An employer of record in Ireland is a local entity that legally employs a worker on your behalf, runs Irish payroll through the PAYE system, pays employer PRSI on top of salary and carries the employer obligations, including the statutory minimum notice ladder that runs from one week to eight with length of service. Ireland's mix of English-language administration, EU membership and a deep tech and pharma talent pool makes it one of the most requested EOR countries, and the cost mechanics below are what a quote should reflect.
What an EOR does in Ireland
The EOR issues an employment contract that meets Irish statutory minimums, registers the employment for PAYE, withholds income tax, USC and employee PRSI at source, remits employer PRSI on top of gross pay and administers leave, sick pay and termination. Irish employment rights accrue with service, so the EOR also has to track tenure correctly: notice entitlements, unfair dismissal protection and redundancy rights all key off continuous service dates. For a foreign buyer, the value is a compliant first hire in days without forming an Irish company, registering as an employer and building a payroll, and a priced, lawful exit path if the role does not work out.
Minimum notice under the 1973-2015 Acts
The Minimum Notice and Terms of Employment Acts set the statutory floor once an employee has at least thirteen weeks of service: one week of notice up to two years of service, two weeks from two to five years, four weeks from five to ten years, six weeks from ten to fifteen years and eight weeks beyond fifteen years. Contracts may provide longer notice than the statute but cannot go below it. Dismissal on redundancy grounds is recognised as fair where a genuine redundancy exists, such as closure or restructuring, but the employer carries the burden of demonstrating it, which under an EOR arrangement means the EOR's process has to be followed even when the commercial decision is yours.
What PRSI adds to the cost of a hire
Employer PRSI for Class A1, which covers most employed persons, is 11.25% of salary until 30 September 2026, rising to 11.4% from 1 October 2026; the employee's own contribution is 4.2%, rising to 4.35% on the same date. The scheduled 0.1% step is part of a series of gradual PRSI increases, so multi-year budgets should assume the rate continues to move. On top of PRSI, a competent quote itemises gross salary, employer PRSI and the EOR fee separately; treat a single blended number with suspicion because it hides both the statutory cost and the margin, and makes it impossible to compare providers like for like.
Entity or EOR in Ireland
Forming an Irish company is straightforward by international standards, and many buyers eventually do it: employer on-costs are moderate and the administrative system is in English. The EOR case is strongest for the first few hires, for speed, and for buyers unsure whether the Irish operation will persist, because it converts a set of registrations and ongoing filings into one monthly invoice. Once headcount reaches the point where fees exceed the cost of running payroll under your own entity, or when the team needs equity, regulated roles or local contracting from the operating company, the balance tips. Contracts and statute control; nothing on this page is legal or tax advice.
Questions people ask about employer of record ireland
What is the minimum notice for an Irish employee?
With at least thirteen weeks of service: one week up to two years of service, two weeks from two to five years, four weeks from five to ten, six weeks from ten to fifteen and eight weeks beyond fifteen years. Contracts can improve on the statutory floor but not reduce it.
What does employer PRSI cost in Ireland?
For Class A1, 11.25% of salary until 30 September 2026 and 11.4% from 1 October 2026, on top of gross pay. The employee contributes 4.2%, rising to 4.35% on the same date.
Does an EOR hire get Irish statutory rights?
Yes. The EOR is the legal employer and the full Irish statutory framework applies: minimum notice, leave entitlements and service-based protections all accrue exactly as with any Irish employer.
When should a company switch from EOR to its own Irish entity?
When monthly EOR fees across the team exceed the cost of running your own registrations and payroll, or when equity, regulated activity or customer contracting requires employment by the operating company itself.