I propose to take Questions Nos. 1 and 2 together.
Ireland has been an outlier to date among wealthy OECD countries in not providing for any statutory paid sick leave. It is not right that people feel forced to go to work when they are sick and it’s not good for public health.
The Act is intended to provide a level of protection to employees who do not currently have employer-paid sick pay schemes, many of whom are low-paid and cannot afford to miss work. As a starting point, this scheme will cover the three waiting days before eligibility for Illness Benefit from the State. This is a progressive Bill and will ensure that all employees are better off and will have financial protection from day one of a medically certified absence.
Taking account of the current economic climate, the initial period covered by employers will be modest, but will increase incrementally. We must be mindful of imposing excessive costs on employers, many of whom have had a very difficult two years with Covid-19 related restrictions, Brexit related impacts and now the effects of the war in Ukraine. That is why we have taken an incremental approach with the scheme.
The legislation will provide for sick pay of 70% of gross salary up to a cap of €110 for 3 working days in a calendar year and will eventually go to 10 days.
As set out in the Regulatory Impact Assessment, the rate of 70% of gross pay is set to ensure excessive costs are not placed on employers, who in certain sectors may also have to deal with the cost of immediately replacing staff to cover the absence.
