How Much Is Illness Benefit in Ireland?

Illness Benefit is a social welfare payment you receive when you experience an incapacity to work due to sickness.

How much is this weekly payment?

Let’s find out.

How Much Is Illness Benefit in Ireland?

Your amount of Illness Benefit depends on your weekly earnings for the relevant tax year.

The relevant tax year refers to the second-last complete tax year before the year you claim your entitlement. So, if you claim in 2023, the relevant tax year will be 2021.

People earning more money receive higher Illness Benefit during their sick leave, while those with lower weekly earnings receive a lower rate of payment.

You may also be eligible for an increase in the Illness Benefit amount if you have dependents.

The current weekly Illness Benefit rates in Ireland are as follows:

• If your weekly earnings are below €150

  • Maximum rate: €98.70

  • Increase for an adult dependant: €94.50

• If your weekly earnings are between €150 - €219.99

  • Maximum rate: €141.90

  • Increase for an adult dependant: €94.50

• If your weekly earnings are between €220 - €299.9:

  • Maximum rate: €172.30

  • Increase for an adult dependant: €94.50

• If your weekly earnings are €300 or higher:

  • Maximum rate: €220

  • Increase for an adult dependant: €146

Conditions for Adult Dependants

An adult dependant, in most cases, is the civil partner, cohabitant, or spouse of the person claiming Illness Benefit.

The exception: A person aged 16 or over who looks after the claimant's child and does not earn a weekly income of more than €100 may also qualify as an adult dependant of the claimant.

Do you have an adult dependant?

You can mention details of your adult dependant on your Illness Benefit application form.

You may then receive an increase to the weekly rate subject to these conditions:

• The adult dependant can’t receive Illness Benefits simultaneously.

• The adult dependant must not be in a different country or prison.

• The adult must not have weekly earnings of more than €310.

• If the adult dependant is your spouse or civil partner and you are separated, you will only qualify for an increase if you pay maintenance of over €138 per week. Your spouse or civil partner should not be cohabiting with someone else.

As mentioned in the table above, the amount you receive for an adult dependant can vary based on your weekly income.

Conditions for Child Dependants

If you have a child dependant, you stand to receive an increase to your Illness Benefit rate of payment.

The increase rates for a child dependant are:

• €42 for children under 12 years old

• €50 for children over 12.

Once again, the increase depends on a few conditions:

• The child dependant must reside in an Irish city like Dublin.

• The child dependant must not be in the legal custody of someone else.

• The child dependant must live with you.

• The child dependant must not already receive social welfare payments in their own right.

• If your child is over 18, you will still receive an increase until three months after they leave second-level education. (You can still claim the increase if your child starts work immediately after leaving school.)

You will only receive a half-rate increase for a child dependant if your spouse, civil partner, or cohabitant has an income of between €310 and €400 a week.

3 FAQs About Illness Benefit Payments in Ireland

Below are the answers to some questions about Illness Benefit in Ireland:

1. Is Illness Benefit Taxed in Ireland?

Yes, Illness Benefit is taxed in Ireland.

Additionally, increases for qualified adults are also subject to tax. However, these payments aren’t subject to Universal Social Charge (USC) and PRSI.

Any increases received for child dependants will not be taxed.

Illness Benefit will be paid in full without any direct tax deductions. Revenue will reduce your tax credits and rate band to account for the tax amount.

What are tax credits and rate bands?

Tax credits are given to people who regularly pay income tax and can be used to reduce the amount of tax payable. A rate band refers to the percentage of tax charged on your income.

2. Can Illness Benefit be Paired with Other Social Insurance Payments?

It’s possible to receive Illness Benefit at the same time as these other social welfare entitlements:

• Blind Pension

• Carer’s Benefit

• Disability Allowance

• Disability Benefit

• Widow’s, Widower’s, or Surviving Civil Partner’s Pension

• Domiciliary Care Allowance/Carer's Support Grant

• Working Family Payment (WFP) and Back to Work Family Dividend (BTWFD)

• Back to School Clothing and Footwear Allowance (BSCFA)

3. How Long Is Illness Benefit Paid For?

The duration of Illness Benefit payments depends on your illness period and social insurance(PRSI) contributions.

• You can receive Illness Benefit for a maximum of 2 years if you have at least 260 weeks of PSRI contributions since you started work.

• Illness Benefit will be paid for a maximum of 1 year if you have between 104 and 259 weeks of social insurance contributions since you began work.

Before your Illness Benefit payments are due to end, the Department of Social Protection (DSP) will contact you, letting you know of the end date.

You may receive Invalidity Pension after your Illness Benefit ends if you are permanently incapable of work.

Illness Benefit payments will end if you turn 66 during the payment period. Should this occur, you will be able to claim State Pension.

Use Kota to Manage Employee Benefits With Ease

Illness Benefit is among the many employee benefits for those out of the office due to poor health.

Other benefits, like health insurance for consultations, checkups, and surgeries, are also essential for employee welfare.

Want to offer employee health insurance as an employer in Ireland?

Use Kota!

Kota helps employers, self-employed people, and even freelancers manage health insurance and retirement benefits effortlessly. Once you have set up your contributions, employees can choose benefit packages based on their needs.

Join Kota to enrol, manage, and scale your benefits all in one platform!