Illness Benefit - taxed?

sillysocks

Just wondering if anyone knows whether illness benefit is taxed before you receive it? I'm on the benefit for a few weeks and got a letter saying I was approved for 188 per week, but when I get the benefit slips I only get 125 per week. Im wondering if the difference is down to tax or something else.... Anyone any ideas?

I get paid from work while I'm off but they deduct the illness benefit entitlement before they pay me.

I know I can ring them but guessing it might be hard to get through and someone here might have a quick answer.....

Sue Ellen

Illness Benefit is taxed but not before you receive it. It forms part of your taxable income for the year. The €125 you received would only be for a 4 day period. A full week will be €188.

sillysocks

Thanks! Will have to keep an eye on my pay slip and see how many days work deduct then.

eastbono

You dont get illness benefit for the first 3 days... these are called waiting days.

sillysocks

Thanks, had already discounted those - the 125 was for subsequent weeks.... Will wait and see what my payslip says and can see then.

eastbono

It would also depend on what your average weekly earnings were in the governing year. Illness benefit is not taxed at source it is up to you to declare it to revenue. €125 seems an odd figure. Have a look through the following link its gives the rates paid for average weekly earnings.
http://www.welfare.ie/en/Pages/345_Illness-Benefit.aspx