Sick Pay

Statutory Sick Pay scheme is still at 5 days for 2025 and did not increase to the 7 days like it was planned to.

Pension

It is expected that from 2025, all organisations with employees in Ireland, regardless of size or structure, will be required to facilitate the Auto-enrolment Scheme for employees who meet the eligibility criteria, as well as those who choose to opt-in voluntarily. It will be mandatory for employers with eligible employees to contribute to automatic enrolment when it is launched.

Auto Enrolment is planned to come in September later this year. It is important that employers communicate to their employees what Auto Enrolment is about and the pro’s and con’s with having a private pension scheme compared to being enrolled to the Auto Enrolment scheme. It is good to get ahead of this before the Auto Enrolment comes into effect.

Employees will be automatically enrolled in the new pension scheme if they meet the following conditions:

  • they are between 23–60 years of age
  • they are not currently part of a pension plan
  • they earn €20,000 or more per year.

If an employee has previously contributed to a pension but is no longer doing so and they meet the other eligibility criteria, they will also be automatically enrolled.

  • Employees who earn less than €20,000 per year or are outside the age range of 23–60, may opt to join the pension scheme if they are not already part of a pension plan.
  • For every €3 an employee contributes to their pension fund, the employer will contribute an additional €3 and the Government will contribute €1. This means that for every €3 contributed by the employee, a total of €7 will be added to their pension account. Both the employer’s and the Government’s contributions are capped at a gross annual salary of €80,000.

 

Serious Illness during Maternity Leave

provides that mothers or birthing parents will be able to postpone their maternity leave for a period of between 5 and 52 weeks if they become seriously ill while on maternity leave and require ongoing treatment for their health condition.

Serious health conditions include both physical and mental illnesses that are certified by a doctor.

Mothers or birthing parents must notify their employer if they need to postpone their maternity leave. They must provide two weeks’ notice and submit a medical certificate.

 

Retirement

Under the Employment Equality (Miscellaneous Provision) Act 2015 employers may operate a contractual retirement age. The operation of the retirement age must be objectively justified.

There is a Code of Practice which outlines best practice in permitting employees to make a request to continue working past the employer’s retirement age, and the procedure for doing so.

Key points 

  • Employers must have a legitimate business aim that justifies the use of a contractual retirement age.
  • Legitimate aims can include intergenerational fairness, health and safety and the creation of a balanced age structure in the workforce.
  • Employers should provide clear information on how their retirement procedures work at recruitment and at regular times throughout employment.
  • An employee must be notified of the intention to retire them within 6 to 12 months of the date of retirement.
  • Requests to continue working should be considered carefully and should be submitted no longer than three month before the intended retirement date.
  • Reasons should be provided where a request to continue working has been denied.