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Employee benefits in Ireland
Get to know the landscape of employee benefits in Ireland, including healthcare and retirement planning.
Quick Overview
Notable:
- Private medical Insurance remains one of the most popular benefits, whether paid partially or in full by the employer. Premiums paid by the employer on behalf of the employee are subject to taxation as a Benefit-In-Kind.
Statutory Benefits include:
- PRSI is the social benefits fund which supplies sickness, disability, accident, unemployment, retirement benefits, welfare allowances and more
- Employer contribution: 11.05% where income is over €410/wk; 8.8% where income is below this
- Employee contribution: 4% on earnings above €424/wk; 0% on earnings below €352; reduced contribution on earnings between €352 - €424
- National Childcare Scheme
Employers typically provide:
- Private Medical Insurance
- Defined Contribution retirement and death benefits plan
- Cycle to work scheme
Other common benefits include:
- Commuter benefit
- Learning and development support
Benefits Summary
Benefits coverage standards can differ greatly across countries. The table below shows what statutory, market standard and great coverage look like for each benefit.
- The National Childcare Scheme supports families with early childcare costs.
- There are two types of subsidies available:
- A universal subsidy which provides €1.40 per hour for a maximum of 45 hours per week
- An income-assessed subsidy for which rates vary depending on each family’s individual circumstances. Parents can choose to apply for whichever subsidy will provide the greatest benefit.
- Supplemental childcare benefits are not common.
- Supplemental childcare benefits are not common.
- No statutory requirement
- Commuter benefit
- Cycle to work scheme
- Professional subscriptions
- NA
- Residents in Ireland are entitled to publicly funded healthcare.
- There is no employer/employee contribution requirement.
- 50+% of companies provide employer paid private medical insurance.
- Private insurance covers treatment in a private hospital or as a private patient in a public hospital.
- 15+% of employers offer supplemental dental coverage.
- Vision is sometimes included in Private Medical Coverage
- Excellent cover includes an on-site or subsidised gym, strong mental health services and counselling, healthy food options, retail discounts, fertility support, services and other wellness activities.
- 10% of employers pay for membership to sports/social clubs
- €50 - €250 / month wellbeing budget
- Statutory death benefits cover is provided for by the PRSI, to which employees and employers both contribute
- (50+%) employers offer supplemental Defined Contribution (DC) death benefits. These are fully employer paid at a contribution of 1% of employee salary.
- Typical cover for DC plans is a tax free lump sum of 4x salary.
- Some DC plans offer a higher tax free lump sum of as much as 10x salary.
- Statutory retirement is provided for by the PRSI, to which employees and employers both contribute.
- The majority of employers (50+%) offer supplemental Defined Contribution (DC) plans.
- Median employer contribution: 7%
- Median employee contribution: 5%
- More highly competitive DC plans include higher employer contributions of up to 10%
- No statutory requirement
- Office snacks
- Company events and socials, happy hours
- Volunteering and community engagement initiatives
- Daily lunch, weekly happy hours.
- £50 - £100 / month meal budget
- £50-100 / month social budgets every quarter
- No statutory requirement
- Option to buy/sell holiday (but one cannot sell below the minimum statutory of 20 days)
- Car benefits are common
- NA
- No statutory requirement
- Professional subscriptions that are essential to an employee’s duties are tax exempt.
- Partial reimbursement of tuition fees or an annual learning and development budget of €300 - €1,000 / year
- Reimbursement of tuition fees, or an annual learning and development budget of €1,000 - €3000+ / year
- Statutory disability and accident cover are provided for by the PRSI, to which employees and employers both contribute
- Many companies provide supplemental disability and accident cover.
- Plans typically top up state benefits until income reaches 50% - 75% of pre-disability salary.
- Employer pays the full amount, which is typically 1% of salary
- An excellent supplementary plan would top the state benefits up to 75% of pre-disability salary.
Policies Summary
Policy coverage standards can differ greatly across countries. The table below shows what statutory, market standard and great policy coverage look like for each benefit.
