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New statutory sick pay rules in Ireland

At the very start of this year - on January 1, 2023 - the Sick Leave Act 2022, came into effect in Ireland. This marks a major change for employers and employees. Prior to this act, employers had the discretion to provide sick pay to employees, but now, for the first time, there is a mandatory employer Statutory Sick Pay scheme in place.

The sick pay year runs from January 1st to December 31st, with employees entitled to take sick days as consecutive or non-consecutive days. The initial entitlement in 2023 covers up to 3 days. This will gradually increase: reaching a maximum of 10 days by 2026.

Statutory sick pay will be equal to 70% of an employee's normal wages, capped at €110 per day. The average gross salary in Ireland is approximately €1,000 Euros, so this means that employees will continue to receive a significant portion of their normal wages while they are sick, providing them with some financial security.

The introduction of the Sick Leave Act 2022 is a positive step towards ensuring that all employees have access to paid sick leave, regardless of their employer's policies.

Employers that already provide more beneficial sick pay rights are allowed to continue with their existing policies.

If you haven’t updated your sickness absence policies, it’s time to do so!

At PEO Legal, we provide legal and compliance advice for professional employer organisations and staffing companies around the world. If you want advice on global statutory sick pay, or any other point of cross-border law, contact us, today.


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