Ireland HR Glossary

Since 1 January 2019, Ireland operates real-time PAYE reporting (PAYE Modernisation): employers must submit a payroll submission to Revenue on or before each pay date. Submissions are made via ROS (Revenue Online Service) or payroll software. Employer PRSI rates were 11.15% in 2025. Late payroll submissions incur surcharges, and significant underpayments can result in Revenue audits.

Most employees pay Class A PRSI at 4.1% on gross earnings (from 2025 budget increase). Employers pay 11.15% on all employee earnings. PRSI contributions are aggregated throughout a worker's career to determine entitlement to contributory State Pension and other benefit payments. The threshold for PRSI exemption is €352/week. PRSI is collected alongside PAYE via the Revenue payroll submission.

In 2025 the USC rates are 0.5% on the first €12,012; 2% from €12,013 to €25,760; and 4% from €25,761 to €70,044; with a rate of 8% above €70,044. Employees earning €13,000 or less per year are exempt from USC. USC applies to all workers resident in Ireland (including non-EU workers). Incorrect USC calculation leads to Revenue underpayment notices.

Employers must retrieve RPNs via ROS or through payroll software before running each payroll to ensure deductions reflect any changes Revenue has applied (e.g., removal of credits, updated PAYE exclusion orders). If an RPN cannot be retrieved for a new employee, the employer must use an emergency tax basis, which deducts tax at 40% on all income. Failure to apply the correct RPN leads to PAYE under-deduction and liability for the employer.

Employers must keep detailed records of working hours for each employee for 3 years. The 11-hour daily rest requirement and 24-hour weekly rest entitlement are mandatory and cannot be waived by agreement. Employees who work more than 4.5 hours are entitled to a 15-minute rest break; employees who work more than 6 hours are entitled to a 30-minute break. Breach is adjudicated by the WRC.

The 10 public holidays are: 1 Jan, 1 Feb (St Brigid's Day, new since 2023), 17 Mar, Easter Monday, first Monday in May, first Monday in June, first Monday in August, last Monday in October, 25 Dec, and 26 Dec. Part-time employees working at least 40 hours in the 5 weeks before the holiday receive a proportionate entitlement. Employers cannot substitute annual leave for public holiday entitlement.

The '8% formula' primarily benefits casual and part-time workers with irregular hours. Leave year runs from 1 April to 31 March unless a different year is agreed. Annual leave pay must be paid in advance of the leave at the rate of the employee's normal weekly pay. Unused leave cannot be extinguished; employers cannot pay in lieu of untaken leave except on termination.

Employees can submit complaints to the WRC within 6 months of the alleged contravention (extendable to 12 months for reasonable cause). WRC Adjudication Officers can award compensation of up to 2 years' pay for unfair dismissal. Decisions can be appealed to the Labour Court. Employers who ignore WRC enforcement orders can be pursued in the Circuit Court. The WRC also conducts unannounced workplace inspections.