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Parental Leave Expenditure

Dáil Éireann Debate, Wednesday - 13 May 2020

Wednesday, 13 May 2020

Ceisteanna (1192)

Bernard Durkan

Ceist:

1192. Deputy Bernard J. Durkan asked the Minister for Employment Affairs and Social Protection the estimated cost of increasing parental leave by an additional 26 weeks and increasing the rate of benefit paid by €50 to €295; and if she will make a statement on the matter. [4928/20]

Amharc ar fhreagra

Freagraí scríofa

The Minister for Justice and Equality has policy responsibility for parental leave. My Department has responsibility for the payment of parent’s benefit which is provided for in the Parent’s Leave and Benefit Act 2019.

Parent’s benefit is paid for 2 weeks per parent at a rate of €245 per week in respect of all children born on or after 1 November 2019. In line with the EU Work Life Balance Directive, parent’s leave and benefit will incrementally increase up to 9 weeks leave by 2024.

The scheme currently provides two weeks leave to both parents, including those who adopt a child, who are employees or self-employed and who take parent’s leave from their employment to care for their child. This is in addition to existing maternity, paternity and adoptive leave entitlements. The scheme supports parents during the first year of the child's life.

The full year cost of providing parent's benefit to both parents, at the current rate, for 1 week is €15.8m. A weekly rate of €295 would increase the cost of a week's benefit to €19m per annum for each additional week provided to both parents. The total cost of 26 weeks leave per parent, payable at a weekly rate of €295, would be an estimated €494m in a full year.

There would be further additional costs to the Exchequer as these estimates do not include the costs for staff substitution which would be a matter for the Minister for Public Expenditure and Reform. Decisions around the extension of this benefit as proposed would have to be considered in a budgetary context and the impact it would have on employers.

I hope this clarifies the matter for the Deputy.

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