Darren O'Rourke (Meath East, Sinn Fein)
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77. To ask the Minister for Enterprise, Trade and Employment if the number of statutory sick days will increase as per the timeline of seven days from January 2025 and ten days from January 2026; and if he will make a statement on the matter. [16987/24]

Peter Burke (Longford-Westmeath, Fine Gael)
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The Sick Leave Act 2022 introduced employer-paid, medically certified, statutory sick leave for the first time in Ireland. Commencing on 1 January 2023, the initial statutory entitlement was to up to 3 days’ sick leave, which increased to 5 days on 1 January 2024. As the Deputy has noted, this could potentially increase to 7 days in 2025, reaching 10 days in 2026.

Introducing statutory sick leave forms part of Government efforts to develop a more inclusive, as well as a more competitive, economy and fairer society. It is about making work pay and it was designed in consultation with the Minister for Social Protection and the Social Partners to roll out on a phased basis.

However I know that some businesses, particularly SMEs, are facing increased costs and have concerns about the cumulative impacts of increased labour regulation. That is why the Government has introduced a range of measures to support these businesses in adjusting to new measures to improve working conditions, along with more generally improving the cost competitiveness of firms.

It is important to note that statutory sick leave has been recognised by employer groups as beneficial to society and the economy. Statutory sick leave is demand-led. It offers a floor level of protection and does not interfere with existing, more favourable, sick leave schemes. It is also a valuable public health measure, reducing the likelihood of infectious disease transmission in the workplace.

Officials in my Department are carefully assessing the impact of statutory sick leave on businesses by sector and company size to inform the decision in respect of the timing and scale of the next phase in the rollout of the scheme, including the number of days sick leave covered.

Peter Burke (Longford-Westmeath, Fine Gael)
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The report referenced by the Deputy provides a commentary by ICTU on recent and forthcoming changes to working conditions that are planned, or have already been introduced, by this Government. Last month, a report by officials from several Departments, including my own - and all members of the Irish Government Economic and Evaluation Service (IGEES) - was published. This set out an assessment of the cumulative impact of these various measures, namely the transition to a Living Wage, Auto-Enrolment Retirement Savings, Parent’s Leave and Benefit, Statutory Sick Pay, an Additional Public Holiday, the Living Wage, and Remote Working.

In preparing this impact assessment, officials from my Department met with both employer and employee representatives, including ICTU, to ensure that their views were reflected in the report.

As outlined in the IGEES report, these improvements to working conditions will bring wider societal benefits and will serve to bring Ireland in line with other advanced economies. In addition, this Government has adopted an active approach in supporting Irish businesses across multiple crises over the last number of years, including the introduction of unemployment supports during the COVID -19 pandemic, the provision of financial supports to firms facing the implications of Brexit, and more recently, through the period of increasing overhead costs.

However, the IGEES report also recognises that businesses may face rising costs as a result of the introduction of these measures, in particular in the short term. Reflecting the findings of this assessment, a range of measures are being brought forward to assist businesses in adjusting to these increased costs as well as more generally to improve the cost competitiveness of firms. These measures include making available up to €15 million to Local Enterprise Offices to enable a top up payment of up to €3,000 in the Energy Efficiency Grant for businesses in the hospitality and retail sectors bringing the grant up to €8,000; preparation of an options paper on the application of the lower 8.8% rate of Employer PRSI contribution and the National Training Fund; a range of measures to reduce red tape and the administrative burden on business, including: an enhanced SME Test; accelerating the roll out of a fully functioning National Enterprise Hub with staff available to provide immediate advice and support to vulnerable firms.

My Department is fully committed to supporting businesses, while also ensuring that working conditions in Ireland are on a par with those of our trading partners. This is why these changes to working conditions are being introduced, alongside a suite of measures designed to support enterprise.