Tánaiste Leo Varadkar has today announced that the long-awaited statutory sick pay scheme will come into effect from January 1, 2023.
Under the terms of the Sick Leave Act, employees for the first time will be entitled to sick leave that is paid for by their employer. This sick leave payment will be further supplemented by illness benefit from the State.
Currently No Statutory Sick Leave Payments
Prior to the announcement of the Sick Leave Act, employees in Ireland were not entitled to any statutory sick leave payment from their employer. Although the law was passed by the Oireachtas in July of this year, it will not be implemented until the new year.
Speaking about the introduction of the new law on January 1st of next year, Mr Varadkar said: “Given the current challenging business environment and inflation in particular, I have concluded that the fairest and most appropriate approach is to introduce the entitlement on 1 January 2023.”
Ten Days in 2026
The new act will entitle workers to three days of statutory paid sick leave in its first year of operation in 2023. This will increase to five days in 2024, seven days in 2025, with a final amount of ten days to be covered in 2026.
Employers will be legally required to pay 70% of an employee’s wages when they are out sick, subject to a maximum daily amount of €110. It is further expected that this rate will be increased in order to keep up with inflation in the future.
*In contentious business, a solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement.*
