Have you ever been sick in your full-time job and thought, “thankfully I can take these days off because I am permanent?” Imagine I told you that self Employed and contractors are entitled to sick pay in the event of illness or injury since 2017? Interested?
- Regulation in place
- Benefits for self-employed
- Who it affects
- Terms and conditions of the benefit
- Some changes since 2017.
Since the 1st of December 2017. The illness benefit or invalidity pension is paid weekly at a rate of €198.50, this can also be increased for a dependent adult and dependent children. Its main aim was to be provided to those who cannot work, it is not means-tested but it is taxable. It benefits the Self-Employed, such as small business owners, farmers, tradespeople, freelancers, contractors, and professionals.
Who can claim this? The Self-employed who now see themselves out of work due to illness will be able to claim the benefit, provided they have paid the relevant number of PRSI contributions. Self-employed workers pay PRSI at a rate of 4 percent. To qualify for the payment, applicants will need 260 PRSI paid contributions (Class A, E, H or S) since they started paying social insurance and 48 PRSI paid or credited contributions (Class A, E, H or S) in the last complete contribution year or the second last contribution year before the date of their claim.
Right now, the Self-Employed already receive benefits such as maternity and paternity leave and the state pension. The self-employed also have access to the Treatment Benefit Scheme, which is inclusive of free eye tests, dental examinations, and contributions towards the cost of hearing aids.
Peak Accounting Solutions Irelands Specialist in Accounting for contractors and self-employed. We want to make this as easy as possible and trust that we have this researched in case you have an unwanted sick day and need some assistance.
If you think contracting is a good path for you but you are deterred by administration tasks and business responsibilities, Peak can help take these jobs off your hand so you can focus on the job you love doing most. If you need more advice on working as a contractor, get in touch with us at email@example.com or visit us at https://www.peakaccountingsolutions.ie to find out more.