicable.

Employers must pay all taxes deducted from employees to Revenue and report the payroll details each time employees are paid (on/before the pay date) through a Payroll Submission. If employees are paid monthly, the payroll submission needs to be submitted each month. If employees are paid weekly, the submission ought to be completed each week.

Revenue will generate a statement for the month by the 5^th of the following month. The statement will show an employer’s liability for that month, based on the payroll submissions.

Employers can accept the Statement by the 14^th of the following month, and it then becomes an employer’s monthly statutory return. If the Statement has not been accepted by the deadline, Revenue will deem it as an employer’s statutory return on that day.

Revenue Payroll Notification (RPN)

An employer must request the Revenue Payroll Notification (RPN) for each employee every time a payroll is processed. This will ensure that the correct tax credits and cut-off points are being used.

The RPN shows how much needs to be deducted for:

• Income Tax
• USC
• LPT (if applicable)

It includes:

• Tax Credits
• Cut-off points for Income Tax & USC
• Pay, Tax and USC already deducted for any ceased employment since 1 January, unless on a Week 1/Month 1 Basis
• Any exemptions from IT or USC

Income Tax

Under the PAYE system income tax and USC tax deductions are calculated using one of the following three methods:

1. Cumulative Basis
2. Week 1/Month 1 Basis
3. Emergency Basis

• Cumulative Basis

In most cases, the PAYE system is operated on a Cumulative Basis. The tax credit system will operate on a cumulative basis for both, the tax credits and the standard rate cut off point. This means that the tax credits and/or SRCOP which are not used in a pay period are carried forward and available to use in the calculation of the tax due in the following pay period within the tax year.

The cumulative system also applies to the deduction of USC.

• Week1/Month1 Basis

When Week1/ Month1 Basis applies, PAYE and USC are not operated on a Cumulative Basis, and each pay period is looked at in isolation.

Any calculations of the tax due for each week/month are based purely on the emoluments received in that week/month. Pay accumulated from the beginning of the tax year has no bearing on the calculation. The employer is not permitted to make any refunds of tax under the Week1/Month1 Basis.

This basis is normally issued where there is:

• A specific request by an employee who does not wish to disclose the amount of their earnings in his previous employment to their new employer,
• A discovery of an over- allowance in the tax credits granted for the current year which, if corrected by issuing the cumulative basis, would result in excessing deductions for the balance of the year (the over allowance could have arisen from a change in the employee’s circumstances e.g., a pay rise),
• A lack of information about prior employment or earnings in the current year because of which a cumulative basis cannot be issued, or
• Certain cases of non-tax residency.

• Emergency Basis

The Emergency Basis must be used by an employer in any of the following scenarios:

• The employee has not provided the employer with a PPS number, or
• The employer gas contacted Revenue for an RPN but has received a response saying the employee is not registered with Revenue (“no RPN found”).

The employer should advise the employee to contact Revenue, if they have a PPS number, or to contact Department of Social Protection if they do not have a PPS.

The Emergency Basis is non- cumulative, and each week/month is looked at isolation and the marginal taxes apply.

Standard Rate Cut-Off Point

The maximum amount of income taxable at the standard rate of IT (20% for 2026) depends on an individual’s personal circumstances, i.e. whether the individual is single, single with dependent children, widowed, widowed with dependent children, married and if married, whether they are the sole earner.

The corresponding rate bands for 2026, for each of these scenarios, are as follows:

* The standard rate tax band for a married couple jointly assessed is €53,000.00 for 2026. However, where both spouses have taxable income for the tax year, the standard rate tax band may be increased up to a maximum of €88,000.00. This limit will be reached provided the higher earning spouse has taxable income of at least €53,000.00 and the lower earning spouse has taxable income of at least €35,000.00.

When both spouses have income and are jointly assessed, the standard rate tax band of €53,000.00 is increased by the lower of €35,000.00 and the “specified income” of the lower earning spouse.

Tax Credits

An individual may be entitled to varying levels if tax credits depending on their personal circumstances. The most common tax credits are the basic personal tax credit (€2,000.00 for a single person or €4,000.00 for a married person for 2026) as well the employee tax credit (€2,000.00 for 2026).

Tax credits are not offset against an individual’s income. They are instead deducted from the gross amount of income tax due. If a particular payment qualifies for relief as tax credit, that payment is first multiplied by 20% to convert it into a tax credit.

The below schedule sets out some of the main (non-refundable) tax credits for 2026:

Tax Exemption & Marginal Relief

Some employees are entitled to tax exemption each year, where certain conditions are met for example:

• Marginal Relief
• Some DSP payments
• A basic or increased exemption for Lump Sum payment from an employer
• Artists’ Exemption
• Scholarship Exemption

An employer should only apply a tax exemption if they are instructed to do so on the most recent RNP.

