Written answers

Tuesday, 27 February 2024

Department of Enterprise, Trade and Employment

Employment Rights

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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170. To ask the Minister for Enterprise, Trade and Employment the deductions payable by employers when they make a statutory sick payment to an employee; the reason these differ from those payable by the State under illness benefit; if he will amend statutory sick pay criteria to align them with illness benefit in relation to PRSI, USC and employer’s PRSI deductions; and if he will make a statement on the matter. [8621/24]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The Sick Leave Act 2022 provides for employer-paid sick leave, for medically certified absences, at the rate of 70% of an employee’s regular earnings, capped at €110 per day, for up to 5 days in 2024.

As payment is considered a form of wages from the employer to the employee, it is subject to the same tax and PRSI treatment as all wages. Any proposed amendment to the tax treatment of statutory sick leave payments is a matter for the Minister for Finance. Any change to treatment of such payments for the purposes of PRSI is a matter for the Minister for Social Protection.

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