Dáil Éireann Debate, Tuesday - 19 June 2012
297 Deputy Seán Kyne asked the Minister for Social Protection if, in view of the reform of the statutory sick-pay scheme currently under consideration and to reduce any overbearing burden on employers which could threaten job retention and creation, a portion of the PRSI/universal social charge fund could be ring-fenced to cover assistance for workers who fall ill; and if she will make a statement on the matter. [29705/12]
Amharc ar fhreagra314 Deputy Nicky McFadden asked the Minister for Social Protection to outline the proposed new arrangements for sick pay in the PRSI scheme; the impact on private sector employers if any proposal to impose an obligation on employers to pay staff for the first three days of sick leave is implemented; and if she will make a statement on the matter. [29099/12]
Amharc ar fhreagra315 Deputy Michael McGrath asked the Minister for Social Protection if she plans to compel employers to pay a certain amount of illness benefit in respect of their employees; if she has consulted with the Department of Jobs, Enterprise and Innovation on her proposals; and if she will make a statement on the matter. [29101/12]
Amharc ar fhreagra349 Deputy Anne Ferris asked the Minister for Social Protection her plans to alter sick pay arrangements; and if she will make a statement on the matter. [29223/12]
Amharc ar fhreagraIt is proposed to take Questions Nos. 297, 314, 315 and 349 together.
The 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. A range of complex issues need to be addressed before any decision could be taken by Government on the possible introduction of a statutory sick pay scheme. These include the extent of coverage; the duration of payment; the rate of payment; compensation mechanisms for employers where appropriate; and how to ensure that a scheme of statutory sick pay would be enforced and policed.
The impact of introducing a statutory sick pay scheme would be contingent on how all of these issues are addressed and how such a scheme would ultimately be structured. I am acutely conscious of the pressures facing employers and in particular, the smaller and medium-sized enterprises. A preliminary analysis based on estimates of absenteeism in the private sector indicates that if a sick pay scheme with a duration of four weeks were to be introduced, it would add about €1 per week per employee to the costs of employment. In the event that a scheme were to be introduced, the Social Insurance Fund would continue to provide supports for extended periods of illness.
I hosted a consultative seminar on the feasibility and implications of introducing a scheme of statutory sick pay in February 2012. This seminar was attended by a broad range of key stakeholders and afforded an opportunity to discuss the complex issues involved. A report of that seminar was published on the Department's website today and provides the basis for further consultations with key stakeholders. The analysis of the potential impact will continue to be developed and refined as the consultations with key stakeholders, including other relevant Government Departments, progresses.
