What it really costs to employ a employee

The wage you agree is most of the cost, but not all of it. Here is what to budget for.

The wage

You agree a gross wage: before tax. Your employee's income tax, USC and their own PRSI come out of that wage, so you don't pay them on top. We work them out each pay day.

The wage can't be below the national minimum wage for the hours worked. The national minimum wage is €14.15 an hour, rising to €14.94 on 1 January 2027. See Citizens Information: minimum wage.

On top of the wage

• Employer PRSI. Around 11% of the gross wage for most domestic employees (a little less on lower weekly pay).
• Pension. Under auto-enrolment, once your employee qualifies, you add 1.5% of their gross pay to My Future Fund for the first three years, rising over time. See My Future Fund.
• Paid holidays. Annual leave and public holidays are paid at the normal rate. Budget for about 6 paid weeks off a year for someone full time.
• Sick pay. Statutory sick pay for a few days a year, at 70% of normal pay up to a daily cap.
• Payroll. Our yearly fee, which covers all of the payroll work.

Things that don't cost extra

Expenses you pay back, like receipts for the children's activities, are not wages if they are real costs with receipts. Small gifts can be tax-free within Revenue's small benefit rules.

Each pay day, one number

You don't need to work any of this out. Each pay day we show you what to pay your employee and what goes to Revenue, so the full cost is clear.