Key takeaway
How to hire your first employee in Ireland: employer PAYE registration, contracts, the €12.70 minimum wage, and Revenue obligations.
Taking on your first employee is a major milestone for any small business in Ireland, but it comes with legal and administrative obligations you need to get right from day one, whether you're hiring in Dublin, Galway, or remotely across the country.
Do I need to register as an employer with Revenue?
Yes. Before your first employee starts, you must register as an employer for PAYE (Pay As You Earn) with Revenue, typically done through ROS or via your accountant. This registration allows you to operate payroll, deduct income tax, PRSI (Pay Related Social Insurance), and USC (Universal Social Charge) from wages, and remit these to Revenue on the employee's behalf. You'll also need to register the employee's details before their first pay day using Revenue's PAYE system, which links directly to their tax record.
What is the current minimum wage in Ireland?
The national minimum wage is €12.70 per hour for experienced adult employees, though this rate is reviewed annually by the Low Pay Commission and typically rises each January, so always check the current rate on citizensinformation.ie before setting pay. Reduced sub-minimum rates apply to some employees under 18 and those in the first two years of employment aged 18-19, at a percentage of the full rate.
What must be in a written employment contract?
Irish law requires you to provide a written statement of core terms within 5 days of an employee starting, covering pay, hours, job title and start date, with a fuller written contract required within 2 months. This should cover pay frequency, working hours, holiday entitlement (minimum 4 working weeks per year for full-time staff), notice periods, and place of work. Missing this deadline can expose you to claims at the Workplace Relations Commission (WRC), so use a template reviewed by an employment solicitor or IBEC/ISME resource rather than drafting from scratch.
What payroll software should I use?
Most small businesses in Ireland use payroll software that integrates directly with Revenue's PAYE Modernisation system, which requires real-time reporting of pay and deductions on or before each pay date. Popular options include BrightPay, Sage Payroll, Thesaurus, and Big Red Book, most costing €300–€600 per year for a small business. These automate PRSI, USC and tax calculations and file directly with Revenue, reducing the risk of compliance errors.
What other employer obligations should I know about?
Beyond payroll, you're required to provide Employers' Liability insurance (not legally mandatory but essential in practice, and often required by clients or landlords), register for Workplace Relations Commission compliance on matters like working time and health and safety, and enrol employees in a pension access scheme if you don't already offer one, under the auto-enrolment retirement savings system being phased in. Keeping accurate records of hours worked, pay, and leave is a legal requirement, not just good practice.
Frequently Asked Questions
How do I register as an employer in Ireland?
Register for employer PAYE through Revenue's ROS system before your first employee's start date. You'll need your business tax registration details and the new employee's PPS number.
What is the minimum wage in Ireland right now?
€12.70 per hour for experienced adult employees, reviewed annually and typically increasing each January. Reduced rates apply for under-18s and those in their first two years of employment.
How much annual leave must I give an employee in Ireland?
A minimum of 4 working weeks (20 days for a 5-day week) for full-time employees, calculated pro-rata for part-time staff based on hours worked.
Do I need an employment contract for a part-time employee in Ireland?
Yes, the same written statement of core terms (within 5 days) and full contract (within 2 months) requirements apply regardless of whether the employee is full-time or part-time.
What taxes do I need to deduct from an employee's wages in Ireland?
Income tax (PAYE), PRSI, and USC must be deducted at source and reported to Revenue in real time via PAYE Modernisation, typically handled through payroll software like BrightPay or Sage Payroll.
General guidance only. Always verify with official sources — gov.ie, citizensinformation.ie, hse.ie.