Terence Flanagan
Ceist:452. Deputy Terence Flanagan asked the Minister for Social Protection the position regarding the introduction of a statutory sick pay scheme; and if she will make a statement on the matter. [58192/12]
Amharc ar fhreagraWednesday, 16 January 2013
Ceisteanna (452)
Freagraí scríofa
As the Deputy will be aware, the introduction of a scheme of statutory sick pay was considered in the context of Budget 2013 and while the decision was taken not to progress it at this time, there are a number of critical policy issues underpinning consideration of statutory sick pay and indeed social welfare reform generally that require attention. These include the on-going need to address the deficit in the social insurance fund from which illness benefit, amongst other insurance-based benefits and pensions, is paid. There is also an imperative to limit progression from short-term illness to long-term illness or disability as well as to incentivise the active management of absenteeism and to contribute more broadly to the enhancement of the health of workforce.
I am pleased to say that the Government has already taken some actions to address these policy issues.
Insofar as the social insurance fund is concerned, I introduced measures in Budget 2013 which are designed to increase the income to the Fund. From January 2013, the Employee's PRSI-Free Allowance of €127 per week (for those paying PRSI Class A, E and H) and €26 per week (for those paying PRSI Class B, C and D) has been abolished. Employees who earn €352 or less per week continue to have no liability to make a PRSI contribution and are not affected by the abolition of the weekly PRSI-Free Allowance.
In addition, the exemption from PRSI in respect of self-employed earned income (from a profession or trade) and any other unearned income e.g. rental income available to employees who pay PRSI at Classes B, C and D (a minority of the civil and public sector) is being abolished and all such income will now become liable to PRSI at the rate of 4%. The minimum annual PRSI contribution for people with annual self-employed income over €5,000 is being increased from €253 per annum to €500 per annum.
More widely, the Deputy will be aware of the reforms to the sick-pay arrangements which have been introduced by my colleague, the Minister for Public Expenditure and Reform and which will have a positive effect on absenteeism rates in the public sector.
On a general note, I can assure the Deputy that ongoing reforms of the social welfare system will continue to be introduced in ways which are sensitive to the pressures facing employees and employers and against the wider economic background which requires that overall spending on social welfare programmes is reduced while ensuring that the most vulnerable sectors of society are protected.