Illness Benefit and Statutory Sick Leave in 2024
The Sick Leave Act of 2022 introduces a Statutory Sick Leave scheme applicable to employees with a minimum tenure of 13 weeks with their current employer. Starting January 1, 2024, the Statutory Sick Leave entitlement increases from 3 to 5 days. This implies that for any illness instance within a calendar year, employees will receive payment from their employer under the Statutory Sick Leave scheme for up to 5 days of their ordinarily scheduled work. If the first illness instance in a year is less than 5 days, the remaining entitlement can be applied to subsequent instances, capped at 5 days in total. Once Statutory Sick Leave days are used up, eligibility for Illness Benefit from the Department of Social Protection may commence.
The interaction between Statutory Sick Leave and Illness Benefit is crucial. If an employee qualifies for both and the first illness instance in 2024 exceeds the 5-day Statutory Sick Leave entitlement, the Illness Benefit payment begins from day 6. It's emphasized that one cannot receive both Statutory Sick Leave and Illness Benefit concurrently unless the illness instance doesn't surpass the 5-day entitlement. If the Statutory Sick Leave entitlement is exhausted, and subsequent instances occur within the calendar year, Illness Benefit payment initiates on day 4 after the standard 3 waiting days.
The Sick Leave Act permits employers to implement sick leave schemes superior to Statutory Sick Leave. Various factors, including duration and payment rate, determine the comparative advantage of an employer's scheme. These employer schemes, if more favorable, are not paid in addition to Statutory Sick Leave. According to Social Welfare legislation, employees under Statutory Sick Leave and those covered by better schemes are treated alike concerning their impact on Illness Benefit and Injury Benefit entitlements. The legislation stipulates that Illness Benefit and Injury Benefit won't be paid if an individual is receiving payment for Statutory Sick Leave or is covered by an employer's scheme offering better terms, especially up to 5 days.
Effective from January 1, 2024, Illness Benefit and Injury Benefit commence from day 6 of the claim if no entitlement has been utilized before the current instance of illness. The initial 3 days are considered waiting days, covered by Illness Benefit/Injury Benefit, and the subsequent 2 days are covered by the remaining 5 days of Statutory Sick Leave (or equivalent recognition of a more favorable employer scheme). If entitlement has been partially used before the current illness instance, payment may commence from an earlier date.