How much does it really cost to hire in Ireland in 2026?
Ireland PRSI adds 11.25% to earnings above EUR 552 a week. That rate rises to 11.40% from October 2026. Add a new auto-enrolment pension scheme and 20 days of paid leave, and a EUR 60,000 hire costs materially more than the salary alone.
· Ireland guide
Illustration · Dublin, Ireland
A EUR 60,000 Ireland hire costs roughly EUR 65,000 to EUR 67,000 fully loaded (illustrative, based on verified statutory rates). The biggest single line is 11.25% employer PRSI on earnings above EUR 552 a week.
Add 1.5% employer pension under Ireland's new auto-enrolment scheme (launched September 2025) and 20 days of statutory paid leave, plus 10 public holidays. Statutory sick pay costs 5 days employer-funded days per year.
Employer PRSI rises to 11.40% from 1 October 2026. Budget the higher rate from the start if your hire spans that date.
The headline: what EUR 60,000 actually costs
Start with the base salary. Add 11.25% PRSI on earnings above EUR 552 a week. Add 1.5% employer pension on gross pay. Then layer in statutory leave. A EUR 60,000 Ireland hire lands at around EUR 66,000 in total employer cost (illustrative).
The 110 to 115% loading is lower than the UK because Irish PRSI is charged at 11.25%, not 15%. The new pension scheme is also in its opening phase at 1.5% for years one to three.
The PRSI threshold of EUR 552 a week (EUR 28,704 a year) means a portion of salary sits below the charge. The figures below are illustrative totals computed from verified statutory rates. They are not cached statutory figures.
| Line | EUR 60,000 hire (illustrative) | Source |
|---|---|---|
| Gross salary | EUR 60,000 | Contract |
| Employer PRSI (11.25% on EUR 31,296 above threshold) | EUR 3,521 | Department of Social Protection, PRSI Class A 2026 |
| Employer pension auto-enrolment (1.5% on gross, years 1-3) | EUR 900 | Auto-Enrolment Act 2024 s.61 |
| Statutory sick pay reserve (5 days at 70% of normal daily pay, illustrative) | EUR 80 | Sick Leave Act 2022 |
| Teamed fee | EUR 6,588 | from $599/month, converted at illustrative rate |
| Total annual employer cost (illustrative) | EUR 71,089 | ~118% of gross |
Illustrative totals are computed from verified statutory rates and are labelled as such. They are not cached statutory figures. The Teamed fee conversion from USD is illustrative and will vary with the exchange rate. Run your own numbers in the Employer Cost Calculator.
Employer PRSI Class A is 11.25% on earnings above EUR 552 a week. The rate rises to 11.40% on 1 October 2026. Employee PRSI is 4.2% on the same earnings (rising to 4.35% in October).
Source: gov.ie PRSI Class A Rates 2026
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Start with gross salary
Confirm the agreed gross annual salary. This is the base for all statutory calculations.
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Calculate employer PRSI
Apply 11.25% to weekly earnings above EUR 552. There is no upper ceiling on the charge.
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Add auto-enrolment pension
Add 1.5% employer pension on gross pay for phase one of the auto-enrolment scheme, rising to 3% in years four to six.
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Allow for statutory leave
Budget 20 days paid annual leave plus 10 public holidays, and 5 days of employer-funded sick pay per year.
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Add the Teamed fee
Add the from $599 per employee per month Teamed fee. This covers payroll, compliance, and dedicated support.
Employer PRSI: the biggest line
Employer PRSI Class A sits at 11.25% on weekly earnings above EUR 552 per employee. There is no upper ceiling on the charge.
The rate rises to 11.40% from 1 October 2026. If your hire starts before October, budget the higher rate from day one to avoid a mid-year cost surprise.
PRSI is Ireland's social insurance contribution. It funds state benefits including the Jobseeker's Benefit, illness benefit, and the new state pension entitlements. The employer pays the larger share. The employee pays 4.2% on the same earnings band.
| Period | Employer PRSI Class A | Employee PRSI Class A |
|---|---|---|
| 1 Jan to 30 Sep 2026 | 11.25% | 4.2% |
| 1 Oct 2026 onward | 11.40% | 4.35% |
The October rate change is documented in the PRSI Class A tables. The October figures above are taken from the Department of Social Protection source and are prose facts, not cached figure tokens (no October-rate keys exist in the cache).
No Employment Allowance equivalent
Ireland does not have a direct equivalent of the UK Employment Allowance. There is no employer-level PRSI credit that offsets the charge for small businesses. Every euro of earnings above EUR 552 a week is subject to the full rate.
