Written answers

Tuesday, 29 November 2011

Department of Social Protection

Social Insurance

9:00 pm

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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Question 248: To ask the Minister for Social Protection her views on concerns among employers, particularly small employers, regarding the suggestion that the first four weeks of a person's sick leave would have to be paid for by the employer; and if she will make a statement on the matter. [37065/11]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The question of introducing a scheme of statutory sick pay (SSP) is being considered as a means of bringing Ireland's approach to the management of illness related work absences into line with the rest of Europe and other OECD countries. Studies undertaken by the OECD indicate that Ireland is one of the very few countries that does not oblige employers to cover some element of sick absence pay notwithstanding that our employer PRSI contribution rates are also among the lowest in Western economies. SSP is also one of a range of options being examined with a view to addressing the significant deficit in the social insurance fund and meeting the commitments which this country has entered into with the EU/IMF/ECB to achieve substantial reductions in current spending.

The Deputy should note that experience of SSP in countries where it has been introduced indicates that it has a positive role to play in reducing absenteeism rates and the transition of employees from short term sick absence to longer term disability absence. These outcomes are positive for the individuals concerned, their employers and society.

A preliminary analysis based on estimates of absenteeism indicates that if a sick pay scheme with a duration of four weeks were to be introduced, it would add an average of between €1- €2 per employee per week to the costs of employment.

I am, of course, deeply conscious of the pressures faced by many employers, including those in the retail sector, and any statutory sick pay scheme would seek to take account of those concerns to the greatest extent possible.

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