Article
4 min read
Employer Costs for an Employee in Ireland (2026 Guide)
Employer of record
Author
Jemima Owen-Jones
Last Update
February 04, 2026
Quick answer: What is the total employer cost for a $100,000 salary in Ireland?
For an employee earning $100,000 USD annually in Ireland, employers can expect mandatory employer costs of approximately $11,150 USD per year, bringing total compensation costs to $111,150 USD.
Estimated total employer cost (Ireland): ~11.2% on top of gross salary (example estimate).
But even when two employees earn the same salary, the total employer cost varies by country due to statutory contributions, payroll rules, and mandatory insurance requirements.
This guide provides a ballpark estimate of the mandatory employer cost of hiring an employee in Ireland, using an example salary of $100,000 USD per year.
What’s included in this estimate?
This estimate includes mandatory employer-side statutory costs that may apply when hiring an employee in Ireland, such as:
- Employer social security contributions via Pay Related Social Insurance (PRSI)
What’s not included in this estimate?
This estimate generally does not include additional costs such as:
- Paid annual leave (vacation)
- Sick pay
- Private health insurance
- Employer-provided benefits or allowances
- Bonuses, equity, or commissions
- Equipment and onboarding expenses
- Costs that vary by industry or employee category
Why employer costs vary in Ireland (and globally)
Employer costs can differ depending on:
- Income thresholds and contribution caps
- Employee classification and contract type
- Industry-specific requirements
- Changes in regulation year to year
- Currency exchange rate fluctuations (if you pay in a different base currency)
Estimated employer cost breakdown for Ireland
Below is an estimated breakdown of mandatory employer costs for hiring an employee in Ireland earning $100,000 USD/year.
Example salary used in this estimate
- Annual gross salary: $100,000 USD
- Annual gross salary (approx.): €97,069 EUR
Employer mandatory costs (estimated)
| Employer Cost Category | Estimated Annual Cost (EUR) | Estimated Annual Cost (USD) | Notes |
|---|---|---|---|
| Social Security (PRSI) | €10,823 | $11,150 | Employer contribution to PRSI social welfare programs |
| Total Estimated Employer Costs | €10,823 | $11,150 | Total mandatory employer cost estimate |
Total compensation cost (salary + mandatory employer costs)
| Total | EUR | USD |
|---|---|---|
| Gross Salary | €97,069 | $100,000 |
| Mandatory Employer Costs | €10,823 | $11,150 |
| Total Compensation Cost | €107,892 | $111,150 |
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FAQs
How much does an employee cost beyond salary in Ireland?
Beyond gross salary, employer payroll costs in Ireland typically include PRSI social security contributions and other compliance-related payroll requirements. Total costs can vary based on the employee’s earnings, contract type, and the payroll setup used.
Do employers pay pension contributions in Ireland?
Many employers offer a workplace pension scheme as part of a competitive benefits package, especially for full time roles. Pension contributions can increase total employer cost beyond salary, depending on the pension structure and employer policy.
Is there automatic enrolment in Ireland?
Yes. Ireland is introducing automatic enrolment for eligible employees, which will require employers to support workplace retirement savings through an auto enrolment pension system. This means employers will be required to contribute once the system applies to the employee and employer.
Who counts as eligible employees for automatic enrolment?
Eligible employees are typically defined based on factors like age and earnings thresholds. Once an employee qualifies, employers may need to enrol them into the pension scheme and make required contributions.
What is the minimum wage in Ireland and does it affect employer costs?
Ireland has a statutory minimum wage, which employers must meet as a legal baseline for pay. This affects hiring budgets for hourly and entry-level roles, and minimum wage changes can increase payroll costs over time.
Do employers pay income tax for employees in Ireland?
Employers generally withhold and remit income tax through payroll, but the income tax itself is paid by the employee. Accurate withholding and reporting are key parts of running a compliant payroll system.
How do payroll costs and the payroll system work in Ireland?
Ireland’s payroll system requires employers to calculate wages, apply statutory deductions, and pay employer-side contributions such as PRSI. Payroll costs can increase depending on salary level, reporting obligations, and benefits like pension contributions.
Will anything change in January 2026?
Some employer costs and compliance obligations can change over time due to updated thresholds, contribution rules, or new requirements. If changes apply in January 2026, employers should review payroll setup and budgeting to ensure continued compliance.
Jemima is a nomadic writer, journalist, and digital marketer with a decade of experience crafting compelling B2B content for a global audience. She is a strong advocate for equal opportunities and is dedicated to shaping the future of work. At Deel, she specializes in thought-leadership content covering global mobility, cross-border compliance, and workplace culture topics.
