Statutory Sick Pay/ Minimum Wage and the Living Wage updates
Statutory Sick Pay (SSP) in Ireland will come into effect from 1 January 2023.
This provides organisations with time to prepare and ensure that their policies, contracts and systems are up to date to ensure that they will be in full compliance with the legislation from the start of next year. Even for organisations who pay above the SSP rates, it is advisable to review the wording of employment contracts and policies to ensure there will not be an entitlement to SSP in addition to what is already provided for. In summary, the changes are:
1. Employees will be entitled to paid sick leave for up to 3 sick days per year, increasing to 5 days in 2024, 7 days in 2025 and 10 days in 2026.
2. The rate of payment for statutory sick leave is 70% of normal wages, up to a maximum €110 per day.
3. To be entitled to paid sick leave under this new scheme, employees must be working for their employer for at least 13 weeks and they must be certified by a GP as unfit to work.
In addition to the above, it was announced that the minimum wage rate will rise from €10.50 per hour to €11.30 per hour, from 1 January 2023.
However, it should be noted that there is the concept of the Living Wage and while this is €12.90 for 2021/22, it too is set to rise to €13.10 per hour for 2023. Please note that this article does not form legal advice. It was written for informational purposes only.
Written by: Rosanne Edger MCIPD, HR Consultant