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We here at Crean Accountants meet many business owners at the point where their company is growing, and growth usually brings two decisions close together: taking on more staff and, sooner or later, finding more space to put them. Hiring the right person can transform a business, but the figure on the job advert is only part of the story. Before you commit to a new role, it pays to understand what that employee will really cost over the course of a year.

Salary Is Only the Starting Point

Most owners budget carefully for gross pay, yet the true cost of employing someone includes a range of statutory charges, overheads and hidden expenses that are easy to overlook. Individually they can seem small. Together they can add a substantial amount to the headline salary, and ignoring them is one of the most common reasons a new hire puts unexpected pressure on cash flow.

Employer PRSI

Every employer pays PRSI on top of an employee’s gross wages. For most employees the rate is just over 11 per cent, with a lower rate applying to those on smaller weekly earnings, and it has been rising in small annual steps. On a salary of €40,000, that alone adds more than €4,000 a year before anything else is considered.

Pension Auto-Enrolment

The introduction of auto-enrolment has added a new cost for many employers. Ireland’s My Future Fund scheme went live at the start of 2026, and it automatically enrols employees aged 23 to 60 who earn at least €20,000 across all their jobs and are not already covered by a qualifying pension such as an occupational scheme or PRSA. Employers currently match employee contributions at 1.5 per cent of gross pay, with the rate stepping up every three years until it reaches 6 per cent from 2035. The early rate is modest, but it will grow steadily, so it belongs in any long-term staffing budget.

Paid Time Away From Work

Full-time employees are entitled to four working weeks of paid annual leave, plus ten public holidays each year. Statutory sick pay, introduced in 2023, also requires employers to pay a portion of wages for a set number of sick days. None of this is optional, and in smaller teams it often means arranging cover or accepting reduced output during absences, both of which carry a cost of their own.

Recruitment and Onboarding

Finding the right person costs money before they even start. Advertising, recruitment agency fees and the time spent shortlisting and interviewing all add up. Once they arrive, most new staff take several months to reach full productivity, and during that period colleagues and managers spend time training and supporting them. If the hire does not work out, much of that investment is lost and the process begins again.

Equipment, Software and Insurance

A new employee usually needs a laptop, a phone, software licences and access to the systems your business runs on, many of which are now billed per user each month. Employer’s liability insurance may rise as headcount grows, and payroll, HR and health and safety obligations all take time or professional fees to manage properly. Benefits such as health insurance, training budgets or a company vehicle add further cost, and some carry benefit-in-kind implications.

The Space Every New Hire Needs

This is the cost we see overlooked most often. Each additional person needs somewhere to work, whether that is a desk, a workshop bench, a parking space or room in a shared office. For a while, a business can absorb new staff into its existing premises, but there comes a point where the current building simply no longer fits.

When that happens, the decision about whether to rent larger premises, buy a commercial property or reorganise the space you already have becomes a significant financial commitment in its own right. Factoring accommodation into your hiring plans early gives you time to explore the options properly rather than making a rushed move under pressure.

Putting a Number on It

A practical approach is to build a simple annual cost sheet for each role, listing salary, employer PRSI, pension contributions, leave cover, equipment, software, insurance, training and a share of premises costs. Many owners are surprised by how far the total sits above the advertised salary. Comparing that figure with the revenue or capacity the role will generate gives a much clearer view of whether the hire makes financial sense, and when.

Plan Before You Hire

Taking on staff is often the right move for a growing business, but it works best when the full cost is understood from the outset. Speaking with your accountant before recruiting can help you set a realistic budget, and if your plans mean you will soon need larger or different premises, it is worth starting that conversation early too.

If you would like to discuss buying or selling a property, contact us on or email david@creanaccountants.ie or visit creanaccountants.ie.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.