Measures aim to cut absence from work

THE Government is cracking down on absenteeism which is recognised as a significant problem in both the public and private sectors.

Finance Minister Michael Noonan said tackling absenteeism in the workplace will save the exchequer €13 million annually — and please employers who will not have to fork out for costs.

The minister said new rules would remove obvious incentives to absenteeism.

“There is one provision in the tax code which may incentivise workers to absent themselves from work — where the employer makes up the balance of their pay, they may have more take home pay than if they were at work,” he said.

“By removing the existing tax exemption for the first 36 days of illness benefit and occupational injury benefit, this incentive to absenteeism is removed.”

The announcement was welcomed by the Small Firms Association (SFA).

SFA chairman Ian Martin said the budget measures would broadly support small business development.

Mr Martin welcomed the announcement that there would be no passing of the social welfare sick pay cost on to employers.

He said this would have cost businesses €150m and would have had a devastating effect on small companies.

Mr Noonan said that the Minister for Social Protection, Joan Burton, would next year bring forward proposals to deal with absenteeism in both the public and private sectors in more detail.

He said Ms Burton would engage in discussions with all interested parties and invite submissions from the public with a view to bringing forward a range of proposals.