Noel Grealish (Galway West, Independent)
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162. To ask the Minister for Enterprise, Trade and Employment if he will outline the expected impact of the Sick Leave Act 2022; the number of businesses that currently pay sick pay for a medically certified absence; the number of businesses that do not; the number of employees currently entitled and not entitled to sick pay for a medically-certified absence due to an illness; the employment sectors that are least likely to pay an employee who has a medically-certified certificate of illness; and if he will make a statement on the matter. [53425/22]

Leo Varadkar (Dublin West, Fine Gael)
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Employers are not required to report whether or not they have an employer paid sick leave scheme. Accordingly, it is not possible to provide definitive breakdowns of the proportion of employers who provide such leave. It is our understanding that sick leave is provided to about half of all employees through their terms and conditions. There is a big gap between public sector workers, almost all of whom get sick pay, and workers in the private sector where coverage is much less.

The Sick Leave Act will commence on 1 January 2023, and it will introduce a new statutory right to employer-paid sick leave. That will provide protection to employees who do not currently have employer-paid sick pay schemes, many of whom are low-paid and cannot afford to miss work. As a starting point, this scheme will cover the three waiting days before eligibility for Illness Benefit from the State. This is a progressive Act and will ensure, once commenced, that all employees will have financial protection from day one of a medically certified absence.

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 rate of 70% is set to ensure excessive costs are not placed on employers, who in certain sectors also have to deal with the cost of replacing staff who are out sick.

The scheme is being introduced on a phased basis in order to take account of the current economic climate and the existing financial pressures on businesses.

I would add that from 1 April 2023, eligibility for the GP access card will be further extended to people who earn the median household income of €46,000 or less.