Guide to living and working in Ireland

Ireland

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Country Overview

 

Population

4.1m

Unemployment Rate

4.4%

Average annual unemployment rate 1995 – 2004

6.9%

GDP

€162bn / $235bn

GDP per head

€33,922 / $49,220

Capital

Dublin

Major language

English, Irish

Life Expectancy (UN)

77 years (men)

82 years (women)

Monetary unit

1 euro = 100 cents

Internet domain

.ie

International dialing code

+353

 

Ireland has a modern and trade-dependent economy with GDP growth averaging 6% over 1995-2007. Property prices have risen more rapidly in Ireland in the last decade than in any other developed world economy; there are now signs of weakness in the overheated housing market (7% fall in 2007) and the economy in general. Per capita GDP is 40% above that of the four largest European economies and the second highest in the EU behind Luxembourg.

In 2007, Ireland’s per capita GDP surpassed that of the United States. The Irish Government has implemented a series of national economic programs designed to curb price and wage inflation, invest in infrastructure, increase labour force skills, and promote foreign investment. Historic growth has been underpinned by low corporate tax rates, generous tax breaks to encourage inward investment, a well-educated workforce and open immigration policies.


The Economy

 

Agriculture was until quite recently the most important sector of the economy, but it is now dwarfed by industry and services. Construction has fuelled much recent economic growth, alongside strong consumer spending and business investment. Principal industries include: steel, lead, zinc, silver, aluminium, barite, gypsum mining processing, food products, brewing, textiles, clothing, chemicals, pharmaceuticals, machinery, rail transportation equipment, passenger and commercial vehicles, ship construction and refurbishment, glass and crystal, software, and tourism.


Pay

 

 

Human development Index

Ranking:  5th
Index value:  0.959

The Human Development Index combines statistics on GDP, adult literacy, average years of schooling and life expectancy to provide an indicator of human development. The HDI shown here gives the ranking of 24 countries among 177. See http://hdr.undp.org/en/ for more information.

 

Getting a job

Overview of the labour market:

The Irish labour market has maintained a strong growth momentum in recent years up to 2008. Underpinning the strong employment performance has been the rapid growth of the non-traded sectors of the economy (namely construction and non-market services). However, the employment boom has not been as strong in the manufacturing sector and – to a lesser extent - in the hotel and restaurant sectors.

For the next few years, the economy is expected to grow by 4-5% per annum, with the number of people in employment continuing to grow. It is expected that 35-50,000 migrant workers per annum will be needed over the medium-term. In particular, there will be a significant need for immigrants with higher education qualifications (possibly up to 25,000 per annum) because of the declining numbers of Irish going through college and the projected increase in the number of women taking maternity leave.

As more European Union member states open their labour markets to new member countries in Eastern Europe, the choice of destinations for migrant workers has increased. Yet this recent development is unlikely to lead to a significant redirection of migrant flows into Ireland. Good prospects for employment are the main attraction for migrant workers coming to Ireland. Currently, the strength of the Irish labour market makes the country the most attractive destination in the EU for jobseekers.
Applying for a job:

Application letters should be typed and printed on plain white A4 paper. You should highlight your personal qualities, relevant experience and education. Copies of qualifications and/or employer testimonials should be included.

When applying for a job, you may be asked to fill in an application form. The use of such forms is widespread (in particular for low- to mid-level positions) and they tend to follow a similar format. Standard questions may cover education and training, work experience, hobbies and personal interests. You only need to supply a photograph if this is requested on the form.

Interviews: You may be interviewed by one person or a panel of interviewers. You may be asked questions about your motivation, education and the company itself. You may also be asked to expand on information given in your application letter or form. You should take with you copies of your CV, qualifications and employer testimonials.

Curriculum Vitae: Your CV should be one to two pages long and provide an account of you, your work experience and your qualifications. There is no set format, but you should include: 

  • Your personal details
  • Your education (including schools, dates and places) 
  • Your work experience (including dates, most recent job first) 
  • Your language skills (especially if English is not your first language); and
  • Your interests and hobbies.

 

Conditions and rights

Employment law:

Ireland used to be part of the United Kingdom, so shares many aspects of the legal system with that country. The Irish government generally adheres to EU social directives. It was one of the first to introduce a comprehensive law against discrimination to give protection to a wide range of social groups. Ongoing tripartite agreements exist to sustain growth and control price inflation. The National Labour Court may issue binding recommendations on pay and conditions in companies where trade union recognition does not exist.

