11 Employee Benefits Irish Startups Should Offer and Why

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?

Read on to find out!

Further Reading

• Have a business operating in the UK? Check out 20+ Employee Benefits to offer your UK team. 

• Get insights on tax reforms and benefits Ireland’s 2024 Budget brings for employers and employees. 

• Do you run a small business in the UK? Explore these Small Business Employee Benefits UK teams expect.

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:

• Attract top talent: Our report found that 95% of Irish employers provide life-cover benefits, such as Life Assurance, to their employees. Offering these benefits helps attract talent in a competitive job market, ensuring your company stands out as a top choice for skilled professionals. 

• Increase productivity: Offering benefits shows you care about your employees. When employees feel valued, they’re motivated to work harder, creating a positive work environment and a strong company culture.

• Boost employee satisfaction: Employee benefits boost job satisfaction and loyalty. This improves employee retention, lowers turnover rates, and cuts the cost of recruiting and training new staff.

Bonus:

From sick pay to health insurance, discover 8 essential Employee Benefits UK Startups should offer.

Wondering what other employee benefits Irish companies offer? Check out our detailed list of 15+ Popular Irish Employee Benefits.

What Employee Benefits Should Startups Offer in Ireland?

Irish startups usually offer two types of benefits to employees:

A. Mandatory Benefits 

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)

A PRSA is a flexible, long-term private pension plan that allows employees to save for retirement independently of their employer’s scheme.

If you don’t offer a workplace pension scheme or make your employees wait more than six months to join one, you must provide them access to at least one standard PRSA.

You must give them this access within six months of their start date. However, you’re not required to contribute to their PRSA.

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.

• Employee contributions: Employees aged 16 and over must contribute 4% of their income if they earn over €352 per week.

• Employer contributions: Employers must contribute 8.8% on weekly earnings up to €441 and 11.05% on weekly earnings above €441.

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

3. Statutory Sick Pay and Leave

Statutory sick pay is the mandated minimum pay you must provide, at 70% of your employee’s normal weekly wage, up to a maximum of €110 per day.

In 2024, employees have the right to 5 days of sick leave per year. This sick leave entitlement will increase to 7 days in 2025 and 10 days in 2026.

4. Paid Annual Leave 

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.

• Full-time employees are entitled to at least four weeks (20 days) of paid leave per year.

• Part-time and casual workers are entitled to annual leave based on 8% of the hours they’ve worked in a ‘leave year’ (1st April to 31st March or January to December).

5. Parental leave

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 must offer:

• Maternity leave: 26 weeks of paid leave plus 16 weeks of unpaid additional leave.

• Paternity leave: 2 weeks of unpaid leave during the first six months after the child's birth.

• Adoptive leave: 24 weeks of unpaid leave given to one parent of an adoptive couple.

• Parent’s leave: 7 weeks unpaid leave per parent during the first two years of the child’s life (increasing to 9 weeks from August 2024).

B. Supplementary Benefits

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

1. Private Health Insurance

Private health insurance 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? 

Kota lets you provide health insurance 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.

All you have to do is:

• Pick a healthcare plan.

• Add your team.

• Let your employees choose the health benefits they need.

• Manage the health plans and billing through the app.

2. Occupational Pension Plans

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.

What’s more?

The Irish government plans to introduce its new auto-enrolment pension scheme 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?

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

• Creating an account and adding your employees.

• Decide your contribution amount and what you want your employees to contribute.

• Enrolling your employees in the pension plan.

• Letting your employees manage their contributions from the app.

3. Life Assurance 

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 Kota, you can enrol your team in life assurance plans from Irish Life within minutes. 

Kota lets you:

• Select the coverage level for your employees.

• Submit a quote and cover your team instantly.

• Automatically enrol new team members directly from your HR tool.

4. Group Life Insurance

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.

5. Stock Options 

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

These include:

• Employee Share Option Plans (ESOPs): These plans give startup employees the right to buy company shares at a fixed price in the future.

• Revenue Approved Profit Sharing Schemes (APSS): This scheme allows employers to allocate shares to employees, and tax is deferred until the shares are sold or transferred.

6. In-office Perks 

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

• Free meals and snacks

• Flexible hours or work-from-home options

• Gym membership

• Mental health support and wellness programs 

• Commuter benefits, like cycle-to-work scheme 

How Can Startups Offer a Comprehensive Employee Benefits Package?

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

1. Determine Your Budget

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.

2. Balance Between Salary and Benefit

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

Kota is a powerful digital benefits app that’s:

• Easy to set up and use

• Flexible and affordable 

• Comprehensive in terms of coverage and investment options

With Kota, startup companies can offer and manage an array of benefits:

• Health Insurance: Enroll your teams in comprehensive health insurance plans provided by Irish Life Health.

• Workplace Pensions: Add your team to a corporate Master Trust, set up matched contributions, and give employees control over their contributions.

• Life Assurance: Auto-enroll your employees in life assurance schemes via Irish Life by selecting the level of cover you wish to offer.

What’s more?

Kota's Bring Your Own Benefit 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.

So what are you waiting for? 

Join Kota 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:

1. What Is Benefit in Kind (BIK) in Ireland?

In Ireland, a Benefit in Kind (BIK) refers to any non-cash benefit that an employer provides to an employee which has a monetary value. 

These benefits are considered part of the employee’s income and are subject to tax. The value of the benefit is added to the employee’s gross income and taxed accordingly.

2. What Is a Salary Sacrifice Scheme in Ireland?

Salary sacrifice is when employees agree to reduce their pay in exchange for a benefit provided by the employer. For example, giving up part of their salary for a travel pass. 

However, the employee cannot:

• Exchange a qualifying benefit for cash.

• Pass on these benefits to a family member.