- No statutory requirement
- NA
- Personal Development Leave Sabbaticals
- Volunteering days
- 24 weeks paid €250/week
- 16 weeks unpaid
- (40 weeks total, paid for by state)
- Many employers (40+%) provide additional paternity support
- This can be up to full pay for 42 weeks
- 42 weeks full pay
- 70% of normal wages for 5 days
- 100% of normal wages for 2 weeks
- 100% of normal wages for 2 weeks
- 2 weeks paid €250/week by the state
- Many employers (40+%) provide additional paternity support
- This can be up to full pay for 42 weeks
- 42 weeks full pay
- No statutory requirement
- 1 day/week
- Fully Hybrid/Remote and the option of a “Work from Anywhere” scheme in line with tax-residency requirements
- 26 weeks paid €250/week
- 16 weeks unpaid
- (42 weeks total, paid for by state)
- Many employers (40+%) provide additional maternity support
- This can be up to full pay for 42 weeks
- 42 weeks full pay
- 20 days
- +11 public holidays
- 28 days
- +11 public holidays
- 28 days
- +11 public holidays
Benefits
1. Healthcare / Private Medical Insurance
Publicly funded healthcare in Ireland is functional and sufficient, especially for emergency healthcare. However, long wait times are common for many treatments deemed elective, and therefore 50+% of employers provide employer paid private medical insurance. It is especially common for large companies. The cost varies by industry and age, but is on average about €1,400 per adult and €400 per dependent, and is fully employer paid for employees and their dependents.
Private insurance covers treatment in a private hospital or as a private patient in a public hospital. It typically covers inpatient and day-patient fees, and up to 50% of outpatient care.
Dental insurance is available, but typically offered in Ireland only when an overseas parent company wishes to offer the same benefits across offices in different countries. The median employer cost is about €200 per employee per year, and employees typically contribute up to about €300 per year.
Some popular providers include:
- Irish Life
- LAYA Healthcare
- VHI
Click here to view our catalogue on wellness providers in Ireland.
2. Disability
Many companies provide supplemental disability and accident cover. Plans typically top up state benefits until income reaches 50% - 75% of pre-disability salary. The employer pays the full amount, which is typically 1% of salary and is eligible for tax relief.
Leading providers include:
- Irish Life
- Zurich Life
- Aviva Ireland
- Royal London
**Click here** to view our catalogue on insurance providers in Ireland.
3. Life Insurance (Death Benefits)
Statutory death benefits are included in the PRSI, but most (50+%) employers offer supplemental Defined Contribution (DC) death benefits. These are fully employer paid at a contribution of 1% of employee salary. Death benefits are payable to surviving spouse and dependents. Typical cover for DC plans is a lump sum of 4x salary.
Some popular providers include:
- Irish Life
- Zurich Life
- Aviva Ireland
Click here to view our catalogue on insurance providers in Ireland.
4. Retirement
Statutory retirement is provided for by the PRSI, to which employees and employers both contribute. Defined Benefit (DB) plans exist but are dwindling. The majority of employers (50+%) offer supplemental Defined Contribution (DC) plans, for which the median employer contribution is 7%, and the median employee contribution is 5%.
Contributions from both employers and employees are tax advantaged.
Some popular providers include:
- Irish Life
- Zurich Life
- Aviva Ireland
Click here to view our catalogue on insurance providers in Ireland.
5. Other Benefits
Buy/Sell Holiday: The option to buy and sell holiday, but one cannot sell below the minimum statutory of 20 days
Company Car: Car benefits are offered by 80+% of employers, especially to senior management and sales staff. They are taxed as a benefit-in-kind
Subsidised Meals: Meals subsidised by about 50% are offered by 70+% of employers. This is also taxed at full value.
Mobile Phones: Mobile phones are given to employees of 75+% of companies.
- Learning & Development: 80+% of employers assist in professional development by paying for educational initiatives.
6. Other tax advantaged benefits
Commuter benefit: The employer pre-purchases a monthly or annual bus/tram/rail ticket, and the employee repays the employer monthly from their pre-tax salary, saving up to 52% on the usual expense.
Cycle to work scheme: The employer pre-purchases a bicycle and related safety equipment, and the employee repays the employer monthly from their pre-tax salary, saving up to 52% on the usual expense.
Professional subscriptions that are essential to an employee’s duties are tax exempt
Policies
1. Annual Leave
20 days is the minimum statutory holiday time, but many companies trying to attract and retain top talent are looking to offer 28 days, plus public holidays.
2. Sick pay
Statutory sick pay is 70% of salary for 5 days, and this will extend to 7 days in 2024. Many employers offer 2 weeks of fully paid sick leave.
3. Maternity & Paternity
Statutory maternity leave is up to 42 weeks, with the first 26 weeks paid €250/week by the state, and 16 weeks unpaid. Statutory paternity leave is just 2 weeks paid €250/week by the state. Statutory adoption leave is up to 40 weeks totally, with the first 24 weeks paid €250/week, and 16 weeks unpaid. An additional 26 weeks unpaid parental leave can be taken up to the child’s 12th birthday.
Many employers (40+%) provide additional maternity, paternity, parental and adoption support. This is often up to 42 weeks of full pay.