Working hours:

Standard hours: The maximum average working week is 48 hours. Working weeks may be averaged to balance out over a 4, 6 or 12 month period, depending on the circumstances and type of work.

Holidays and leave:

Paid leave for holidays is earned based on the length of time worked. All employees earn holiday entitlements from the time work is commenced. Most employees are entitled to 4 weeks of annual holiday for each leave year, with proportional entitlements for periods of employment less than a year.

Sick leave: may be decided by the employer or may be set out through collective agreements negotiated between employers and employee representatives.

Maternity leave: Women are entitled to take maternity leave for a basic period of 18 weeks. Four weeks have to be taken before the due date and four weeks after. Payment during maternity leave is normally provided through Maternity Benefit, which is a Department of Social and Family Affairs payment. Some employment contracts allow for additional payment rights during the leave period.

Public holidays: 1st January, St Patrick’s Day, Easter Monday, the first Monday in May, the first Monday in June, the first Monday in August, the last Monday in October, Christmas Day and St. Stephen’s Day. If the public holiday falls on a day on which the employee normally works, then the employee is entitled to another paid day off.

 

Contracts

Part-time Employment:

The Protection of Employees (Part-time) Act 2001 provides: that a part-time employee cannot be treated in a less favourable manner than a comparable permanent employee in terms of employment conditions.

Fixed-Term Contracts:

The Protection of Employees (Fixed-Term Work), Act provides: that a fixed-term employee cannot be treated in a less favourable manner than a comparable full-time employee in terms of employment conditions. All employee protection legislation, other than for unfair dismissal in certain circumstances, applies to a fixed-term employee in the same manner as it applies to a permanent employee.

Employment contracts:

Anyone who works for an employer for a regular salary automatically has a contract of employment, whether written or not. This may be expressed or implied, oral or in writing. The Terms of Employment (Information) Acts 1994 and 2001 provide that an employer is obliged to provide an employee with a written statement of terms of employment within two months of starting work. This statement must include the following information: 

  1. full name of employer and employee 
  2. address of the employer 
  3. place of work 
  4. job title or nature of work 
  5. date of commencement of employment 
  6. duration of the contract
  7. rate of pay or method of calculation of pay
  8. that the employee may request from the employer a written statement of the employee’s average hourly rate of pay for any pay reference period as provided in that section. 
  9. pay intervals 
  10. terms or conditions relating to hours of work 
  11. terms or conditions relating to paid leave 
  12. terms and conditions relating to sick/injury leave and sick pay and pensions and pension schemes notice which the employee is entitled to receive and obliged to give 
  13. reference to any collective agreements which directly affect the terms and conditions of the employee’s employment.

 

Visas and work permits

Visas:

Nationals of certain countries can visit Ireland for up to three months without a visa, but will need to be granted a work permit to take up employment. Citizens of the following countries can stay for up to 90 days without a visa:
Andorra, Antigua And Barbuda, Argentina, Australia, Austria, Bahamas, Barbados, Belgium, Belize, Bolivia, Botswana, Brazil, Brunei, Canada, Chile, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Dominica, El Salvador, Estonia, Fiji, Finland, France, Germany, Greece, Grenada, Guatemala, Guyana, Honduras, Hong Kong, Hungary, Iceland, Israel, Italy, Jamaica, Japan, Kiribati, Korea (Rep Of South), Latvia, Lesotho, Liechtenstein, Lithuania, Luxembourg, Malawi, Malaysia, Malta, Mauritius, Mexico, Monaco, Nauru, Netherlands, New Zealand, Nicaragua, Macau, Maldives, Norway, Panama, Paraguay, Poland, Portugal, Saint Kitts & Nevis, Saint Lucia, Saint Vincent & The Grenadines, San Marino, Seychelles, Singapore, Slovenia, Solomon Islands, South Africa, Spain, Swaziland, Sweden, Switzerland, Tonga, Trinidad & Tobago, Tuvalu, U.S.A, UK, Uruguay, Vanuatu, Vatican City, Venezuela, Western, Samoa and Zimbabwe.

Nationals of countries not mentioned above will need a visa to visit Ireland.

Work permits:

Citizens of full European (EU/EEA) Member Countries: are able to live and work in Ireland without a visa or work permit.
Citizens of ‘new’ EU Member Countries: (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia) are welcome to live and work in Ireland on the same basis as nationals of existing EU States.

