Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
EUR € (Euro)
Employer contributions
10.95% employer PRSI (on salaries over €1,650/week)
Minimum wage
€13.50 EUR/hour (National Minimum Wage 2026)
Payment frequency
Monthly
Calendar year (Jan 1 to Dec 31)
Capital
Dublin
Timezone
GMT (UTC+0)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~€5,548 EUR total
/month
For a gross salary of
€5,000 EUR gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
10.95% employer PRSI (on salaries over €1,650/week)
Mandatory extras
Performance Bonus
Monthly admin
Monthly payroll → PAYE/PRSI to Revenue by 23rd → USC calculation
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~€5,548 EUR total
Example gross salary
€5,000 EUR gross/month
~€3,250 EUR net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~€548 EUR employer PRSI
Employer contributions on that salary
Employer contributions
10.95% employer PRSI (on salaries over €1,650/week)
Employee contributions
4% employee PRSI + USC 0.5-8%
Total cost above gross
~10.95% employer PRSI above gross
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~€4,083 EUR
Per month
Dublin
€5,000 - €8,000 EUR
~30%
Cork
€3,800 - €5,500 EUR
~10%
Monthly gross. National average salary per year:
~€49,000 EUR
Minimum wage
€13.50 EUR/hour (National Minimum Wage 2026)
Paid:
Hourly
Extra pay
Performance Bonus
Discretionary, common in tech and financial services
Varies
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
20% (up to €44,000) → 40% (above €44,000) + USC + PRSI
Tax year:
Calendar year (Jan 1 to Dec 31)
Filing calendar
Monthly via PAYE Modernisation
Social security payments
October 31 (Form 11) / via PAYE Anytime
Income tax
By January 31
Employee tax certificate
P60 (replaced by myAccount online)
October 31
Annual return
Income Tax Return (Form 11/12)
Late payment penalties
Late PAYE: interest at 8% per annum; late PRSI: penalties + interest
Who collects what
Revenue Commissioners
Income tax, PAYE, VAT
Department of Social Protection
PRSI and social welfare
Workplace Relations Commission
Employment rights enforcement
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Annual Leave
20 days
Public holidays
10 public holidays
Sick leave
Illness Benefit
Employer: first 3 days unpaid; Revenue: €237.50/week Illness Benefit from day 4
Maternity leave
26 weeks
Parent's Benefit + Maternity Benefit ~€274/week
The contracts you can use, and what ending an employment relationship costs.
Permanent
Contract of Employment (Indefinite)
Fixed term
Fixed Term Contract
Independent contractor
Self-Employed / Contractor
Collective agreements
Sectoral Employment Order (SEO)
Ending employment
Redundancy Payment
How it is calculated
2 weeks per year + 1 bonus week (statutory)
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Contractor Misclassification (Code of Practice on Determining Employment Status)
Risk Level: HIGH
Revenue Ireland and the Department of Social Protection apply a strict 5-part test to determine employment vs. contractor status. Engaging workers as self-employed when they lack genuine business independence triggers full PAYE, PRSI, and USC reclassification with interest at 8% per annum.
USC Surcharge Band Errors
Risk Level: MEDIUM
Ireland's Universal Social Charge (USC) applies at 4 different rates depending on annual income. Incorrectly applying the standard rates to medical card holders (who pay only 2%) or failing to update bands mid-year causes Revenue audits.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.