The Tánaiste has announced details of a new law that will give all workers the right to paid sick leave.
The Government’s statutory sick pay scheme will be phased in over a four-year period, starting with three days per year in 2022, rising to five days payable in 2023 and seven days payable in 2024.
Employers will eventually cover the cost of 10 sick days per year in 2025.
The new law is being phased in to help employers, particularly small businesses, plan ahead and manage the additional cost, which has been capped.
Sick pay will be paid by employers at a rate of 70% of an employee’s wage, subject to a daily threshold of €110.
The rate of 70% and the daily cap are set to ensure excessive costs are not placed solely on employers, who in certain sectors may also have to deal with the cost of replacing staff who are out sick at short notice.
The daily earnings threshold of €110 is based on 2019 mean weekly earnings of €786.33 and equates to an annual salary of €40,889.16. This amount can be revised over time by ministerial order in line with inflation and changing incomes.
Other features of the newly-published scheme state that an employee will have to obtain a medical certificate to avail of statutory sick pay, and the entitlement is subject to the employee having worked for their employer for a minimum of six months.
Once entitlement to sick pay from their employer ends, employees who need to take more time off may qualify for illness benefit from the Department of Social Protection subject to PRSI contributions.
Speaking about the new structures in place, Leo Varadkar said: “Ireland is one of the few advanced countries in Europe not to have a mandatory sick pay scheme and although about half employers do provide sick pay, we need to make sure that every worker, especially lower-paid workers in the private sector, have the security and peace of mind of knowing that if they fall ill and miss work, they won’t lose out on a full day’s pay.
"I believe this scheme can be one of the positive legacies of the pandemic as it will apply to illness of all forms and not just those related to Covid.
“I believe this reform is part of the pandemic dividend, the more inclusive economy and fairer society we are going to build once the pandemic is over.