If you are from a country that is not a member of the European Union, you must obtain a work visa or permit to work in the Republic of Ireland.

 

Tax, social security and healthcare

Tax system:

Taxation of an individual's income is progressive in Ireland: the higher the income, the higher the rate of tax payable. Individual income tax in 2008 are 20% and 41%; there are allowances depending on the individual and family situation, in addition to reduced rates for lower-income earners. An individual is liable for tax on his income as an employee and/or on income as a self-employed person.

Tax is payable on income earned in Ireland and overseas by an individual who meets the test of being a "permanent resident" of Ireland. A foreign resident who is employed in Ireland pays tax only on income earned in Ireland. To be considered an Irish resident for tax purposes: you must be resident for more than 183 days a year or resident for more than 280 days over a period of two years.

Employers are obliged to directly deduct the amount of tax payable on a monthly basis from an employee’s salary (under the PAYE scheme). Self-employed individuals prepay income tax, with these prepayments offset against the amount due when the annual return is filed. The amount of advance payments is based on the previous year’s return. If a new business or activity, the amount of prepayment is calculated on the basis of estimates made by the business owner or self-employed person.


Ireland’s individual income tax rates 2008 (single person)

Income Band (€)

Tax %

0 – 35,400

20%

35,401+

41%

 

Social security system:

Social welfare in Ireland is administered by the Department of Social and Family Affairs. The Department is responsible for the delivery of a range of social insurance and assistance schemes including: provision for unemployment, illness, maternity, caring, widowhood, retirement and old age. Payments are generally divided into three groups: 

  1. Social Insurance (or contributory) payments which are made on the basis of PRSI (Pay-Related Social Insurance) Contributions. 
  2. Social Assistance (or non-contributory) payments which are made on the basis of satisfying a means test. 
  3. Universal payments (such as Child Benefit or Free Travel) which are not dependent on PRSI contributions or a means test.

When you enter employment in Ireland, your employer will need your Personal Public Services Number (PPS No.) in order to make social insurance contributions. Those expected to pay social insurance generally include:

  • all employees, whether full time or part-time
  • self-employed workers with an income above  €3,174 a year.

In return, a range of Social Insurance benefits and pensions are covered. All applicants regardless of nationality are required to be habitually resident in the country to qualify for the following payments: 

  • Unemployment Assistance
  • Old Age Non-Contributory Pension
  • Blind Pension
  • Widow(er)’s and Orphans Non-Contributory Pensions
  • One-parent Family Payment
  • Carer’s Allowance
  • Disability Allowance
  • Supplementary Welfare Allowance 
  • Child Benefit

 

The health system:

There are two health care systems in the Irish State, public and private.

The public health care system
If you are an EU/EEA or Swiss national and you reside in the Irish State you are entitled to the same benefits under the public health care system as an Irish citizen. There are a wide range of public health care services available. However, the services that you are entitled to are determined by your income level and whether you fall into Category 1 or Category 2 of the public health care scheme. Under the scheme, persons with Category 1 eligibility receive a medical card. Everyone over 70 years of age is automatically eligible. If you are in receipt of the maximum rate of a means tested payment such as, Supplementary Welfare Allowance or One-Parent Family Payment etc. you are entitled to a medical card, otherwise your case will be handled individually and your full income will be means tested to determine eligibility.

An Irish medical card entitles you to the following: 

  • Free visits to your GP (General Practitioner: non-specialist doctor)
  • Free medication and treatments
  • In-patient hospital care on public wards in public hospitals
  • Out-patient care in public hospitals
  • Dental, optical and aural services
  • In-patient and out-patient consultant services
  • Maternity and infant care services
  • Other community care services such as free home-care nursing from your local public health nurse.

If you are not eligible to a medical card then you fall into category 2 of the public health care system. All EU/EEA, Swiss and Irish residents are entitled to day and night care in a public hospital subject to a daily cost of €45.00. All trips to your local doctor (approx. €40 per visit), and medication are paid by you. However, under the Drugs Payment Refund Scheme (DPS) you and your family are entitled to a refund on any expenditure on medication over €78 per month.

The private health care system
There are two options for private care in Ireland, VHI and BUPA Ireland. Both offer a wide range of similar services depending on the policy cover you opt for. The standard rate income tax on private health insurance is deducted at source.