December 2023
Ireland | Changes to employment permits from January 2024
Impact: Medium
Summary
The Department of Enterprise, Trade and Employment have announced some major changes to the Employment Permits system with effect from January 2024 which are likely to impact employment permit applications for many employers.
The Detail
Additional occupations to become eligible for Employment Permits
In positive and welcome news, new measures will see an unprecedented number of additional occupations added to the employment permits eligibility list. The inclusion of 43 additional occupations within the employment permits net is a positive step towards plugging specific skills gaps in the Irish labour market and is sure to be welcomed by many across a wide range of sectors.
Increased salary thresholds for all employment permits
The other major update, and one that was unexpected in terms of its level and immediacy, will see significant increases to minimum remuneration thresholds for all employment permit types effective from January 2024. This is part of a wider salary roadmap review that will see remuneration thresholds increase steadily over the next 5 years with phase one beginning next month.
From 17 January 2024, the following increases in remuneration thresholds will apply in respect of key employment permits:
|
Employment Permit |
Current Threshold (Euro) |
January 2024 Threshold (Euro) |
|
General Employment Permit |
30,000 |
34,000 |
|
Critical Skills Employment Permit |
32,000 |
38,000* |
|
Intra Company Transfer |
40,000 |
46,000 |
|
Intra Company Transfer (Trainee) |
30,000 |
34,000 |
|
Contract for Services Employment Permit |
40,000 |
46,000 |
*there are no imminent changes to the salary requirements for Critical Skills applications with a minimum €64,000 threshold.
What this means for employers
While an incremental increase in salary thresholds was expected in 2024, the level of the increases and the very unexpected short lead in time will be a challenge for some employers. While some finer details are yet to be ironed out and there are still a number of questions to be clarified by the authorities, in summary we understand that:
Employment permit applications that have already been filed with the Department of Enterprise, Trade and Employment – these will not be affected and should be processed under the existing eligibility criteria.
Employment permit applications currently on hand but not yet filed – in order to be processed under existing employment permit criteria, including current salary thresholds, these will need to be filed before 17th January. Any cases that are unlikely to be submitted before this date should be assessed to ensure that the revised salary thresholds can be met.
Employment permit applications filed post 17 January 2024 – employers will need to ensure that the revised salary thresholds are met to ensure that the application meets the updated eligibility criteria. This may require a review of any employment contracts already issued to proposed employees as well as undertaking an audit of current roles and associated salary levels for the assessment of future applications.
New occupations eligible for Employment Permits – hiring managers and global mobility professionals can now begin to look further afield to attract the talent required to plug the relevant skills gaps in the Irish labour market.
Future salary increases – Employment permit salary thresholds are expected to further increase in 2025 and beyond and employers should start to implement reviews and audits of their current remuneration structures and budgets with a view to future proofing their immigration policies and talent strategies.
How we can help
We appreciate that this is a significant announcement and one that may impact on your future employment permit processes within a very short timeframe and we are happy to discuss your queries and assist you in navigating these changes.
Contact us
Vialto will continue to monitor developments and the possible impact for businesses and employees. For further details on the above, please reach out to your usual Vialto Partners contact or alternatively contact:
Aoife Kilmurray
Director – Immigration
aoife.kilmurray@vialto.com
Lindsay Tester
Senior Manager – Immigration
lindsay.tester@vialto.com
Fergus English
Manager – Immigration
fergus.english@vialto.com
Further information on Vialto Partners can be found here: www.vialtopartners.com