An HR checklist for new Irish employers
Reviewed by Mellow Editorial Team, HR & payroll content team
Hiring your first employee in Ireland means registering with Revenue, running payroll correctly from day one, and meeting a set of statutory obligations — all before the person sets foot in the door.
Register as an employer before you pay anyone
You must register as an employer with Revenue before you make your first payroll payment. Do this through ROS (Revenue Online Service). Once registered, you will be able to submit real-time payroll reports and remit PRSI and income tax to Revenue.
If your new hire does not have a PPSN, they need to obtain one from the Department of Social Protection. You cannot process their payroll correctly without it. Once they provide it, look up their tax credits and cut-off point on ROS so you are deducting the right amounts from the start.
Set up payroll and understand what you are deducting
Every employee on Irish payroll has three main deductions:
Income tax. Ireland uses a two-rate system with tax credits, not a personal allowance. The standard rate is 20% up to roughly €44,000 for a single person; earnings above that are taxed at 40%. Tax credits reduce the actual liability — so never confuse the gross rate with what an employee actually pays.
USC (Universal Social Charge). This is banded: 0.5%, 2%, 3%, and 8% at higher earnings. Most employees pay across multiple bands depending on their annual income.
PRSI. Most employees fall under Class A. The employee contributes approximately 4.1% of gross pay; you as the employer pay approximately 11.15% on top. Employer PRSI is a real cost to budget for — it adds meaningfully to the total employment cost above the gross salary you have agreed.
You must submit a payroll submission to Revenue on or before each payday. There is no monthly catch-up option; late or missing submissions create compliance problems. If you are using payroll software, make sure it is Revenue-compatible and set up correctly before your first pay run.
Issue a written contract and statement of core terms
Under the Employment (Miscellaneous Provisions) Act 2018, you must give every new employee a written statement of five core terms within five days of them starting. These include the full names of employer and employee, the address of the employer, the expected duration of the contract, the rate or method of pay, and the expected normal hours of work.
A fuller written contract should follow within one month. This is not just good practice — it is a legal requirement under the Terms of Employment (Information) Acts. A contract should cover notice periods, probation terms, leave entitlements, place of work, and any confidentiality or IP provisions relevant to your business.
Know your statutory entitlements from day one
Employees accrue statutory entitlements from their first day. The main ones to have in place:
Annual leave. The statutory minimum is four working weeks per year. Part-time employees accrue leave proportionally.
Public holidays. Employees are entitled to benefit from public holidays — either a paid day off, an additional day's pay, or an additional day of annual leave.
Sick leave. Statutory sick pay now applies from day one of employment. Employees are entitled to a set number of paid sick days per year at a percentage of normal daily wages, subject to medical certification.
Maternity, paternity and parent's leave. Understand the statutory entitlements for each and how they interact with your payroll. Some are paid via the Department of Social Protection; others require you to manage the process.
Pension auto-enrolment. From 2026, Ireland's auto-enrolment scheme — My Future Fund — is being introduced for eligible employees. If you are hiring now, you need to understand which employees will be enrolled and what contribution rates will apply to you as an employer, so there are no surprises.
Keep records and stay across ongoing obligations
Good record-keeping is not optional. You are required to retain payroll records, contracts, and time and attendance records. Revenue can audit payroll submissions going back several years, and the Workplace Relations Commission (WRC) can inspect employment records.
Beyond the initial setup, ongoing HR compliance means staying current with any changes to minimum wage rates, PRSI thresholds, and leave legislation — all of which can change at Budget time each autumn.
A few practical habits that reduce risk: keep a personnel file for each employee from day one, document any disciplinary or performance conversations in writing, and make sure your contracts are reviewed if your business model or the employee's role changes materially. A contract written three years ago may not reflect current law or current working arrangements.
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