Joan Burton (Dublin West, Labour)

From 2008 to 2011, inclusive, total expenditure on illness benefit, invalidity pension and disability allowance was €10.6 billion, of which €3.6 billion related to illness benefit. It is estimated that expenditure on illness benefit in 2012 will be €847 million. The introduction of a scheme of statutory sick pay, whereby employers would directly meet the costs of illness-related absence for an initial period of illness, is being considered in the context of the need to reform the social welfare system to bring it into line with practices in other countries in this area, the need to address the deficit in the social insurance fund and the need to limit progression from short-term illness to long-term illness or disability, as well as in the wider context of enhancing the health of the workforce and addressing absenteeism levels.

Most other European countries, including all of our major competitors, oblige employers to pay for some sick pay costs. The extent of this obligation varies considerably. For example, it is two years in the Netherlands, 28 weeks in Northern Ireland and the UK, six weeks in Germany and nine days in Finland. I will circulate a table with the Official Report which illustrates in a concise format the statutory sick pay arrangements in a range of other countries.

A range of complex issues needs to be addressed before any decision can be taken by the Government on the possible introduction of such a scheme. These include the extent of coverage, the duration of payment, the rate of payment, compensation mechanisms for smaller scale employers and how to ensure such a scheme would be enforced and policed.

Earlier this year, I hosted a consultative forum on the feasibility and implications of introducing a scheme of statutory sick pay. This afforded an opportunity to key stakeholders to discuss the complex issues involved. All of these issues will be discussed in the course of the wider process associated with the preparation of the 2013 budget.

Additional information not given on the floor of the House.

Any decision which might be taken by the Government on the possible introduction of a scheme of statutory sick pay will be considered in that context. One of my priorities in this regard is to promote wellness in the workplace and to address levels of absenteeism generally.

Table: Statutory sick pay in a range of countries

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