Illness Benefit in Ireland: A Comprehensive Guide for Employers

Illness Benefit in Ireland is a public health service payment made to your employees who are too sick to work. 

But to be eligible for this payment they must meet certain requirements. 

As an employer, understanding how this benefit works ensures you can better support your team and align your sick leave policies effectively.

Read on to discover everything an employer needs to know about Ireland’s Illness Benefit.

What Is Illness Benefit?

Illness Benefit is a weekly social welfare payment your employees may receive if they cannot work due to sickness or ill health. 

Your employees can apply for Illness Benefit if they meet the requirements and are medically certified as unfit for work. (More on these requirements in a minute).

This payment is covered by Pay Related Social Insurance (PRSI) — a system of social insurance contributions paid by employees, employers, and self-employed individuals. 

But look:

Illness Benefit is independent of your company’s pay policy for sick leave.

If you offer sick pay to your employees, clearly communicate how it aligns with Illness Benefit. For example, specify if your policy covers the difference between their regular pay and the Illness Benefit amount.

Who Qualifies for Illness Benefit?

Your employees can apply for Illness Benefit if they:

• Are under 66 years old.

• Have been certified unfit for work by a medical doctor.  

• Submit their application within six weeks of illness. 

• Have sufficient social insurance (PRSI) contributions under one of the applicable classes (A, E, H, P). 

What’s the deal with the PRSI contributions?

Let’s discuss this now. 

1. PRSI Payment Contributions 

Employees may qualify for Illness Benefit if they have made at least 104 weeks of PRSI contributions since they first started working. 

They must also have 26 weeks of PRSI contributions paid in the relevant tax year and 26 weeks of PRSI contributions made in the tax year immediately before the relevant tax year.

Alternatively:

Employees must have a minimum of 104 weeks of PRSI contributions paid since they first started work AND a minimum of 39 weeks of PRSI contributions credited or paid in the relevant tax year.

Of the 39 weeks of PRSI contribution, 13 must be paid contributions. 

What happens if your employees don’t have 13 paid contributions in the relevant tax year?

In such cases, your employees can use the same number of paid contributions in one of these tax years:

• The current tax year

• One of the two tax years before the relevant tax year

• Their last complete tax year (before filing their claim for Illness Benefit).

2. Applicable PRSI Classes

To receive Illness Benefit, your employees must make contributions under one of the applicable classes:

• Class A: People employed under a contract in industrial, commercial, and service sectors earning €38 or more per week. This includes public and civil servants employed from 6 April 1995.

• Class E: Religious ministers in the employment of the Representative Body of the Church of Ireland.

• Class H: This includes all non-commissioned officers and enlisted defence personnel.

• Class P: Share fishermen or fisherwomen who classify as self-employed and who already pay PRSI under Class S (Self-employed people).

What’s more?

• Employees don’t need to have 13 paid contributions if they were getting:

  • Long-term Jobseeker’s Payment (Long-term Jobseeker’s Allowance)

  • Invalidity Pension

  • Carer's Allowance or Carer's Benefit 

• If your employees received Occupational Injury Benefit (OIB) right before they applied for Illness Benefit, they can choose to base their eligibility on either the tax year that was relevant to their OIB claim or the tax year that applies to their Illness Benefit claim.

  • For instance, if an employee received OIB in 2023 and applied for Illness Benefit in 2025, they can use either their 2023 or 2025 tax year to determine their entitlement to Illness Benefit.   

  • This way, if an employee missed their PRSI contributions due to injury in 2023, they can use their 2025 tax year instead.

• To be eligible for Illness Benefit, employees can rely on their Irish PRSI contributions and social insurance contributions from a country that falls under the EU regulations or the UK.

  • However, employees must have made their most recent social insurance contribution in Ireland. The contribution may depend on their pay period, whether monthly, fortnightly or weekly. 

  • For example, if your employee is an Irish citizen who has worked in Germany and the UK, they can count the social insurance contributions they’ve made in those countries towards their eligibility for Illness Benefit in Ireland — provided their last contribution was paid in Ireland.

What If Your Employees Don’t Qualify for Illness Benefit?

• They may still get PRSI credited contributions, which may help them qualify for future social welfare payments.

• They might also get a Supplementary Welfare Allowance (available when waiting for a decision on your Illness Benefit claim). 

How Much Illness Benefit Do Your Employees Receive? 

Illness Benefit is paid each week, and its rate depends on your employees average weekly earnings in the relevant tax year. 

