5th December 2025
Employer Obligations in Ireland: A Guide to Statutory Employee Benefits (2025–2026)
Employers in Ireland face a range of legal responsibilities to ensure their workforce receives fair treatment and protection. These obligations are defined through statutory benefits, which set the minimum standard for employee entitlements. It is essential for businesses to remain compliant with updated requirements around leave, pay, and PRSI contributions.
One of the core statutory benefits is annual leave. Employers must provide full-time staff with at least 20 days of paid leave per year, with pro-rata entitlement for part-time employees. Public holidays must also be recognised, with employers offering either a paid day off, an extra day’s pay, or additional annual leave in line with legislation.
Sick pay has been undergoing gradual reform. Employees are entitled to five days of statutory sick leave per year. During these days, employers are required to pay 70% of the worker’s normal daily wage, up to a maximum of €110 per day, provided that the employee has at least 13 weeks of service and can supply a valid medical certificate.
Family-related leave is another key area. Maternity leave remains set at 26 weeks, with the option of an additional 16 weeks unpaid. Other types of leave, such as paternity leave (two weeks), parent’s leave (nine weeks per parent), and adoptive leave (24 weeks), must be granted by employers. While businesses must ensure the employee’s role and service are protected during these periods, wages are generally paid by the State, unless the employer opts to provide a top-up.
Employers must also respect working time rules, which include the 48-hour average working week, minimum daily and weekly rest periods, and breaks during the working day.
Compliance with payroll obligations is equally important. From 1 October 2025, PRSI rates has raised – employer PRSI increases to 11.25% for weekly incomes over €527 (and 9% for lower incomes), while the employee rate will rise to 4.2% for income over €352.01 (** PRSI credit is applicable for income between €352.01 and €424). The next PRSI increase is expected in October 2026 – by 0.15%. This means that Employee will pay 4.35% of PRSI for the income over €527 a week, and Employer will pay 11.40% of PRSI.
In short, statutory benefits are not optional—they form the legal baseline for employment in Ireland. By keeping pace with changes to leave entitlements, PRSI contributions, and working time rules, employers can ensure compliance and maintain a fair, supportive workplace.
Keeping up with statutory obligations can be complex, but you don’t have to manage it alone. If you need support reviewing your policies, updating your payroll processes, or ensuring full compliance with current employment law, get in touch with our team today. We’re here to help you navigate each change with confidence.