Universal Social Change (USC)

USC replaced the health contribution and income levy that applied previously. It is charged on the employee emoluments that are subject to PAYE system, including notional pay, before any deduction is allowed for permanent health insurance or pension contributions. It does not apply to social welfare payments.

USC Standard Rates & Thresholds for 2026:

If an individual’s aggregate income for USC purposes is less that €13,000.00 for the year, the individual is exempt from USC in 2026. To the extent that an individual’s income exceeds the €13,000.00, the full amount of the income is subject to USC and not just the excess.

The rates are reduced (0.5% & 2%) in certain cases as set out below for an individual who:

1. Has a medical card, or
2. Is aged 70 or over during the tax year,

and whose aggregate income for the year does not exceed €60,000.00.

Pay Related Social Insurance (PRSI)

PRSI is Ireland’s equivalent of social insurance or social security. It goes into the Social Insurance Fund (CIF) for social welfare pension/benefits. It is paid by an employee as well as an employer. The value of the payment is based on the amount of the employee’s pay and their contribution class. The PRSI class determinates the rate an employer uses to calculate the EE & ER PRSI deduction. The most common classes are A1 and S1 (certain company directors).

With very few exceptions, all employees, whether full- time or part- time, earning €38 or more per week and who are aged between 16 and pensionable age 66, pay PRSI contributions into the SIF.

The rates for 2026 are as follows:

*Weekly/monthly threshold: €552/€2,392

**A PRSI credit of up to €12 per week applies to earnings between €352.01 and €424 per week, or €1,525.01 and €1,837.00 per month.

All PRSI Rates will increase by 0.15% from 01/10/2026

Reporting & Employer’s obligations

An employer is responsible for ensuring that:

• The correct deductions are made in accordance with the RPN issued by Revenue from the employee/director’s pay,
• The amounts deducted are paid over on time to the Collector Generals office, and
• The monthly summary of payroll submissions prepared by Revenue is reviewed and corrected if required so that the employer is deemed to make a correct monthly return.

Failure to comply with these requirements will result in the employer being charged penalties and interest.

4.2 An employer’s duties in respect of the operation of the PAYE system can be split over the tax year as follows:

Before the start of the tax year, each employer must:

• Check that they have an RPN for each employee (In December each year Revenue will make available an RPN for all employees)
• Advise the Revenue of the name, address and PPSN of each employee for whom no RPN was received.

During the tax year, the employer must:

• Make a payroll submission to Revenue before making any payments to employees.
• Regularly (at least quarterly) check the calculation of benefits-in-kind included as notional pay in calculating income tax, PRSI and USC to be deducted from cash payments.
• Deduct income tax, PRSI and USC on payments made to employees, directors and pensioners in accordance with the most up to date RPNs.
• Review the monthly summary issued by Revenue by the 5^th day of the month which summarises the payroll information submitted for the previous month and make any adjustments required to it by the 14^th day of that month.
• Make payments of income tax, PRSI (including employer PRSI) and USC to the Collector General within 14 days (or 23rd of the month if pay online) of the end of each month or quarter (if permitted to pay on a quarterly basis).
• Request RPNs for new employees and notify Revenue of employees leaving by including the date of leaving in the payroll submission for the last payment to the employee.
• Keep a register of employees and notify the Revenue of details of new employees or changes of address.

Payroll

It is legally required in Ireland to provide employees with an online/paper payslip for each pay period.

Reports & Payroll Data

Where an employer fails to comply with their obligations under the PAYE system including failing to:

• Submit a return required
• Submit tax deducted to the Collector General
• Make any deduction or repayment in accordance with PAYE regulations
• Keep and maintain a register of employees and all the employment & payroll documents for 6 years,

the employer is liable to a penalty of €4,000.

Payslip Example

It is mandatory that payslips are in English.

New Employees

The registration is done through submitting an RPN to Revenue. It creates the employment on Revenue’s site and sends back an RPN response with tax credits and cut-off points to be applied to the employee’s pay.

All employees will be placed on Emergency Basis until they are updated by an RPN.

The following is required to set up a new employee:

Leavers

When an employee leaves a job, the employer is required to enter the employee's leaving date and the details of their final pay and deductions into Revenue's online system through the Revenue Online Service (ROS). This information must be accurate and timely to ensure that the employee's tax records are up to date. This is completed by a Revenue Submission.

Employers' compliance with these requirements is crucial for the smooth operation of the PAYE system, ensuring employees are correctly taxed and can access their tax information when needed. It also simplifies the process for employees to manage their tax affairs, especially when starting new employment or filing for tax returns.

