How is Sickness Benefit Deduction calculated?

Talexio Support
Talexio Support
  • Updated

Overview

When the employee is not of retirement age and they have booked 4 consecutive days of sick leave, they are eligible for Sickness Benefit Deduction in the month where the last day of the four consecutive days falls. Read more about this deduction here: Sickness Benefit

 

Permissions

You need the 'Request leave' permission in order to book sick leave. You will need to ensure that the Leave Types are set for employees to book sick leave. If not, then an admin with 'Request leave' permission can book sick leave regardless of the leave type settings. 


Sickness Benefit Deduction:

  • Sickness Benefit Deduction:

    • is paid on a daily basis.
    • is based on the Employee Details setting “SSC Benefit Status” for which the options are Single and Married.
    • is given pro-rata based on job schedule hours (example: Full timer who works 40hours/week and are set on Single Benefit status get €15.91 per day. Those on 20hours/week get €7.96/day and so on).
    • For employees on irregular/casual hours, we take the average weekly hours worked in the past 13 weeks and pro-rate this against a 40 hour week’s entitlement.
    • if Sick Half pay is booked, the deduction is deducted by half (example: Full timer who works 40hours/week and are set on Single Benefit status get €7.96 per day. Those on 20hours/week get €3.98/day and so on)
    • if Sick Unpaid is booked, no sickness benefit deduction is deducted.
    • it is not deducted on Public Holidays unless the employee is set to work on a Public Holiday based on their job schedule. 
    • it is not deducted on Sundays.
    • it is given when sick leave booked for a day is equal to or more than the daily number of hours as per job schedule  (Ex. Daily number of hours according to job schedule is 8 hours, but booked 10 hours of sick leave).
    • It is not given when sick leave booked for a day is less than the daily number of hours as per job schedule (Ex. Daily number of hours according to job schedule is 8 hours, but booked 4 hours of sick leave)
    • “Days” are based on the job schedule of the employee. Therefore if the employee is set to work on Mon, Wed and Fri and the employee booked sick leave on Mon, Tue, Wed and Thurs, the employee will not be eligible for Sickness Benefit.
    • It is a Taxable deduction, therefore it is deducted from the Net after tax is calculated.

Payroll

After booking at least 4 consecutive days of sick leave, the sickness benefit deduction is added to the employee's payslip. The below tables demonstrate how the system calculates the Sickness Benefit Deduction based on the Job Schedule Hours and Working Days:

In the above example, the leave was taken over 5 consecutive days. Therefore the Sickness Benefit Deduction applies from Day 4, Thursday.

 

In the above example, the leave was taken over 4 consecutive work days. Wednesday in this example is a Non-Working Day according to their Job Schedules. Therefore the Sickness Benefit Deduction applies from Day 4, Friday.

The sickness benefit deduction is automatically added to the payroll. If you click on the tool tip button, you will see a breakdown of the workings. 

 

Official Sources:

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