What does that mean?

Average weekly earnings refer to your employees’ gross earnings before deductions in the relevant tax year, divided by the number of weeks they worked that year.

For instance, the Illness Benefit payment rate as of 2025 is €244 for average weekly earnings of €300 or more. 

Your employees may also be eligible for an increase in payments if they have an adult/child dependant. For further information, check out our guides on:

• How Much is Illness Benefit?

• When is Illness Benefit Paid?

How Long Can Your Employees Receive Illness Benefit Payments?

Illness Benefit is paid for a maximum of either:

• 1 Year (312 payment days): If your employees have 104 - 259 weeks of social insurance contributions paid since first starting work OR

• 2 Years (624 payment days): If your employees have got at least 260 weeks of paid social insurance contributions since they first started work.

If employees make a new Illness Benefit claim within 26 weeks of their last claim, it will be treated as one claim. 

Once your employees have used up their Illness Benefit and returned to work, they’ll need to make at least 13 PRSI contributions before they can qualify for Illness Benefit again.

However, in some exceptional cases, your employees may qualify for Illness Benefit again with fewer than 13 contributions if:

• They received Illness Benefit only for 1 year AND 

• Their additional contributions (after returning to work) bring their total contributions up to 260.

Periodic Review of Your Employees’ Illness Benefit

Your employees Illness Benefit claim will be reviewed occasionally, and they may have to undergo a medical assessment. 

Assessments are conducted by a medical assessor, a doctor employed by Ireland’s Department of Social Protection (DSP). They will give their opinion on whether your employee is fit for work.

When asked, employees must attend these medical assessments or risk suspension of their Illness Benefit. If the benefit is suspended, your employees can appeal the decision.

What happens when your employees’ Illness Benefit ends, but they still can’t work? 

In that case, they may be eligible for:

• Invalidity Pension: If an employee is ill and most likely incapable of working and satisfying the PRSI conditions.

• Disability Allowance: If employees don’t qualify for Invalidity Pension but have a disability that’s expected to last one year or more.

• Supplementary Welfare Allowance: If employees don’t qualify for any of the other Social Welfare payments and their income does not meet their needs.

• State Pension: If the employee’s Illness Benefit is ending because they are turning 66 years old. They’ll need to apply three months before their 66th birthday.

Do Employees Have to Pay Tax on Illness Benefit Payments?

Illness Benefit payments are taxable. 

Increases for qualified adult dependants are also taxable, but increases for child dependants are not taxed.

Remember:

Illness Benefit payments are made to your employees without any tax deductions. Taxation happens by reducing their tax credits and rate band. 

Revenue will consider the amount of Illness Benefit paid to your employees when they adjust their tax credits or review the tax of their spouse or civil partner — whether they’re employed or unemployed. 

What Other Social Welfare Payments Can Employees Claim with Illness Benefit?

Your employees can qualify for Illness Benefit and another social welfare payment at the same time. The social welfare payments that can be paid with Illness Benefit are:

1. Blind Pension

Provided your employees meet the qualifying criteria for both Illness Benefit and Blind Pension.  

To qualify for a Blind Pension, employees must undergo an eye test conducted by an ophthalmic surgeon. 

2. Carers Allowance

Half-rate Carer's Allowance can be paid with the Illness Benefit if your employees meet the qualifying conditions.

If employees receive an increase in their Illness Benefit for an adult dependant, the adult dependant may also qualify for a Half-rate Carer's Allowance.

3. Disablement Benefit

Your employees will need to meet the qualifying criteria for both benefits. 

However, the Disablement Benefit should not include an Incapacity Supplement.

4. Domiciliary Care Allowance/Carer's Support Grant

Both benefits can be paid if your employees meet the eligibility criteria for each.

5. Working Family Payment and Back to Work Family Dividend

If your employees are receiving Working Family Payment (WFP) and fall ill, they can continue to receive WFP with Illness Benefit for up to 36 days (6 weeks). 

Employees can continue to receive Back to Work Family Dividend payments with Illness Benefit for 36 days (6 weeks).

6. Widow’s, Widower’s, or Surviving Civil Partner’s Pension

If employees are getting full rate payments for these benefits, they CANNOT get Illness Benefit at the same time. 

But, if they’re getting a reduced rate of one of these payments and become ill, they may get a reduced rate of Illness Benefit. In this case, both payments together will give your employees the maximum rate of Illness Benefit entitlement.

