Quick question on Illness benefit

billyhead

I was off work for a week on certified sick leave and also got an MC1 form filled out and send to my emplyers personnel section. Today I received an illness benefit slip in the post which has my employers as the payee stated on it and me as the claimant and then an amount of just under 100 euro due to be paid. Does this amount come out of my wages and py my employer or is it paid by the Dept of social protection and I don't get deducted this amount?

tatli_lokma

Do you get paid sick leave or not? This is important as it decides how the illness benefit will be handled.

If you get paid sick leave, then your employer will pay you your wages as normal, but social welfare have made the payment out to them so they will cash the cheque to lower their liability. Basically, the social pay you 2 dyas of illness benefit (1st 3 days are not claimable). Your employer pay you the balance so that you get your normal wages - i.e no deduction for being out sick. Your employer keeps the 2 days benefit. You get your wages as normal.

If you do not get paid sick leave and the cheque was made payable to your employer, they will then give you this amount in your wages - so for the week in question your employer will pay you just under €100.

The main reason why you get the cheque made payable to your employer is so that your PRSI and PAYE can still be deducted correctly. This is because since 1st Jan 2012 illness benefit is subject to tax, so it is easier all round if you let work cash the cheque, process it as part of your wages and then they can take any deductions.

here is some information from citizens information:
http://www.citizensinformation.ie/en/employment/employment_rights_and_conditions/leave_and_holidays/sick_leave.html