If you’re a startup founder or HR professional in Ireland, offering a competitive benefits package is crucial for attracting and retaining top talent.

Jobseekers, on the other hand — must evaluate these benefits thoroughly before accepting an offer.

Curious about what benefits are offered by startups in Ireland?

And how it helps them build a strong team?

Why Should Startups Offer Employee Benefits in Ireland?

Although offering benefits may seem like an added cost, it can save you money in the long run by helping you:

From sick pay to health insurance, discover 8 essential 

Wondering what other employee benefits Irish companies offer? Check out our detailed list of 

What Employee Benefits Should Startups Offer in Ireland?

Irish startups usually offer two types of benefits to employees:

If you run a startup, these are the government-mandated benefits you’re legally required to provide to your employees. 

1. Personal Retirement Savings Account (PRSA)

 that allows employees to save for retirement independently of their employer’s scheme.

 or make your employees wait more than six months to join one, you must provide them access to 

You must give them this access within six months of their start date. However, you’re 

2. Pay Related Social Insurance Contributions (PRSI)

PRSI is a mandatory contribution paid by Irish employers and employees. These contributions go into the Social Insurance Fund (SIF), which helps the government pay for social welfare benefits and pensions.

Employers are responsible for deducting PRSI from employees' paychecks and making contributions based on their salary.

PRSI rates will increase by 0.1% from 1st October 2024 onwards as per Budget 2024.

Statutory sick pay is the mandated minimum pay you must provide, at 

of your employee’s normal weekly wage, up to a maximum of 

 leave per year. This sick leave entitlement will increase to 7 days in 2025 and 10 days in 2026.

As per the Organisation of Working Time Act 1997, all employees, including full-time, part-time, temporary, and casual workers, are entitled to paid time off work.

Parental leave (paid or unpaid, as specified by the employment contract) provides time off for new parents. They can use it for childcare, bonding with a new child, or managing pregnancy-related problems.

Employers offer these additional benefits on top of employees’ regular pay to support their health and financial well-being. 

 provides employees faster access to healthcare services, covering various medical expenses from routine check-ups to major surgeries.

Employers typically pay part or all of the employee’s health insurance premium, with the remaining costs covered by employees through payroll deductions.

Want to offer affordable group health insurance to your Irish employees? 

 that covers inpatient, outpatient and, depending on your plan selection, day-to-day costs. 

With Kota, you can scale your benefits as needed, give employees control over their health plans, and seamlessly sync your HR and payroll tools to reduce admin costs.

Occupational pension schemes are retirement plans that employers set up to provide employees with additional income upon retirement. 

Employers and employees contribute a percentage of their earnings to the pension fund, which is invested in shares or stocks to prevent its value from getting reduced due to inflation.

The Irish government plans to introduce its new 

 starting January 2025. Under this scheme, employers are required to match the employee’s contributions (1.5% for the first three years), with the government adding an additional amount.

Looking to set up occupational pensions for your team?

 is a powerful platform that offers flexible occupational pension schemes, automates benefit rollouts to minimise paperwork, and lets you compare your plans locally with geo-based data. 

You can easily enrol your employees in industry-recognised 

 via Irish Life Pension and meet future auto-enrollment requirements by:

Life Assurance covers your employees for as long as they are in employment, providing peace of mind that their loved ones will be financially secure if they die unexpectedly.

Employers pay the premium for their employees, and upon their death, a lump sum (typically 2x or 4x their salary) gets paid to their beneficiaries. 

Offering Group Life Assurance is more affordable than individual cover, and fortunately, with 

Unlike life assurance, which covers employees for life, life insurance provides a lump sum to the employee’s beneficiaries if the employee dies within a specified period or “term”.

Employers typically pay the entire premium and cover all employees under a single master policy.

Tech startups and companies in Ireland often provide stock options in their benefits packages. 

Employers can further enhance their benefits package by offering various additional perks and incentives, such as:

How Can Startups Offer a Comprehensive Employee Benefits Package?

