Public holidays can create confusion for many Irish employers when processing payroll. Questions often arise around whether employees should be paid extra, how to treat part-time staff, and what happens if the employee does not normally work on the public holiday.
Understanding the rules is important for compliance and also helps avoid disputes with employees. In Ireland, public holiday entitlements are governed primarily by the Organisation of Working Time Act 1997, and most employees are entitled to a benefit for each public holiday.
In this blog post, we will explain how public holidays work from a payroll perspective and what businesses need to consider.
Public Holidays in Ireland
Ireland currently has 10 public holidays each year, including days such as New Year’s Day, St Patrick’s Day, and Christmas Day. Employees are generally entitled to a benefit for each public holiday, although the type of benefit depends on their work pattern and whether they work on that day.
From a payroll perspective, the most important question is: does the employee normally work on that day?
Who Is Entitled to Public Holiday Pay?
Most employees qualify for public holiday benefits.
Full-time employees qualify automatically. However, part-time employees must meet a minimum requirement: they must have worked at least 40 hours in the 5 weeks before the public holiday to qualify for payment or time off.
If a part-time employee does not meet this threshold, they may not be entitled to the public holiday benefit.
This rule is particularly relevant for payroll administrators managing staff with variable hours. Its vital if you have partime employees that you have a proper system of tracking staffs working hours to be able to assess the eligibility with accuracy.
When the Public Holiday Falls on a Normal Working Day
If the public holiday falls on a day that the employee normally works, the payroll treatment is usually straightforward. In most cases, the employee simply receives their normal pay for the day as part of their salary or wages.
However, if the employee is required to work on the public holiday, they must receive both:
– Payment for the hours worked, and
– An additional public holiday benefit.
The employer can choose how to provide this benefit. The law allows four options:
– A paid day off on the public holiday
– A paid day off within one month
– An extra day of annual leave
– An extra day’s pay
From a payroll perspective, many businesses choose the extra day’s pay option because it is simple to administer.
When the Public Holiday Falls on a Non‑Working Day
Things become more complex when the public holiday falls on a day the employee does not normally work.
In this case, the employee is still entitled to compensation. Typically, they must receive one‑fifth of their normal weekly wage as payment for the public holiday.
For example:
An employee works 5 days per week
Their weekly wage is €600 which is fixed
One‑fifth of their weekly wage is €120
If the public holiday falls on a day they do not normally work, the employer must still provide a benefit equivalent to €120 (or time off equivalent). This rule ensures employees receive fair treatment even when the holiday falls outside their normal working schedule.
Where it can get trick here is that not every employee has a fixed hours or pay. It the employee’s pay does fluctuate, use the employee’s average daily rate of pay (excluding pay for overtime) calculated over the previous 13 weeks.
What Happens If an Employee Works on the Public Holiday?
Some businesses remain open on public holidays, particularly in sectors such as hospitality, retail, and healthcare.
If an employee works on the public holiday, they must receive:
1. Pay for the hours worked, and
2. One of the public holiday benefits mentioned earlier.
In practice, payroll often reflects this as normal pay plus an additional day’s pay or a day off in lieu.
Other Situations Payroll Should Consider
There are a few additional scenarios that payroll teams should be aware of:
Employees on sick leave
Employees can still receive public holiday benefits while on sick leave in certain circumstances, depending on the length of the illness.
Employees leaving employment
If an employee leaves shortly before a public holiday but worked in the preceding weeks, they may still be entitled to payment for that holiday.
Employees on statutory leave
Public holidays that occur during maternity leave, parental leave, or similar statutory leave must still be accounted for.
These situations often require careful payroll adjustments.
Common Payroll Mistakes Businesses Make
In practice, payroll errors around public holidays usually fall into a few categories:
– Forgetting to apply the 1/5 weekly pay rule
– Not checking the 40‑hour eligibility rule for part-time employees
– Failing to give an additional benefit when employees work on the holiday
– Inconsistent treatment across employees
For businesses with shift workers or irregular schedules, having a clear payroll process for public holidays is essential.
Final Thoughts
Public holidays are a statutory entitlement in Ireland, and employers must ensure employees receive the correct benefit. While the rules are straightforward once understood, they can become complicated in payroll when dealing with part-time staff, shift workers, or employees who work on the public holiday itself.
The key payroll considerations are:
– Confirm if the employee qualifies for the public holiday benefit
– Check whether the holiday falls on a normal working day
– Apply the correct payment method (normal pay, additional pay, or 1/5 weekly pay)
– Record the benefit correctly in payroll
Getting these details right ensures compliance with employment law and helps maintain good employee relations.
Disclaimer: this blog post is for informational and educational purposes only and should not be construed as financial advice.
