What Does The New Sick Pay Law Mean For Your Nanny?

Under a new government scheme, employees will be entitled to 10 days sick pay a year. Here, Jenny Diamond from Nanny Payroll, has this advice for families who employ childcare at home to help them plan ahead for the change.

The phase-in is designed to help ease the burden of the cost

In order to help you plan ahead for the additional cost, the new law is being phased in.

The changes will be phased in as early as 2022

The Irish Government’s new statutory sick pay scheme will be phased in over four years. Nannies will be entitled to three days per year in 2022, rising to five days payable in 2023, and seven days payable in 2024. You will eventually have to cover the cost of 10 sick days per year in 2025.

There is a daily threshold

You must pay sick at a rate of 70% of your nanny’s wage. This rate is subject to a daily cap of €110 to ease the financial burden on employers – particularly those who need to pay to replace sick staff at short notice (for example, by hiring a temporary agency nanny for the duration of your nanny’s sick leave). The daily cap equates to an annual salary of €40,889.16 and is based on 2019 mean weekly earnings of €786.33. This amount may be revised over time in line with inflation and changing incomes.

New nannies are exempt

The entitlement is subject to your nanny having worked for your family for a minimum of six months. In all cases, your nanny will have to obtain a medical certificate to avail of statutory sick pay.

Further government support is available

If an employee needs to take further time off once their entitlement to sick pay ends, your nanny may qualify for illness benefit from the Department of Social Protection subject to PRSI contributions.

The changes equate to a 3 per cent pay rise

The Government estimates that the new programme is equivalent to a 2.5 or 3 per cent pay rise, phased in over four years, with 0.8 per cent in the first year.

Nanny Payroll offers help and advice to families who employ nannies on navigating employment laws. We can help you incorporate the new law into your employment contract and manage your leave and sick pay obligations. Contact us today for more information.