Keep these factors in mind when designing an employee benefits program:

When creating a benefits plan, be realistic about your financial limitations. 

In the early stages, start by offering mandatory benefits and allocating remaining funds for optional ones. As cash flow improves, you can gradually expand your offerings.

Offering work-life balance perks like paid time off (PTO), 

, and remote working shows that you care about your employees’ well-being. 

This helps startups attract the best employees even if they don't offer the highest salaries.

3. Partner with Employee Benefits Management Platforms 

 can offer and manage an array of benefits:

 feature lets you add extra benefits, from employee well-being to learning and professional development programs. This way, you can manage all benefits from a single digital platform.

 and manage your startup’s employee benefits effortlessly. 

2 FAQs on Startup Employee Benefits in Ireland

We’ll answer two commonly asked questions about employee benefits for startups:

11 Employee Benefits Irish Startups Should Offer and Why

A solid employee benefits package can be your secret weapon to attract top talent.

While providing certain benefits is mandatory, supplementary perks, like private health insurance, can set you apart from competitors.

Let’s explore six essential employee benefits for small businesses and outline best practices to create an effective package.

6 Small Business Employee Benefits You Should Offer in The UK

Before we dive in, let's clarify one thing. 

, National Insurance Contributions, statutory sick pay, etc. Providing each mandatory benefit is crucial for legal compliance and employee welfare.

Small businesses must go beyond providing government-mandated benefits to foster engagement and long-term retention. 

Supplementary benefits, like comprehensive health plans and innovative work-life balance initiatives, can significantly boost employee satisfaction and productivity.

We’ll look at some of the mandatory and supplementary benefits small businesses must offer. 

 for the complete list of mandatory benefits you’ll have to offer.

Under the UK’s auto-enrolment law, all companies must provide workplace pension plans for employees.

The required contributions are as follows:

to understand its eligibility, contributions, and more. 

Wondering how to set up an auto-enrolment-compliant pension scheme for your small business?

Kota is a modern employee benefits platform that 

 to meet auto-enrolment requirements and offer valuable benefits effortlessly.

Offering business health insurance to your small business employees is an effective way to show you care about their well-being. 

Such coverage helps ensure that if employees fall ill, they can receive prompt and effective medical treatment. This leads to quicker recoveries, allowing employees to return to work sooner, which can maintain productivity and reduce overall business disruptions.

 what’s a budget-friendly way to offer health insurance to your team?

At Kota, through our partner Vitality, we go a step further by offering optional outpatient coverage to enhance your team's health benefits. 

You can also choose to upgrade to full diagnostic coverage, providing comprehensive outpatient care within your chosen limit.

What else can you do to secure your employees?

Additional measures employers can consider are group income protection and disability insurance. 

Happy and productive employees are the backbone of any successful business. 

Here are some benefits that can boost your team's well-being and performance:

Most UK health insurance plans now include mental health support. 

These benefits can boost employee morale and help them manage stress, anxiety, and other mental health issues. This could potentially reduce absenteeism and improve productivity. 

As a small business, this means you will have a more resilient workforce and the potential for improved business performance.

, we recognise the importance of mental health support. That's why we offer Vitality health insurance plans with an optional mental health add-on. This provides comprehensive coverage, including:

Check out our detailed guide on the mandatory 

An EAP is a collective employee support system offering various services and workplace benefits.

It offers confidential help for personal problems, legal advice, financial guidance, and more.

EAPs are usually implemented through a combination of:

Many UK businesses find that EAPs cost as little as £3.50 to £15 per employee per year, making them an affordable option even for small companies.

It's a small investment that can yield significant returns in employee satisfaction, employee retention and productivity. 

Many UK employers go beyond statutory requirements to support employees with families. 

These benefits demonstrate a company's commitment to work life balance and can be a powerful tool for attracting top talent in a competitive job market.

5. Salary Sacrifice for Enhanced Retirement Savings

Salary sacrifice schemes offer a way to boost retirement benefits for employees and tax savings for employers.

