Willie O'Dea (Limerick City, Fianna Fail)
Link to this: Individually | In context

Question 68: To ask the Minister for Jobs, Enterprise and Innovation his views regarding the IMF staff report on changes to the sick pay regime; if he will outline his Department's liaisons with the Department of Social Protection on this matter; if employers groups have expressed concern at changes to the system; and if he will make a statement on the matter. [30262/12]

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

Earlier this year, the Minister for Social Protection, Deputy Joan Burton, who has policy responsibility for the Illness Benefit scheme, held a consultative meeting to discuss potential changes to the scheme in Ireland. Representatives from my Department and Forfás attended this forum, along with a number of business representative organisations. A Staff Report on Ireland's economic developments and policies was published by the International Monetary Fund on 15th June. The report encourages the reforming of sick leave policies in Ireland by requiring employers to pay for the first two to four weeks of illness. The views expressed in the paper are those of the IMF staff team and do not necessarily reflect the views of the Executive Board of the IMF. In fact, the report is inaccurate in commenting that the State pays sick pay from the outset of an illness when, in practice, no payment is made for the first three days of illness.

The cost to the State of sickness payments in the social welfare system is currently estimated to be approximately €900 million per annum. This includes payments to those with sick pay entitlements in both the private and public sector. Improved management of absenteeism across all sectors would obviously be welcome in terms of cost savings and increased productivity.

Employers' groups have publicly outlined their views on proposed changes to the sick pay scheme and have expressed concerns about the potential impact on enterprises. They have pointed out that there is already a high commitment to managing absenteeism at enterprise level. The Government will examine any proposals which the Minister for Social Protection may submit to it for consideration, and will have regard to the overall impact of the measures proposed.