Social Security
Ireland has a comprehensive social welfare/security system, funded through general government revenues and employer/employee contributions (i.e. Pay Related Social Insurance (“PRSI”)). The system provides a range of social insurance payments/benefits including the State pension, maternity leave benefit, adoptive leave benefit, paternity leave benefit, etc., subject to the employee having sufficient PRSI contributions.
Other payments available from the State include means-tested payments (which are designed for people who do not have sufficient PRSI contributions to qualify for the equivalent social-insurance based payment e.g. Jobseeker’s Allowance) and universal payments (e.g. Child Benefit) which are paid regardless of a person’s income or social insurance record.
Employers are obliged to deduct income tax, Universal Social Charge and PRSI at source from an employee’s wages and remit such deductions to the Revenue Commissioners of Ireland under the Pay As You Earn (“PAYE”) system.
Healthcare and Insurances
While many employers in Ireland put in place employers’ liability insurance to protect against liability for injury, illness, disease or death of any employee, employers’ liability insurance is not compulsory/mandated by law.
Employers in Ireland can and do provide a range of employee benefits such as life insurance, private health insurance, pensions, permanent health insurance, sick pay, a company car, car allowance, share option / incentive schemes, etc. However, there is no legal obligation to provide any such benefits (with the exception of statutory sick pay and pensions, as below).
Required Leave
Holidays and Annual Leave
In a leave year, an employee has a statutory minimum (paid) annual leave entitlement of:
- 4 working weeks where he or she works at least 1,365 hours (unless it is a leave year in which he/she changes employment);
- 1/3 of a working week for each month in which he/she works at least 117 hours; or
- 8% of the hours worked, subject to a maximum of 4 working weeks.
The employee shall be entitled to use whichever method gives them the greater entitlement. Employers can and do often provide more than the statutory minimum to employees.
In addition, employees are entitled to paid leave days for statutory public / bank holidays. There are currently 10 public holidays in Ireland and, while Good Friday is not a public holiday, many employers treat it as such.
Where a part-time employee fulfils the criteria above and typically works that day then they are entitled to an additional day’s pay. If the part-time employee does not usually work that day, then the employee should receive 1/5th of their weekly pay.
Maternity / Paternity Leave
Female employees, and transgender men who obtain a gender recognition certificate and subsequently give birth, are entitled to take maternity leave of up to 42 weeks (26 weeks ‘ordinary maternity leave’ and 16 weeks ‘additional maternity leave’) provided the employer is given at least four weeks’ notice of the commencement of such leave. The maternity leave must include at least two weeks leave before the date of the birth and at least four weeks leave after the birth. An employer is not obliged to pay the employee during maternity leave, but the employee may qualify for maternity benefit from the State during ordinary maternity leave only. While an employee is also entitled to take up to 16 weeks’ additional maternity leave, no State maternity benefit is available.
Employees who are fathers, or partners in same sex relationships who have newly adopted a child, are statutorily entitled to take 2 consecutive weeks’ unpaid paternity leave to be taken within 26 weeks of the child’s birth (or date of adoption placement). There is no obligation on an employer to pay an employee on paternity leave. An employee may be entitled to a social welfare benefit from the State, provided they have sufficient PRSI contributions.
Sickness Leave
Since 1 January 2024, employees who have at least 13 continuous weeks’ service with their employer are entitled to up to 5 days statutory sick leave per calendar year. Statutory sick leave is paid at a rate of 70% of normal pay, subject to a daily maximum of €110. A medical certificate from a registered medical practitioner is required for each day of sick leave. The number of statutory sick leave days is expected to increase to seven days in 2025 and to 10 days in 2026.
As employers are not prohibited from having more generous sick pay schemes than the statutory minimum requirements above, employers can and do often supplement statutory sick pay with company sick pay for a specified period (which varies depending on the company, industry/sector, etc.).
Disability Leave
While there is no specific concept of ‘disability leave’ in Irish law, employees who have a disability may take sick leave and avail of SSP and/or company sick pay (as above).
Any Other Required or Typically Provided Leave(s)
Parental Leave: Each parent is entitled to 26 weeks’ parental leave in respect of a natural child, adopted child or child in respect of who the employee acts in loco parentis. This leave must be taken before the child reaches 12 years of age. This upper age limit can be extended in certain circumstances, where an adopted child is involved. In the case of a child with a disability, leave may be taken up to the child reaching 16 years of age. An employee must generally have at least 12 months’ continuous service with the employer before being entitled to this leave (though there are certain limited exceptions). There is no social welfare benefit available from the State for this type of leave.
Parent’s Leave: Employees who are a ‘relevant parent’ (e.g., a parent or adopting parent of a child or a spouse, civil partner or cohabitant of the parent of the child or a spouse or civil partner of the adopting parent of the child) are entitled to 9 weeks’ parent’s leave (where the child is born or adopted on or after 1 August 2024) or has a child under 2 on 1 August 2024 or has an adopted child who has been placed with the family less than 2 years on 1 August 2024. . Parent’s leave must be taken within the first 2 years of the child’s birth or adoption. An employee is not entitled to be paid by an employer during parent’s leave. An employee may be entitled to a social welfare benefit from the State, provided they have sufficient PRSI contributions.
