Farmers should prepare for statutory sick pay for their employees, according to ifac.
“At a time when input costs for everything from feed and fertiliser to energy, transport, and labour are rising, it is particularly important that farmers with employees do not overlook making provision for statutory sick pay in their budgets for next year. This year’s introduction of statutory sick pay is an additional cost that farmers with employees need to include in their budget,” said Mary McDonagh, ifac Head of HR and Payroll Services.
When enacted, the Bill will ensure compensation for sick days at a rate of 70% of an employee’s wage, subject to a daily maximum threshold of €110. This applies to workers who don’t get compensation or are not entitled to illness benefits.
“Now is also the time to address situations where an existing employee’s wages are based on ‘take home’ rather than ‘gross’ pay. This is important because ‘net’ or ‘take home’ pay arrangements are difficult to budget and expose employers to potential additional costs if income tax rates rise or an employee’s tax credits change. Wages should always be agreed on a gross pay basis.”
The Sick Pay Bill will be implemented over a period of four years.