Dáil Éireann Debate, Thursday - 1 March 2012
27 Deputy Charlie McConalogue asked the Minister for Social Protection her plans to change sick pay arrangements; the revenue implication of this decision; and if she will make a statement on the matter. [11728/12]
View answerThe question of introducing a scheme of statutory sick pay, whereby employers would directly meet the costs of sick absence for an initial period of illness, is being considered in the context of the need to reform the social welfare system to bring it into line with practices in other countries in this area; the need to address the deficit in the social insurance fund; the need to limit progression from short-term illness to long-term illness or disability; and in the wider context of enhancing the health of the workforce and addressing levels of absenteeism. No decisions have yet been taken by Government on the introduction of a statutory sick pay scheme. Before any decisions can be taken, there are a range of complex issues which need to be examined in detail.
I hosted a consultative seminar on the feasibility and implications of introducing a scheme of statutory sick pay on 20th February 2012. This seminar was attended by a broad range of key stakeholders and afforded an initial opportunity to discuss the complex issues involved. I envisage that further consultations will be held with stakeholders in order to further develop the debate on these issues.
The level of savings which would be generated from a statutory sick pay scheme would depend on how the scheme is structured, particularly in relation to the duration of payment, rate of payment, extent of coverage and number of "waiting days" for which no payment is made. By way of illustration, however, it is estimated that savings of €23 million would arise if illness benefit was not payable for the first week of illness, rising to some €89 million if it was not payable for the first four weeks of sick absence.
