Guide to Sick Pay in Ireland

Your employer may have a sick pay scheme which pays a set amount of sick pay for a certain time period, conditions around sick pay will usually be outlined in your contract of employment. 

It’s important to understand your employer’s sick leave policy and follow the guidelines if you need to take time off work due to illness. 

Your entitlements and the procedures that your employer expects you to follow may differ depending on the duration of your illness. You will need to obtain a medical certificate from your GP which outlines your expected return to work. Your employer may require a weekly medical certificate if you remain on sick leave longer term.

Until the Sick Leave Act 2022 in Ireland, you had no statutory entitlement to sick pay from your employer if you were ill and unable to work. 

This legislation introduced a statutory sick pay scheme where all workers became entitled to paid sick leave. You are required to submit a medical certificate to avail of statutory sick pay.

You are entitled to 70% of your normal wage up to a daily maximum of €110 per day. The statutory sick pay entitlement in 2024 is 5 days, which is expected to rise to 7 days in 2025, and 10 days in 2026 currently, although this is under review currently.

These employment and social welfare protections can be a safety net and it is undoubtedly reassuring that basic provisions are in place should you or your family need them. 

However, they are unlikely to provide sufficient income to meet your medical bills and regular outgoings should you be ill or injured and unable to work and eligibility for these payments can vary depending on whether you are employed or self employed and how long you have been working.

Income protection provides a regular monthly income of up to 75% of your regular income or salary if you are unable to work due to illness or injury. 

With income protection you have flexibility around how much of your income you wish to insure, as well as the deferred period that you choose. Tailoring your policy will allow you to get the best cover for you, whatever your circumstances.

The deferred period is the period of time that you must first be unable to work before your income protection policy pays the monthly benefit. With most income protection insurers, you can choose a deferred period of between 4 weeks and 52 weeks.

Social welfare payments may not be paid at a high enough rate for you to meet your monthly financial obligations such as your mortgage payments, medical bills and health insurance payments, car repayments etc. not to mention family expenses such as food, utility bills, and other essentials.

Income protection insurance, depending on the cover you choose, can potentially provide a regular monthly income for the term of the policy should you be unable to work. 

You can choose how you spend these monthly payments and this flexibility will allow you to maintain your lifestyle and focus on your recovery. 

With most income protection policies, your premiums are guaranteed at the outset when you take out the policy, and premiums are also tax deductible which means that you can benefit from peace of mind at a lower premium than you might expect.