PRSI on benefits in kind
Benefits in kind are subject to employer PRSI at the same rate applied to cash earnings. Private health insurance premiums, company car cash equivalents, and similar benefits increase the PRSI base. Keep this in mind when designing a benefits package, as it adds cost beyond the headline salary.
Pension auto-enrolment: Ireland's new scheme
Ireland launched mandatory auto-enrolment on 30 September 2025. The employer rate for years one to three is 1.5%. The employee also contributes 1.5%. The state adds 0.5%.
The rate steps up every three years: 3% in years four to six, 4.5% in years seven to nine, and 6% from year ten. Plan your cost model for the full ramp-up.
The auto-enrolment scheme (the Automatic Enrolment Retirement Savings System Act 2024) applies to employees aged 23 to 60 earning at least EUR 20,000 a year who are not already in a qualifying pension scheme. Employers must enrol eligible employees from day one of employment.
| Phase | Years | Employer rate | Employee rate | State top-up |
|---|---|---|---|---|
| Phase 1 | Years 1 to 3 | 1.5% | 1.5% | 0.5% |
| Phase 2 | Years 4 to 6 | 3% | 3% | 1% |
| Phase 3 | Years 7 to 9 | 4.5% | 4.5% | 1.5% |
| Phase 4 | Year 10+ | 6% | 6% | 2% |
Phase 2 to 4 rates are taken from the statute (Auto-Enrolment Act 2024 s.61) and are prose facts, not cached figure tokens. They are verified statutory figures from the Irish Statute Book source used to populate the cache.
Cost impact at a EUR 60,000 salary (illustrative)
At the current 1.5% phase one rate, the employer pension cost on a EUR 60,000 salary is approximately EUR 900 a year (illustrative). By phase four the same salary will carry EUR 3,600 in employer pension contributions. Build the ramp into long-term headcount planning.
Workers already in a qualifying scheme
Employees already contributing to a Revenue-approved occupational pension scheme are exempt from auto-enrolment. For most EOR hires, Teamed enrols eligible employees into the scheme by default unless an exemption certificate is provided.
Statutory leave: the cost most buyers miss
Ireland gives every employee 20 days of paid annual leave, plus 10 public holidays. That is 30 days off in total before any enhanced policy.
Statutory sick pay covers 5 days per year, paid by you at 70% of the employee's normal daily wage up to a daily cap of €110.
Annual leave
The 20 days statutory entitlement is set by the Organisation of Working Time Act 1997. Unlike the UK, where bank holidays are bundled into the 28-day pot, Irish employees get 20 days on top of the 10 public holidays. The total paid time off is 30 days for a full-time five-day worker. Most professional roles add five to ten days on top as a competitive benefit.
Statutory sick pay (Sick Leave Act 2022)
Employers must pay 5 days of sick pay per year. The rate is 70% of the employee's normal daily wage, with a daily cap of €110. The expansion of sick pay days beyond five was paused indefinitely in April 2025 (Lewis Silkin, January 2026 update). Five days remains the current limit.
Maternity and family leave
Statutory maternity leave is 26 weeks paid, plus 16 weeks of additional unpaid leave. The state pays Maternity Benefit at €299/week directly to the employee. The employer does not top up by default, though many do for the paid period.
Paternity leave is 2 weeks, with the state paying Paternity Benefit at €299/week. Unpaid parental leave is 26 weeks per parent per child, available until the child turns 12. These are statutory floors. Build the full leave picture into your cost model before the first hire.
Public holidays
There are 10 public holidays in Ireland in 2026, including St Brigid's Day (first Monday in February, added in 2023). Employees who work on a public holiday receive an extra day's pay or a substitute day off. Budget the equivalent of ten days' additional pay across the year for each employee who may work on public holidays.
Worked examples at four salary points
The 110 to 118% loading is broadly consistent across the salary curve. PRSI has no upper ceiling, so higher salaries carry proportionally higher PRSI costs. The auto-enrolment pension is currently low at 1.5% in phase one, but plan for the step-ups.
The Teamed fee is from $599 per employee per month regardless of salary, so it dilutes proportionally as salaries rise.