Employee Benefits

Taxable Employer Benefits

Benefits provided by an employer to an employee, which are taxable, include:

• Accommodation that is free/subsidised where the job does not require an employee to live in the accommodation.
• Awards made to an employee due to staff suggestion schemes
• Private use of a company charge card by an employee
• Childcare facilities provided by an employer that are free/subsidised or provided by independent facility, where the employer pays for of subsidises the cost
• Employer provided cars for private use
• Employer provided vans for private use
• Discounts foe employees where the goods are sold at below the employer’s cost
• Exceptional performance awards, whether in the form of cash, vouchers or gifts (unless small benefit exemption applies- please refer to NT employee benefits section for more details)
• Loans where no interest is charged or the rate of the interest is “preferential”
• Meal vouchers (disregarding 19 cent per voucher)
• Medical insurance premiums
• Shares in a company that are given by the company to an employee free of charge or at a discounted price
• Subscriptions to a professional body where a membership of the body is not a requirement of the job.

Non-taxable Employer Benefits

The following benefits provided by an employer to an employee are not taxable:

• Accommodation that is free/subsidised where the job requires an employee to live in the accommodation
• Bicycles & safety equipment under the Cycle to Work Scheme
• Canteen meals that are free/subsidised where they are provided to all staff
• Car parking
• Employer contributions to a Revenue approved scheme
• Certain examination expenses
• Entry visas and work permits
• Some long-service awards
• Information technology equipment, including phones provided for business use
• From 1 January 2025, up to five small benefits that are not in cash and are worth €1,500 or less in total (Small Benefit Exemption)
• Subscriptions to a professional body where membership of the body is a requirement of the job
• Travel passes

Reportable non-taxable benefits (Enhanced Reporting Requirements)

Since 1 January 2024, employers are obliged to report to Revenue details of certain expenses and benefits, paid to employees and/or directors. This report must be sent to Revenue on/before the date of payment to the employee.

When an employee receives an untaxed payment/benefit from an employer under one, or more, of the following categories:

• Small Benefit Exemption
• €3.20 Remote Working Allowance and, or
• Travel & Subsistence

Employees can view all the above details in My Account on ROS.

Expenses

Reimbursement of expenses incurred is free of tax. Mileage that is paid within approved rates is tax-free depending on the reason the mileage was incurred. All other payments are subject to taxes.

Visas & Work Permits

Individuals who are citizens of a country within the European Economic Area (EEA) do not require a work permit. All non-EEA nationals require an employment permit. Additionally, Switzerland do not require a work permit to work in Ireland.

All non-EEA nationals generally require an employment permit to work in Ireland, issued by the Department of Enterprise, Trade and Employment. Employment permits can be applied through the Employment Permits Online System (EPOS). An employment permit application must be received at least 12 weeks before an employee’s start date.

Applications must include a signed contract of employment from both parties and must be completed in the system within 28 days of its starting date due to data protection.

9 types of Employment Permits are set out in the Employment Permits Act 2006. Below is more information on each permit, excluding the ‘Exchange Agreement’ and ‘Sport and Cultural’ Employment Permits:

Critical Skills Employment Permit

Targets highly skilled individuals in occupations where there is a shortage in the Irish labour market, offering benefits like easier family reunification and a path to long-term residency. Eligible occupations are listed in the Critical Skills Occupations List. Permit holders must have secured a 2-year employment contract and are expected to stay with the employer for at least 1 year. A permit holder's annual salary must be a minimum of EUR 64k or a minimum of EUR 32K for a restricted number of occupations.

Dependent Employment Permit

This permit allows a dependent of a Critical Skills Employment Permit holder to work in Ireland. The rate of payment must be minimum wage or above. A Labour Market Needs Test is not required.

Intra-Company Transfer Employment Permit

This permit allows a company to transfer senior management or key staff who are non-EEA nationals to Ireland. Permit holders must have been working with the employer for a minimum of 6 months. A permit holder's annual salary must be a minimum of EUR 40k.

General Employment Permit

All occupations are eligible unless otherwise listed in the Ineligible List of Occupations for Employment Permits. This permit can be issued for 2 years and can be extended to a maximum of 5 years, upon application. A Labour Market Needs Test is required, and a permit holder's annual salary must be a minimum of EUR 30k, in most cases.

Contract for Services Employment Contract

This permit can be issued for 2 years and can be extended to a maximum of 5 years, upon application. A Labour Market Needs Test is required, and a permit holder's annual salary must be a minimum of EUR 40k, in most cases.

Reactivation Employment Permit

This permit also foreign nationals who have fallen out of the system to work legally again. Permit holders must apply to the Immigration Service Delivery (ISD) initially to apply for this permit. The rate of payment must be minimum wage or above.

Internship Employment Permit

Employment must be listed in the critical skills occupations list. This permit can be issued for a maximum period of 2 years and is non-renewable. The rate of payment must be minimum wage or above.

Labour Market Needs Test are Generally required for some permits, demonstrating that the job offer has been advertised in the EEA for a specified period and no suitable EEA national was found for the position.

