Self-employed and illness benefit/sick pay
A major concern for someone going contracting is what happens if they get sick? Will they be covered if they go to the hospital? It is always is a very good idea to have private healthcare and especially if you are a contractor – although with the new rules in place with the revenue it is getting easier to access public health services. Also, self-employed and contractors are entitled to sick pay in the event of illness or injury since 1st of December 2017. The illness benefit or invalidity pension is paid weekly at a rate of €198.50, with the possibility of increases for a dependent adult and dependent children. It’s provided to those who cannot work due to long term illness or disability and is not means tested but is taxable.
It benefits the Self-Employed, such as small business owners, farmers, tradespeople, freelancers, contractors, and professionals. The Self-employed who now seem themselves out of work due to illness will now 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 per cent, typically less than that of employees (4%+ employer’s PRSI @10.75%). 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.
Accounting Pro is Ireland’s premier contractor accounting service. We are here to help, the busy contractor and company, with all your accounting and payroll needs. We are both an umbrella company and umbrella corporation and we can create your limited company. We are experts in contractor pensions, contractor health insurance, illness and sick benefit for the self employed and contractor expenses. To learn more about what we do please review https://www.accounting-pro.ie/ and contact us by email: firstname.lastname@example.org or phone us 01 6933370. For the UK see Accounting-Pro UK. “Self-employed and illness benefit/sick pay” is an article written by Accounting-Pro Ireland for the benefit of everyone. Feel free to share it but please give attribution on a CC BY-SA license.