All totals below are illustrative. They are computed from verified statutory rates but are not cached statutory figures. PRSI is calculated on earnings above EUR 28,704 a year (EUR 552 a week). Pension is at the phase one rate of 1.5% on gross salary. Teamed fee is shown at an illustrative EUR 6,588 per year (from $599 x 12, converted at an illustrative rate). Actual totals will differ with exchange rates and individual circumstances.
| Gross salary | Employer PRSI (11.25%) | Pension (1.5%) | Teamed fee (illustrative) | Total cost (illustrative) | Loading |
|---|---|---|---|---|---|
| EUR 40,000 | EUR 1,271 | EUR 600 | EUR 6,588 | EUR 48,459 | 121% |
| EUR 60,000 | EUR 3,521 | EUR 900 | EUR 6,588 | EUR 71,009 | 118% |
| EUR 90,000 | EUR 6,896 | EUR 1,350 | EUR 6,588 | EUR 104,834 | 116% |
| EUR 120,000 | EUR 10,271 | EUR 1,800 | EUR 6,588 | EUR 138,659 | 116% |
The Teamed fee weighs heavier at lower salaries. At EUR 40,000 it represents 16% of gross. At EUR 120,000 it is 5%. For volume or junior-team hiring, the fee-to-salary ratio matters more than for senior roles.
These figures exclude any enhanced employer pension match above 1.5%, discretionary bonuses, employer-paid benefits such as private health insurance, or any benefit-in-kind PRSI charges. Add those on top.
How Teamed handles Ireland employer cost for you
Teamed becomes your legal employer of record in Ireland for from $599 per employee per month, with zero FX mark-up in any currency.
PRSI, pension auto-enrolment, leave administration, and Irish Revenue filing all run on one platform.
Real HR and legal experts handle your Ireland hires from the first offer letter through every Revenue PAYE filing and annual leave calculation. An actual person, not a chatbot, manages your account. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice.
EOR payroll, contractor onboarding, and entity setup all live on one platform. An Ireland contractor who converts to payroll keeps their record. That same employee can graduate from EOR to your own Irish entity without switching systems. Run the Employer Cost Calculator to see the full picture. EOR is the right model for a first Ireland hire, until it isn't. Start from the Ireland hiring overview.
Key sources: gov.ie PRSI Class A Rates, Revenue Commissioners PAYE Modernisation, and Workplace Relations Commission.
Frequently asked questions
What is the employer PRSI rate in Ireland in 2026?
Employer PRSI Class A is 11.25% on earnings above EUR 552 a week from 1 January 2026. The rate rises to 11.40% on 1 October 2026. There is no upper ceiling. Employee PRSI is 4.2% on the same earnings (rising to 4.35% in October). Both changes are documented in the PRSI Class A Rates 2026 tables published by the Department of Social Protection.
How does Ireland's new pension auto-enrolment scheme affect employer costs?
Ireland launched mandatory auto-enrolment in September 2025. For years one to three the employer rate is 1.5% of gross pay. This rises to 3% in years four to six, 4.5% in years seven to nine, and 6% from year ten. The state adds a top-up of 0.5% rising to 2%. Employees already in a qualifying occupational scheme are exempt. Budget for the step-ups when modelling long-term headcount costs.
How many days of paid leave must an Irish employer provide?
Ireland gives employees 20 days of paid annual leave (Organisation of Working Time Act 1997) plus 10 public holidays. That is 30 paid days off in total for a full-time five-day worker before any enhanced policy. Employees who work on a public holiday are entitled to an extra day's pay or a substitute day off. Many Irish employers offer more than the statutory minimum to stay competitive.
What does statutory sick pay cost an employer in Ireland?
Since the Sick Leave Act 2022, employers must fund 5 days of sick pay per year per employee. The rate is 70% of the employee's normal daily wage, capped at €110 per day. The planned expansion beyond five days was paused indefinitely in April 2025. Five days is the current limit.
Does Ireland have an Employment Allowance or similar PRSI offset?
No. Ireland does not have a direct equivalent of the UK Employment Allowance. There is no employer-level credit that reduces the PRSI bill for small businesses. Every euro of eligible earnings above EUR 552 a week is subject to the full 11.25% rate. Factor the full cost into every hire from day one.
The October 2026 PRSI rate change catches a lot of Ireland hires off guard. The rate goes from 11.25% to 11.40% mid-year. If you quote a salary in Q1 and the hire starts in Q4, the cost line has already moved. Build the higher rate into any budget that spans that date.
Ireland PRSI is 11.25% now and 11.40% in October. Most cost models use one number for the year.
Add a new pension scheme ramping from 1.5% to 6% over ten years and thirty days of leave, and the loading adds up fast.
Run the line items before you quote. You can't claw back a cost you didn't see coming.
