Employers in Ireland should understand Illness Benefit payments to support their workforce during sickness. Learn how much Illness Benefit is and key FAQs.
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Illness Benefit is a crucial social welfare payment in Ireland that employees can claim when they cannot work due to sickness.
As an employer, understanding this benefit ensures you can better support your workforce during challenging times.
How much is this weekly payment?
Let’s find out.
The amount of Illness Benefit your employees get depends on their average weekly earnings for the relevant tax year
The relevant tax year refers to the second-last complete tax year before the year your employees claim their entitlement. So, if they make a claim in 2025, the relevant tax year will be 2023.
Employees earning more money receive higher Illness Benefit during their sick leave, while those with lower weekly earnings receive a lower rate of payment.
The 2025 weekly Illness Benefit rates in Ireland are as follows:
Your employee's Illness Benefit application form should state their average weekly earnings for the current tax year. They must also submit a medical certificate (Certificate of incapacity) from their doctor or general practitioner.
Find out what Illness Benefit Form your employees must submit and When Illness Benefit is Paid.
In most cases, an adult dependant is the civil partner, cohabitant, or spouse of the person claiming an Illness Benefit.
The exception?
A person aged 16 or over who looks after the claimant's child and does not earn a weekly income of more than €100 may also qualify as an adult dependant of the claimant.
If your employees have an adult dependant, they can include the dependant's details on their Illness Benefit claim form (IB1 Form).
This may result in an increased weekly Illness Benefit payment for the employee, provided these conditions are met:
As mentioned earlier, the amount your employees receive for an adult dependant can vary based on their weekly income.
Illness Benefit shouldn’t be confused with sick pay. Sick pay is the amount you, as an employer, pay when your employee cannot make it to the workplace due to sickness. As per Ireland’s Statutory Sick Pay (SSP) scheme, employees have a right to seven days’ sick pay a year in 2025.
If your employees have child dependants, they may qualify for an increase in their Illness Benefit payment rate.
In 2025, the increase rates for a child dependant are:
Once again, the increase your employees may get depends on a few conditions:
Remember: Employees may only receive a half-rate increase for a child dependant if their spouse, civil partner, or cohabitant earns between €310 and €400 a week.
Below are the answers to some questions about Illness Benefit in Ireland:
Your employees pay tax on Illness Benefit payments in Ireland. Additionally, any increases they receive for qualified adults are also subject to tax.
However, these payments are exempt from Universal Social Charge (USC) and Pay Related Social Insurance (PRSI), and employees aren’t taxed on the increases they receive for child dependants.
Note: Illness Benefit is paid in full without any direct tax deductions. Revenue reduces the employee’s tax credits and rate band to account for the tax amount.
What are tax credits and rate bands?
Tax credits are given to people who regularly pay income tax and can be used to reduce the amount of tax payable. A rate band refers to the percentage of tax charged on the income.
It’s possible for your employees to receive Illness Benefit at the same time as other social welfare entitlements, such as:
Have your employees been receiving Illness Benefit for at least 6 months?
Then, they can apply for a Partial Capacity Benefit (PCB).
PCB is an Irish social welfare scheme that allows employees to return to work or self-employment and continue receiving payments from the Department of Social Protection (DSP).
If employees don’t qualify for Illness Benefit, they may be eligible for Supplementary Welfare Allowance. It’s a weekly payment for those who don’t have enough income to meet their basic needs and the needs of their dependants.
The duration of Illness Benefit payments for your employees depends on their illness period and PRSI contribution record.
Before an employee’s Illness Benefit payments are due to end, the Department of Social Protection (DSP) will notify them of the final payment date.
If an employee is permanently incapable of work after Illness Benefit ends, they may qualify for Invalidity Pension.
Payments will also end if an employee reaches 66 years of age during the benefit period, at which point they may transition to the Irish State Pension (Contributory).
There are no paid days for the first three days of illness. These are known as ‘waiting days.’ This is put in place to see if you can recover before requiring any day of payment.
Illness Benefit is among the many Irish employee benefits for those out of the office due to poor health.
Other benefits, like health insurance for consultations, checkups, and surgeries, are also essential for employee welfare.
Want to offer employee health insurance as an employer in Ireland?
Use Kota!
Kota helps employers, self-employed people, and contractors manage health insurance and retirement benefits effortlessly. Once you have set up your contributions, employees can choose benefit packages based on their needs.
Join Kota to enrol, manage, and scale your benefits — all in one platform!
Trevor Gardiner QFA, RPA, APA in Insurance. With 23 years of experience in Financial Services, I have a strong passion for Health Insurance and Pensions.
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