Employee Benefits
In Ireland
Employee benefits are what take a company from good to great. Competitive salaries may attract talent, but it’s the benefits that make employees feel valued, supported, and motivated to stay. Let's learn what employee benefits are, why they matter, and how businesses in Ireland can design a benefits program that truly works for both employees and employers.
What Are Employee Benefits?
Employee benefits are non-monetary benefits offered to employees in addition to their regular salary. These are a means to attract and retain top talent in the company. Employee benefits can be categorised into two main types.
Employee benefits are non-monetary benefits offered to employees in addition to their regular salary. These are a means to attract and retain top talent in the company. Employee benefits can be categorised into two main types.First is a statutory benefit; these benefits are legally required by Irish employment law, and businesses must comply with the same. Second are non-statutory benefits; these benefits are voluntary additions that businesses can provide to differentiate themselves in the job market.
Mandatory Employee Benefits In Ireland
Annual Leave
Employees should be given a mandatory paid leave of four weeks per year. They are also entitled to Carer&aposs leave, which allows them to take leave to care for a loved one for a minimum of 13 weeks.
Maternity Leave
Expectant mothers can take a paid leave of 26 weeks. Further, mothers are also allowed 16 weeks of unpaid leave after the maternity leave ends. Parents of older children can also take an unpaid leave of 22 weeks.
Retirement Contributions
PRSA contributions are part of mandatory or statutory benefit schemes in Ireland, especially as auto-enrolment pensions are rolled out. Employers can contribute to an employee’s PRSA as part of their retirement benefits.
Insurance
Employees are required to make contributions to PRSI (Paying social insurance). An employer is also required to pay a PRSI of 11.5% for each employee.
Overtime
Employers must compensate employees for overtime either by way of extra pay, an increase in pay, or reasonable paid time off.
Paid Sick Leave
Employers are entitled to five paid sick leave days per year. This benefit is called statutory sick pay, where 70% of an employee&aposs weekly wage or a maximum of €110 is provided.
Employee Benefit Programs For Large Enterprises vs SMEs
Employee benefit programs are not the same for every business. Larger enterprises often have structured programs with pensions, health insurance and international perks. While, SMEs tend to focus on low-cost, flexible employee benefit solutions.
Cost-effective:
Whether you are a big corporation or a startup, budgets matter. The right employee benefit scheme helps you deliver maximum impact while staying affordable for the business.
Flexibility:
Employee benefits are not a one-size-fits-all. Employees across different levels, generations and even locations have different needs. For companies with international teams, offering global employee benefits ensures all employees, regardless of location, can enjoy tax-efficient rewards and perks that matter to them.
Low-Admin Load:
Admins and HRs are overloaded with work as is. A benefit program should not create further headaches for them. Companies can leverage clever, digital-first solutions that are quick to issue and use.
Tax-efficient:
In Ireland, businesses can take advantage of schemes like the Small Benefit Exemption Scheme. Under this scheme, employees get the full value of their reward and employers save on tax costs.
Tax-Free Employee Benefits For Employees In Ireland
Businesses in Ireland can take advantage of the Small Benefit Exemption Scheme. SBE is a Revenue-approved scheme that allows employers to give their employees up to five non-cash benefits, which amount to no more than €1,500 total per year tax-free.
It cannot be redeemed partially or fully in cash
It must not form part of a salary sacrifice arrangement
The non-cash benefit must not exceed €1,500
Balancing Cost & ROI Of Employee Benefit Programs
The average benefit-cost ratio for companies in 2025 is around 31%. Meaning companies spend around 31 cents for every dollar of wages paid. This figure can vary depending on the industry, size of the company and different employee benefit packages.
However, the key to building the best employee benefit scheme is not spending more, but spending smarter. Employees engage more with these perks if they are relevant to them and add value to their lives.
To build a strong employee benefit program that drives maximum ROI, Irish employers need to listen to their employees and understand what they value. Additionally, leveraging tax-efficient options like the Small Benefit Exemption and offering flexible, digital-first benefits can maximise ROI while keeping administration low.
Build An Efficient Employee Benefit Program With CleverCards
CleverCards is a smart choice for businesses in Ireland that want to focus on building a tax-efficient and flexible employee benefits program. CleverCards offers prepaid employee benefits Mastercards. These cards are fully compliant with Ireland's Small Benefit Exemption Scheme. Here's how CleverCards helps build an efficient employee benefit program.
Tax-free: CleverCards are tax-free up to €1,500 per employee, per year.
Prepaid: These cards are pre-loaded by businesses, meaning employers can load and issue cards on the go.
Instant Delivery: CleverCards employee benefit cards are delivered instantly via email.
Easy Tracking: Employees can easily track their card balance on the CleverCards app
Flexible: Cards can be added to Google Pay & Apple Pay and can be spent at over 50 million+ merchants worldwide
Zero Hassle: Everything is managed digitally through a seamless portal, meaning no admin overload
Frequently Asked Questions (FAQs)
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