Sick pay: Employees and the dilemma Covid has thrown up
For employees who become ill, where their employer does not provide for sick pay, they have to rely on the Department of Social Protection for sick pay. This is often a fraction of the wages which an employee would have earned.
At present employees are in a difficult position as regards sick pay. Some are lucky their employment will provide for sick pay. This is usually paid at the normal rate, less any statutory sick pay, which the employee would be entitled to. The difficulty for employees is that the period of sick pay, which will be covered by an employer, will be determined by their contract. For larger employers, it can be quite generous. For smaller employers, it may be non-existent.
The Government announced a new statutory sick pay scheme but that will not be introduced until the start of 2022. Those proposals will be to introduce a sick pay scheme for up to three days paid sick pay in 2022 at 70% of an employee’s normal wages but capped at a maximum of €110 a day. The effect, therefore, is that 70% of a normal day’s salary will only be payable to those earning a figure of €40,857 per annum. For higher-paid employees who do not have a sick pay scheme the actual percentage will be less than 70% of their normal wage.
