Ireland Payroll in Context
The minimum wage in Ireland is €10.10 (since Feb 2020) and the average workweek is 39 hours and the maximum hours worked cannot be more than 48 hours in a week. Anything above this is considered as overtime. The usual office hours are from 9-5.30pm, including an hour for lunch.
By law, employers are to provide employees with a written contract of employment detailing the terms and conditions, which includes; the names of employer and employee, hours of work, job description, notice period, employment address and rate of pay. Employees will have tax deducted from their salary by their employer. GDPR laws have given employees more control over their personal information.
In Ireland, the basic maternity entitlement is 26 weeks regardless of the length of service. It is required that pregnant employees take at least two weeks before the due date and four weeks after. During this leave, maternity benefit is provided. Employees are entitled to take an extra 16 weeks’ maternity leave, but they will not be compensated by maternity benefit in this period. If the employee cannot return to their previous post, the employer must provide another suitable position with the same terms as their last post.
Holiday Pay & Sick Pay
All employees are entitled to annual leave, the minimum entitlement is four weeks paid holiday, but this entitlement can also be determined by how many hours they have worked in the year. Full-time employees earn one week’s paid leave for every three months they have accomplished. There are also nine public holidays in Ireland every year, which employees are entitled to.
It is at the discretion of the employer if they want to pay sick pay, but under Irish law, there is no obligation to pay someone if they are on sick leave. The employer must provide the employee with terms and conditions of ‘sick leave’ in writing within two months of being employed. Illness benefit can be applied for if you have made enough contributions through social insurance. Employers may also request a sick note from the employee’s doctor when on sick leave which should state the date of return to work. Employment may be terminated if the employee is frequently ill and is unable to continue working.
If an employee has accrued but not taken a holiday on the date of termination of employment, they are entitled to payment in lieu. Employees cannot make a deduction from final wages unless it is authorised under the statute, the employer has given consent, or it is permitted under the contract.
Irish residents are entitled to a state pension if they contributed to social insurance at 66 years old. The Pension contributions are made by both employer and employee. The minimum requirement contributed by employee equates to 10% of total annual contributions.
Universal Social Charge
The Universal Social Charge (USC) is paid by all employees making more than €13,000 per year. This is deducted from salaries on a weekly or monthly basis through the PAYE system. Most employees also make automatic contributions to the Social Insurance Fund, known as PRSI. The payable amount will differ and is deducted through PAYE. It is the responsibility of the employer to ensure it is deducted.
Want to know more? Join one of our Irish Payroll training sessions.