How Can Employees Apply for Illness Benefit in Ireland?

Employees must apply for Illness Benefit within 6 weeks of becoming ill. If this is impossible and your employees have a good reason for the delay, their payment may be backdated. 

To apply for Illness Benefit, your employees can submit the online form at mywelfare.ie or complete the physical form and send it to the Illness Benefit Section’s office.

The documents required include the Illness Benefit Claim Form (IB1) and a Certificate of Incapacity for Work. Employees can get the certificate from their doctor.

Here are some resources to help your employees understand:

• Where to get the Illness Benefit Forms. 

• How to Contact the Illness Benefit Section.

Was your employee’s Illness Benefit claim denied? 

You can ask them to appeal to the Department within 21 days of getting the decision.

Closing the Illness Benefit Claim

Once your employees are fit to return to work, they must close their claim. 

Their doctor should mark their last Certificate of Incapacity for Work as final before they return to work.

If your employee can’t get the certificate marked, they must notify the Department’s Illness Benefit – Close My Claim section via email: [email protected]

Returning to Work Following Illness Benefit

Your employees cannot work while receiving Illness Benefit.

If they wish to start working while receiving Illness Benefits, they can apply for Partial Capacity Benefits (PCB). 

If approved, the employee’s PCB payment will replace their Illness Benefit payment.

What Is Partial Capacity Benefit?

It’s a social welfare benefit that allows your employees to work at a reduced capacity, provided they’ve been getting Illness Benefit for at least 6 months. 

Once the employee has applied for PCB, a medical assessor (a doctor employed by the Department of Social Protection) will assess their capacity for work. The rate of PCB paid will be determined based on this assessment.

Your employee can start work (including training, educational courses, or voluntary work) only once they have written approval from the Department of Social Protection.

Can Your Employees Transition from Illness Benefit to Invalidity Pension?

After 468 days of Illness Benefit, your employees will be medically assessed to determine if they still qualify for Illness Benefit or if they qualify for Invalidity Pension. 

Invalidity Pension is a weekly payment for those individuals who cannot work due to long-term illness or disability and are covered by social insurance (PRSI).

Are There Any Benefits for Carers?

If one of your employees has a full-time, live-in carer who left the workforce to provide care, they may qualify for Carer’s Benefit.

To qualify for this benefit, your employee must meet the following conditions: 

• Be over 16 years of age. 

• Be employed for at least eight weeks, consecutively or not, in the previous 26-week period of commencing Carer's leave.

• Worked for a minimum of 16 hours a week or 32 hours a fortnight within the eight week period.

• The care recipient must have a disability that meets the full-time care and attention requirements outlined in the Social Welfare Consolidation Act 2005 (section 99). 

• Their maximum salary is €450 a week after taxes (from July 2025 onwards, this will go up to €625).

• They meet the social insurance (PRSI) contribution conditions — at least 156 contributions paid at any time since they started working AND one of the following:

  • 39 contributions paid in the relevant tax year  OR

  • 39 contributions paid in the 12-month period before the start of Carer's Benefit OR

  • 26 contributions paid in the relevant tax year and 26 contributions paid in the year before that.

• They pay PRSI contributions at Class A, B, C, D, H and E. 

Child carers may qualify for Carer’s Benefit if the childcare recipient receives Domiciliary Care Allowance (DCA).

Carer’s Benefit Payment Rates

• €261 a week for one care recipient.

• €391.50 a week if you care for two or more persons.

• Carers with children may be entitled to apply for an Increase for a Qualified Child.

How Can Employees Apply For Carer’s Benefit

If your employee is applying for Carer’s Benefit they should do so at least 10 weeks before leaving work. 

They must fill in the application form, which includes a doctor’s report signed by the person being cared for. 

The employee can then send the filled application form and the relevant supporting documentation to:

Carer's Benefit Section

Address: Social Welfare Services Office, Government Buildings, Ballinalee Road, Longford, Co. Longford, N39 E4E0

Website: www.gov.ie

Email: [email protected]

Phone number: 0818 927770

If your employees need more information, you can ask them to contact their Social Welfare Branch Office, Intreo Centre or the Social Welfare Services Office. 

Hassle-Free Employee Health Insurance in Ireland with Kota

As an employer, supporting your employees' well-being goes beyond Illness Benefit. 

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We partner with Irish Life Health to offer flexible health insurance plans covering hospital care, outpatient services, and routine health check-ups. 

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