Key changes for 2026

While there were no major changes to personal taxes and tax bands.

The following are the key measures introduced by the Budget Statement for 2026:

1. Pension Auto-Enrolment (AE), known as “My Future Fund” (MFF), officially launched on 1 January 2026. MFF is a landmark initiative established under the Automatic Enrolment Retirement Savings System Act 2024, designed to extend pension coverage to over 760,000 workers who were not previously contributed to a pension or PRSA through payroll.

Administration of the scheme is largely centralized and managed by NAERSA, which is responsible for:

• Identifying and enrolling eligible employees
• Managing opt-in, opt-out and suspension request
• Collecting and investing contributions
• Enforcing compliance with the legislation

NAERSA also provides online portals for employers & employees (participants).

For employers, MFF significantly reduces pension administration, as NEARSA is managing most scheme-related processes at no cost to employers.

For employees, MFF offers automatic enrolment into a quality- assured, low-cost pension arrangement with:

• Mandatory employer matching contributions,
• A State top-up of €1 for every €3 contributed by the employee,
• A default lifecycle investment strategy,
• With no vesting period resulting in immediate employee ownership of contributions.

Contributions are calculated as a percentage of an employee’s gross pay and deducted from net pay. Contribution rates will be phased in as follows:

Chapter 32 of the Pensions Manual provides the tax treatment of MFF throughout its full lifecycle, confirming that:

• Employee contributions are not eligible for tax relief and repayments of employee contributions are not taxable,
• Employer contributions are tax deductible for the employer and repayment of employer contributions are taxable. Employer contributions are exempt from a charge to BIK for the employee,
• State contributions are exempt from tax,
• A tax-free lump sum of up to €200,000 is available at the date of retirement or death. This limit also takes account of any other pension lump sums received by the individual,
• The funds in an employer’s MFF account are subject to the Standard Fund Threshold regime.

1. A number of social protection payment increases came into effect, including:

• €10 increase in the maximum weekly rate of all social protection payments, with proportionate increases for qualified adults and those on reduced rates of payment,
• €8 increase in the weekly rate of Child Support Payment for children under 12, and €16 increase in the weekly rate of Child Support Payment for children aged 12 and over,
• €60 increase in the weekly Working Family Payment thresholds,
• €20 increase in the monthly rate of Domiciliary Care Allowance,
• €5 increase in the weekly rate of Fuel Allowance.

1. Increase in the USC Rate 2 (from €27,382.00 to €28,700.00) until 2027.
2. Increase of the National Minimum Wage to €14.15 per hour.
3. Rent Tax Credit was extended to 2028. All conditions pertaining to the credit and its value remain the same.
4. Mortgage Interest Tax Credit was extended until 2026.
5. Increase in all PRSI rates by 0.15% from 01/10/2026.
6. BIK on employer provided vehicles- from 1 January 2026 there was a new vehicle category introduced (A1) for zero emission cars. BIK on this category cars will be calculated at between 6% and 15% of the cars’ original market value (OMV), subject to business mileage.

The temporary reduction to the OMV, to reduce the amount of BIK payable for all cars in Cat A1, A, B, C and D (not E) and all vans, was extended to 2026, 2027 and 2028, on a tapered basis as follows:

• €10,000 for 2026
• €5,000 for 2027
• €2,500 for 2028

1. Key Employee Engagement Programme (KEEP) has been extended to 31 December 2028, subject to a commencement order, pending EU State Aid approval. All conditions of the scheme remain the same.
2. Special Assignee Relief Programme (SARP) has been extended for five more years until 31 December 2030. The minimum income threshold for new entrants has increased from 100K to €125K per annum. The annual end of year employer return filing deadline was extended from 23 February to 30 June following the end of the tax year.
3. Foreign Earning Deduction (FED) relief has been extended until 31 December 20230 and the amount of employment income which may be claimed on it has been increased to €50K.
4. A revised Code of Practice on Access to Part-Time Working has been signed into law. It provides practical guidance to help employers and employees agree part-time working arrangements that support flexible, inclusive and modern workplaces.

The updated Code operates within the framework of the Protection of Employees (Part-Time Work) Act 2021. The Act:

• Prohibits less favorable treatment of part-time employees compared with full-time employees,
• Ensures employee protection legislation applies equally to part-time and full-time workers,
• Improves the quality of part-time work, and
• Facilitates the development of part-time work on a voluntary basis and contributes to the flexible organization of working time in a manner which takes account of the needs of employers and workers.

1. Research & Development (R&D) Tax Credit had a number of amendments including:

• An increase in the rate from 30% to 35% and,
• An increase from €75,000 to €87,500 in the amount payable in Year One.

1. The application of the second reduced VAT rate of 9% to gas and electricity supplies was extended till 31 December 2030.