Statutory Sick Pay Scheme

Statutory Sick Pay Scheme

Statutory sick pay scheme will come into effect in Ireland from 1st Jan 2023. The statutory sick pay scheme, as approved by the cabinet will be phased in over a five-year period with:

• initial statutory entitlement to sick pay for three days per year, rising to five days in 2024, seven days in 2025, and 10 days in 2026.
• A rate of payment for statutory sick leave of 70% of normal wages to be paid by employers (Capped at €110 per day).
• A right for workers to take a complaint to the WRC where they are not provided with a company sick pay scheme.

Whereas in the past Irish employees have had no statutory right to be paid while on sick leave, soon employers will be required to pay 70% of an employee’s wage on a sick day up to a maximum €110 per day.

Employees will be entitled to 10 days of paid sick leave every year from 2026 under new legislation. The Sick Leave Bill follows up on Tánaiste Leo Varadkar’s announcement in June 2021 of his plan to give all workers (full time and part time) the right to paid sick leave.

Employers who provide for paid sick leave should review their current policy to ensure it meets the minimum conditions of the Bill and amend accordingly.

The rate of 70% is set to ensure excessive costs are not placed on employers, who in certain sectors may also have to deal with the cost of replacing staff who are out sick at short notice.

This Scheme compares favourably with the Sick Pay Scheme in Northern Ireland which currently pays only £99.35 per week.

It may also be worth noting that an employee must 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 13 weeks.

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