Carer’s Leave: Employees (with at least 12 months’ continuous service with an employer) are entitled to leave for a period of 104 weeks in order to care for someone in need of full-time care and attention. This leave may also, on one occasion only, apply to extend their leave for a further 104 weeks where two beneficiaries of care are residing together. Carers are not entitled to be paid by their employer while on carer’s leave, but a social welfare payment is available.
Adoptive Leave: An adopting parent or sole adopter is entitled to 24 weeks’ adoptive leave. Employees availing of this leave are not entitled to be paid by the employer but may be entitled to receive social welfare payments provided they have sufficient PRSI contributions. Employees are also entitled to additional unpaid adoptive leave for a further 16 weeks with no social welfare payments payable.
Force Majeure: An employee may leave work when his or her immediate presence is indispensable due to the injury or illness of certain close relatives, including a person with whom the employee is in a relationship of domestic dependency. A person residing with the employee is taken to be in a relationship of domestic dependency with the employee if, in the event of injury or illness, one reasonably relies on the other to make arrangements for the provision of care. This includes same sex partners. This leave is subject to a maximum of 3 days in any 1 year or 5 days in any 3-year period and is paid by the employer.
Health and Safety Leave: Female employees who are pregnant or breastfeeding may be entitled to health and safety leave in certain limited circumstances (i.e. where a risk in the workplace is identified in a risk assessment that cannot be removed and there is no suitable alternative employment available). An employer is obliged to pay the employee normal salary for the first 21 days of the leave with a social welfare benefit being available for the remainder of the leave.
Jury Service Leave: Employees must be given paid time off for jury service and without loss of any other employment rights.
Compassionate/Bereavement Leave: While there is no statutory entitlement to this leave, employers in Ireland typically permit employees to take this type of leave.
Career Break/Study Leave: While there is no statutory entitlement to this leave, employers in Ireland can and do facilitate career breaks / study leave and put in place parameters around this either on a case-by-case basis or by way of a policy.
Leave for Medical Care Purposes: This is a new form of leave was introduced on 3 July 2023. Employees are able to take up to 5 days unpaid leave (in any period of 12 consecutive months) for medical care purposes to provide care or support to a broad range of specified persons (e.g. a child, spouse/civil partner, cohabitant, parent or grandparent, brother or sister or a person who resides in the same household as the employee, where any of those persons is in need of significant care or support for a serious medical reason). There is no service requirement needed to avail of this leave.
Domestic Violence Leave: Employees may take up to 5 days paid leave (in any period of 12 consecutive months) where they, or a ‘relevant person’ (i.e. the employee’s spouse, civil partner, cohabitant, or a person with whom they are in an intimate relationship, a minor child or other dependent person), have experienced, or are experiencing, domestic violence. The purpose of the leave is to enable the person to take certain actions or avail of relevant services/assistance regarding the domestic violence. There is no service requirement needed to avail of this leave. An employee is entitled to be paid their normal salary by their employer while on statutory domestic violence leave. Pensions: Mandatory and Typically Provided
There is currently no legal obligation on an employer in Ireland to provide an occupational pension scheme for employees. Where an employer does not operate a pension scheme or where employees will not have access to such a scheme within six months of joining service, an employer must facilitate access to a Personal Retirement Savings Account (“PRSA”). There is no obligation on an employer to make contributions to a PRSA.
The Automatic Enrolment Retirement Savings System Act 2024 was enacted in July 2024. All employees who are not already in an occupational pension scheme, aged between 23-60 and earning over €20,000 will be automatically enrolled to a pension scheme. Contribution rates will be introduced gradually over the course of a 10-year period beginning in 2025, with the employer and employee contributions starting at 1.5% increasing in 3-year intervals by 1.5%. Contributions to the pensions auto-enrolment scheme will begin in January 2025. The scheme will operate on an “opt-out” rather than an “opt-in” basis.
Pensions: Mandatory and Typically Provided
There is no legal obligation on an employer in Ireland to provide an occupational pension scheme for employees. Where an employer does not operate a pension scheme or where employees will not have access to such a scheme within six months of joining service, an employer must facilitate access to a Personal Retirement Savings Account (“PRSA”). There is no obligation on an employer to make contributions to a PRSA.
At the time of writing, there is currently no pensions auto-enrolment scheme in Ireland, but the Irish government is proposing to introduce such a scheme in 2024. The General Scheme of the Automatic Enrolment Retirement Savings Systems Bill 2022 (which is the draft legislation) outlines how it is intended that the new scheme will operate. At the time of writing, it is proposed that, where an employee does not have an occupational pension, he/she will be automatically enrolled in the new scheme, with options to leave the scheme or ‘opt out’ under certain conditions. This is, however, subject to change as the draft legislation goes through the legislative process in Ireland.
Any Other Required or Typically Provided Benefits
Employers in Ireland can and do provide a range of employee benefits such as life insurance, private health insurance, pensions, permanent health insurance, sick pay, a company car, car allowance, share option / incentive schemes, etc. However, there is no legal obligation to provide any such benefits (with the exception of statutory sick pay and pensions, as noted above).
