Paul Murphy: Calls for 100% Sick Pay, Critiques 70% Plan
Paul Murphy spoke on 18 May 2022 about proposed sick pay rates and GP card eligibility, arguing for 100% sick pay and criticising the proposed 70% rate capped at €110 a day. He defended setting rates by ministerial order for flexibility and said he will push to expand GP card access in the next budget.
Sick pay critique
Paul Murphy said the government's proposed rate is too low - 70% of pay up to a maximum of €110 a day - and warned this would mean a maximum of €330 sick pay in the first year of the scheme. He said that is less than a week's worth of the enhanced illness benefit and that workers who are ill should not be punished by receiving less than their regular pay.
Rate-setting and flexibility
He argued against fixing rates and an earnings cap in the bill, favouring ministerial order to allow adjustments for inflation, changing incomes and future policy. He pointed to precedents such as adjustments to the national minimum wage and the calculation of payments for annual leave and public holidays being set by regulation.
Cost-sharing and employer impact
Paul Murphy said his medium-term plan sets the rate at 70% of basic pay capped at €110 a day, with the cap rising as incomes rise, and described a cost-sharing principle - roughly 70% employer, 30% employee, and state support via illness benefit. He also warned of high employer costs in covering sick staff and paying for replacement employees, which can create significant financial pressure on businesses.
GP card eligibility and budget ask
He highlighted that many low-income workers do not qualify for the GP card and said the solution is to increase eligibility significantly over the next couple of years. Paul Murphy said he will argue strongly in the forthcoming budget to prioritise low-income workers for GP card access, noting it is wrong that people in work on very low incomes must find €60 to see a doctor.
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So these group of amendments all deal with the rate of sick pay, and I think all our amendments are effectively trying to make a sick pay of 100%. The level of sick pay proposed by the government is low, let's be honest. 70% of pay up to a maximum of 110 euros a day. It means when we start, workers will get a maximum of 330 euros sick pay a year in the first year of the scheme. It's less than a week's worth of the enhanced illness benefit, which has been widely and rightly criticised for being too little for many low paid workers. The bottom line point being that if workers are genuinely sick, we're accepting that, and they have a right to sick pay, well then why should it be less than a regular pay? You can't call your bank and say, oh, do you mind if I pay 70% of the mortgage this week because actually I'm off sick? You can't call your grocery shop and ask for the same deal. You can't pay your childcare fees. People have lives built around certain income. If they're sick, they're presumably sick through no fault of their own, and they shouldn't be punished for that. Being sick alone is enough of a problem, and therefore we should be guaranteeing people 100% of their income so that they can continue to survive. Their families can continue to survive on that basis. I'll leave it there to give space for others. I know some stakeholders believe that the rate of payment and an earnings cap should be set in the bill itself. I don't agree with that. Setting the rates by ministerial order allows for greater flexibility and will allow the rate to be revised as necessary in line with inflation, changing incomes and, indeed, changing politics. For example, the national minimum wage is regularly adjusted by ministerial order. Similarly, the method of calculation for payments in respect of annual leave and public holidays is also set out by regulation. I think it's a sensible provision that allows the government and, indeed, future governments to respond to changing economic circumstances without having to make all changes by way of primary legislation. I've been clear in my medium-term plan, which is to set the rate at 70% of basic pay capped at €110 a day, but, obviously, that will rise now as incomes are rising. That makes sure that employers know what their obligations will be. It is the principle that we applied when we designed the pandemic unemployment payment, roughly 70% income replacement up to a cap. A minimum rate entitlement will also be set to ensure that all workers will receive a reasonable level of compensation, and that will be similar to an illness benefit. I think the principle behind here, by not making 100%, although that would be possible under the legislation, is that the costs should be shared, about 70% by the employer, about 30% by the employee, and then by the state through illness benefit, which is funded by employers and employees as well. I do need to bear in mind the very high costs that can arise for some employers, not just covering the 70% cost of somebody being out sick, but also the 100% cost of the person they have to replace, and perhaps the premium they have to pay on them on top of that. This can be a very high cost for an employer, particularly if they have to pay an replacement member of staff. On GP card eligibility, I take the point that is being made that many people on low incomes do not qualify for the GP card, and the solution to that I think is to increase very significantly eligibility for it over the next couple of years. That is something I will be arguing for very strongly in the forthcoming budget, because while I agree with universality when it comes to provision of health care, it is particularly wrong that people who go out to work every day and are in very low incomes have to find the €60 to pay the doctor. It is not right, and I hope there is something we can change in the budget. The focus up until now has been on children, but I think those on low incomes should be prioritised in the next tranche as well. Thank you. Thank you. Thank you.
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