sick pay scheme starting September 2022

The Statutory Sick Pay Scheme comes into legislation in September 2022. So what do you need to know?

What is the Statutory Sick Pay Scheme?

There is currently no obligation on employers to pay employees for sick leave under the law unless stated in their contract of employment. With the introduction of the Sick Pay Scheme, employers will be obliged by law to pay employees for a minimum number of sick days, starting with 3 days from September and increasing in the coming years. The legislation is designed to protect low-income workers who become ill or are injured and cannot work.

What currently happens?

Unless an employer pays for sick leave, a sick employee must apply for illness benefit through the dept. of social protection. A minimum contribution of PRSI is required, and the payment is capped at €203 per week. There is no entitlement for the first 3 sick days.

So what do the changes mean?

An employer will be required to pay 70% of wages to the employee, full or part-time worker from the first day of illness to a maximum of €110 per day, for 3 days.

Increases in the future

2022- 3 days

2024- 5 days

2025- 7 days

2026- 10 days

All other leave entitlements are retained and protected.

What does this mean for employers?

Employers must continue to keep full & accurate employment records, including those relating to illness & injury absenteeism. Employers must also make provisions in advance for the added cost to the business. While there is the added cost in wages, it is hoped that the bill will reduce the impact and cost of long-term absenteeism in the workplace, and having to recruit and train temporary staff.

If you’d like to get organized in advance of the introduction of this legislation or have a query regarding long-term illness in your workplace, please get in touch.

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