When implementing a salary sacrifice scheme, employers must ensure that employee salaries don't fall below the National Minimum Wage (£11.44 per hour in 2024) after sacrifice.

These fringe benefits can significantly enhance employee satisfaction and work-life balance:

You can also consider other voluntary benefit options to customise the employee benefit package to suit individual needs:

How can small businesses effectively implement these benefits?

Let's explore some best practices to offer a compelling employee benefits package.

4 Best Practices for Small Businesses Offering a Benefits Package

Designing an attractive benefits package requires careful planning and execution. 

Here are four key strategies to help small businesses in the UK create cost-effective and competitive benefits packages:

Start by understanding what your small business employees truly value. 

According to a 2023 UK survey by Willis Towers Watson, 

 of employees consider their benefits package when deciding to stay with their current employer. 

Consider implementing a flexible benefit scheme, allowing employees to customise their benefits package according to their needs.

Small Business Employee Benefits UK: What to Offer + Tips

 always seem to attract the most talented employees?

The secret sauce might just be their employee benefit package. 

What benefits should you offer as a startup? 

Let’s explore what's mandatory, what's popular, and why offering a competitive 

 could be your ticket to startup success in the UK.

Startups in the UK are legally required to offer some benefits like Statutory Sick Pay and occupational pension schemes.

Beyond these legal requirements, popular benefits such as private health insurance, flexible work arrangements, and financial incentives can significantly enhance employee retention.

Mandatory benefits are the non-negotiables every UK employer must provide:

If your employees are sick and unable to work, they are entitled to Statutory Sick Pay (SSP). 

In 2024-25, SSP is £116.75 per week for up to 28 weeks.

In the UK, National Insurance Contributions (NICs) are mandatory payments from employers and employees to fulfil legal obligations. 

These contributions help employees access state benefits such as the 

, unemployment benefits, and maternity pay.

For employees, NICs are deducted from their earnings, while employers contribute based on the employee's salary.

 into an occupational pension scheme and make contributions to an employee’s pension.  

Employees and employers contribute a minimum of 8% of earnings, with at least 3% coming from the employer.

Learn how to calculate pension contributions in our 

Want to set up a compliant workplace pension scheme for your startup? 

Kota is a modern employee benefits platform for effortless

Sign up for a free demo to see Kota in action

Check out other mandatory benefits in our guide on the 

20+ Employee Benefits UK Employers Should Offer

2. Popular Company-Paid Employee Benefits

In addition to the mandatory benefits, consider adding the following benefits to your employee’s compensation package.

These benefits boost employee satisfaction and loyalty by prioritizing employee well-being and happiness.

 like private health insurance and wellness programs can reduce absenteeism and increase productivity.

56.4% of Ravio customers—a compensation benchmarking platform—offer private health insurance in the UK

If you have employees in Ireland, ensure you offer these essential 

 that can boost your team's productivity and morale.

Convenient working options, such as remote work and other flexible work arrangements, can help employees maintain a healthy work-life balance. 

This ensures they stay productive and motivated while navigating the fast-paced nature of a startup.

How can you set up flexible working arrangements?

Protect your employees' financial well-being with these insurance offerings.

In addition to traditional benefits like pensions and health insurance, modern 

Why Should a Startup Offer a Competitive 

Employees often value benefits that enhance 

 can significantly boost employee loyalty by showing that your startup values and supports its team.

Let’s take a closer look at these benefits:

Offer Cost-Effective Benefits to Your UK Startup Team with Kota

 is a cutting-edge global employee benefits platform that simplifies 

, to offer budget-friendly core benefits like:

All this without the hassle of dealing with an insurance broker or complex paperwork!

Here are more reasons you’ll love Kota:

 to make benefits effortless and affordable for your startup team.  

Let’s answer some common questions about startup employee benefits. 

. How to Choose the Best Health Insurance Plan for Your Team?

