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New Statutory Sick Pay Scheme Announced

The Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar TD, announced further details last week regarding a new bill,  the General Scheme of the Sick Leave Bill 2021 ,to 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. It’s being phased in to help employers, particularly small businesses, to plan ahead and manage the additional cost, which has been capped.


Phasing of Paid Sick Leave:
  • 2022 – 3 days covered by employer

  • 2023 – 5 days covered by employer

  • 2024 – 7 days covered by employer

  • 2025 – 10 days covered by employer


Sick pay will be paid by employers at a rate of 70% of an employee’s wage, subject to a daily threshold of €110. It can be revised over time by ministerial order in line with inflation and changing incomes.

Employees must have a minimum of six month’s service with the employer to be eligible to receive statutory sick pay and it is also a condition of the scheme that the employee is medically certified as unfit to  work. The employer will deduct taxes in the normal manner.

As currently drafted, the bill does not provide for any further top up of salary for the employee and nor will any compensation scheme will be provided for employers to assist them with the costs of sick pay.

Organisations will need to plan for the potential cost impact of the scheme and also consider where changes to existing policies are required, once the new scheme is introduced next year.

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