Hiring in Ireland: costs, rules and the best EOR providers

Ireland regulates employment agencies. An agency with premises in the State must obtain a licence under the employment-agency regime. Identify the actual employing entity and whether the arrangement is agency work; the EOR label does not create an exemption.

There is no required sequence. An EOR can support initial eligible hires; an Irish branch is the US company operating through a registered Irish establishment; an Irish limited company is a separate incorporated business.

Choose the structure around the planned activity, liability, tax and management needs. Compare continuing EOR fees with registration, accounts, payroll and internal HR capacity before transferring employment; a headcount rule alone cannot make that decision.

The Irish payroll employer deducts PAYE income tax, USC and employee PRSI where due, then pays employer PRSI separately. It uses the employee’s Revenue Payroll Notification and submits payroll information to Revenue on or before payday.

An EOR invoice should distinguish the gross salary, employer charges and service fee. Employee deductions reduce net pay; they are not an extra employer cost to add again.

For ordinary Class A employment, employer PRSI is 9% on weekly earnings up to €552 and 11.25% above that threshold through 30 September 2026.

From 1 October 2026, those rates rise to 9.15% and 11.40%. The applicable rate applies to the relevant earnings, not just the slice over the threshold. Confirm the employee’s PRSI class before using these rates in a quote.

An agency can be the permit employer under the Employment Permits Act 2024, so an Irish EOR is not automatically excluded from supporting a Critical Skills Employment Permit.

The actual employer, role, remuneration and other permit conditions still have to qualify. Ask the provider to confirm the employing entity and route in writing. Older guidance saying agencies can never apply predates the revised employer definition and should not decide a new application.

In 2026, eligible employees have five statutory paid sick days, with certified sick pay at 70% of normal daily earnings capped at €110 a day, after 13 weeks’ service.

Statutory annual leave is generally up to four working weeks, calculated under the working-time rules. Agency equal-treatment rules or a better contract can increase entitlements. The earlier plan for ten sick days in 2026 is not the current five-day entitlement.

An EOR arrangement can fall within the Protection of Employees (Temporary Agency Work) Act 2012 when the provider employs someone assigned to work under another business’s direction and supervision.

The legal facts matter, not the EOR label. Covered workers receive equal treatment in specified basic working and employment conditions. Give the provider accurate comparator pay, working-time and leave information before it prepares the offer.

With an EOR, its employing entity registers the employment through Revenue and requests the employee’s Revenue Payroll Notification. The worker provides a PPS number and must register a first Irish job where required.

If you employ directly instead, a non-resident company can register for Irish tax using the relevant Revenue process; incorporating a subsidiary is not the same step as registering for payroll.

The EOR must give written core terms within five days and the remaining statutory written particulars within one month. These cover the employer and employee, role, work location, start date, pay and expected hours, with further terms on leave, notice, benefits and applicable arrangements.

The actual employing entity must be identifiable. A commercial order form between you and the provider is not the employee’s statutory statement.

Yes, the EOR as payroll employer must operate MyFutureFund for employees enrolled in the scheme, unless that employment qualifies for an exemption.

In 2026, employer and employee each contribute 1.5% and the State adds 0.5%, within the scheme’s earnings limit. Automatic enrolment generally covers ages 23–60 and earnings above €20,000 without a qualifying payroll pension. Confirm the provider’s pension exemption or contribution line; simply offering an optional pension is not enough.