Startups should consider private health insurance plans that offer comprehensive coverage for employees. Here are some actionable steps:

Private health insurance and other healthcare benefits are some of the most sought-after job 

So, offering affordable health coverage through 

can offer other low-cost and free benefits such as:

3. What Is Key Person Insurance? Should You Include It in Your Benefits Package?

Key Person Insurance is a policy that protects 

 if a crucial team member, like a startup founder, can’t work due to illness or death. It provides a payout to help the business stay afloat.

8 Must-Have Employee Benefits for UK Startups (+ How to Manage)

Move or import your existing pension, all within Kota

We're excited to announce the launch of our new feature, Pension Switch, a non-advised service which allows users to move their existing pension provider to our integrated pension provider, Smart Pension. 

Managing multiple benefits across different platforms takes time and effort. With Pension Switch, you can move your Smart Pension scheme to Kota or bring your existing pension from another provider, all within minutes. This is the first time this seamless integration has been made possible, marking a considerable milestone in our mission to simplify HR and finance operations.

Typically, changing pension providers involves a lengthy and complex process with numerous steps and paperwork. With Pension Switch, Companies  can now seamlessly move their existing pension plans to the Kota platform to be managed alongside their insurance, and flexible benefits from a single platform. This means a hassle free transition, centralised billing and payroll reporting for core benefits and less inefficient administration. 

Smart Pension is one of the UK's largest workplace pension providers, with over 1 million members saving for their retirement. Kota works with Smart Pension to enable employers to set up and manage their pensions from within the Kota platform. Our integration with Smart Pension means that you and your employees don’t have to jump between benefit providers to manage your UK benefits packages - you can do it all within the Kota platform.

By combining pensions, insurance, and flexible benefits management, we eliminate the need for multiple services and tools. This consolidation saves time but also reduces the risk of discrepancies and errors, ensuring a smoother operation for your HR and finance teams. 

Bring your existing Smart Pension scheme.

If you have an existing scheme in the UK and would like to learn more about centralising your employee administration, talk with our team by booking a call 

Introducing Pension Switch: Move or import your existing pension, within Kota

Introducing Pension Switch

Wondering what happens to your UK workplace pension benefit after death?

Don't worry. Your workplace pension will be transferred to your nominated beneficiary upon death — but with certain conditions.

Let’s explore how it works with defined benefit and contribution pension schemes and whether your nominated beneficiaries get any tax relief.

What Happens to My Workplace Pension if I Die in the UK?

UK workplace pensions can be defined benefit or 

A. What Happens to a Defined Benefit Pension if I Die?

Defined benefit or final salary pensions promise a specified monthly benefit upon retirement. 

The fate of these pensions after death involves several possibilities:

Beneficiaries, such as a spouse or dependent, who receive ongoing pension payments will pay income tax at their marginal rate, regardless of the deceased’s age at death.

B. What Happens to a Defined Contribution Pension When I Die?

Defined contribution pensions accumulate a pension fund based on contributions from you and your employer, plus any investment growth. 

The options available to your beneficiaries depend on the status of the pension at the time of your death:

If your beneficiaries decide to draw down on your defined contribution pension after your death, the tax treatment depends on your age at the time of death:

The LSDBA replaced the previous lifetime allowance (LTA) in April 2024.

Remember these provisions to ensure your workplace pension benefits are maximised for your beneficiaries and aligned with your estate planning goals. 

8 FAQs About UK Workplace Pension Inheritance

Understanding the fate of your workplace pension after death is as crucial as having life insurance.

We’ll answer some more questions about UK pension inheritance to help you. 

1. How Can I Nominate a Beneficiary to My  Workplace Pension?

It’s easy — just fill out an online expression of wish form, usually available through your pension scheme's website or by contacting customer service directly. 

This form lets you specify who will receive your pension benefits upon death.

Review your pension’s annual benefit statement regularly and update beneficiary nominations as needed, as life circumstances can change over time.

2. What Happens if I Have Multiple Pensions?

Having multiple pensions means juggling different rules and beneficiaries across various schemes. 

Consider consolidating your pensions into one plan to simplify matters.

11 Employee Benefits Irish Startups Should Offer and Why

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