The planned increase in Statutory Sick Pay (SSP) for 2025 has been paused, giving businesses more time to adjust before further expansions to the scheme. This decision comes as a relief to many employers who have been navigating rising operational costs, including higher PRSI contributions and wage pressures.
Under the Sick Leave Act 2022, Ireland introduced a phased approach to employer-paid sick leave, starting in 2023. The plan was to increase statutory sick pay entitlements as follows:
2023 – 3 days of paid sick leave:
2024 – 5 days of paid sick leave:
2025 – (Paused) Planned increase to 7 days:
2026 – Target increase to 10 days:
With the 2025 increase now delayed, employees will remain entitled to 5 days of statutory sick pay per year.
The Government’s decision to postpone the increase is driven by several factors, including:
✔ Business cost concerns – Rising wages, PRSI increases (Oct 2024), and inflation have put financial strain on employers.
✔ Economic uncertainty – A cautious approach allows businesses to adjust before further statutory obligations are introduced.
✔ Balancing employer and employee needs – While ensuring worker protections, policymakers recognize the challenges businesses face in absorbing additional costs.
✅ No change for 2025 – The statutory sick pay entitlement remains at 5 days.
✅ Employers must still cover sick pay – Employees who qualify are entitled to 70% of their daily wage, capped at €110 per day.
✅ Sick pay is separate from PRSI Illness Benefit – Employers should ensure they understand the difference between statutory sick pay and state supports.
✅ Future increases are still expected – The Government has not ruled out revisiting the plan to extend sick pay to 7 days in 2026.
While the pause gives businesses breathing room, it’s a good time to:
🔹 Review sick leave policies – Ensure they align with statutory requirements.
🔹 Budget for potential future increases – Although paused, extended sick leave could still be introduced in later years.
🔹 Educate managers and HR teams – Keep employees informed about their rights while ensuring compliance with the current framework.
🔹 Monitor policy updates – The Government may revisit the decision in 2025 or 2026.
Finally
The delay in increasing statutory sick pay is a welcome development for many employers, especially amid rising payroll costs. However, businesses should still stay informed and prepare for future changes.
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