Statutory Sick Pay Details Announced
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 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. It can be revised over time by ministerial order in line with inflation and changing incomes.
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 Bill is primarily intended to provide a minimum level of protection to low paid employees, who may have no entitlement to company sick pay schemes. The Government has indicated that the legislation will expressly state that this does not prevent employers offering better terms or unions negotiating for more through a collective agreement.
Dublin Chamber will continue to engage with Government on this issue over the coming months to ensure that the voice of business is heard as the scheme is developed. You can read the details of the Government’s announcement here.
Meanwhile, Dublin Chamber has been actively engaging with members and policymakers in relation to flexible and remote working and what this means for the future of work, female labour participation, and work-life balance over the past year. Most recently, we made a submission to the Department of Children, Equality, Disability, Integration, and Youth Affairs in response to a public consultation on Flexible Working which can be found here.