Sick Leave - Pay, Pensions & Tax
Page updated 19th June 2023
Social Welfare Illness Benefit
Staff on A1 PRSI may be entitled to social welfare illness benefit payments. Illness benefit paid to qualifying employees who are absent due to illness is a fully taxable source of income. In all cases employees are required to return Illness benefits to UCD, irrespective of their UCD Sick Pay Entitlement under the UCD Sick Leave policy.
Revenue has instructed that all taxable Illness Benefit paid to their registered employees is to be included with earnings in the calculation of payroll. Therefore, the Illness Benefit forwarded to University College Dublin is processed through payroll.
You can apply apply for Illness Benefit online at MyWelfare.ie if you have a verified MyGovID account and your GP has provided a medical certificate or alternatively, a paper form, called an IB1, can be obtained from your GP.
Please select the option to pay to the employer and make the benefit payable to the following account:
UCD Illness Benefit Account
Account Number: 13700208
Sort Code: 93-01-56
The UCD Employer’s registered number is 0079124M
All paper social welfare illness benefit certificates should be returned to Social Welfare Services, P.O. Box 1650, Dublin please ensure you have signed the declaration.
If your illness continues beyond the dates on your initial medical certificate obtain a social welfare illness benefit certificate, called an MC2. This must be done for as long as you are ill.
- You must apply for Illness Benefit payment within 7 days of becoming ill whether you qualify for the benefit or not.
- No payment is made from Social Protection for the first 3 days of illness which are known as waiting days.
- If any benefit is paid to you, you must forward it to the Payroll Office, Room 118, Tierney Building, UCD, as it must be processed through payroll. This applies without exception if you are in receipt of full pay or reduced pay from University College Dublin. Illness Benefit is not subject to the operation of PRSI or USC and once processed through payroll, employees will benefit from a reduced PRSI and USC charge.
Pensionability of Sick Leave
During periods of sick leave full pay, pension contributions will continue to be deducted as usual. During periods of sick leave on half pay, pension contributions will continue to be deducted on the pre-sick leave salary. This ensures that service will continue to be pensionable during this period. During periods of sick leave on nil pay, pension contributions will not be deducted and pensionable service will cease. Any period where a staff member is in receipt of Temporary Rehabilitation Remuneration will not be reckonable for pension purposes. On return to work, staff can consider purchasing breaks in service under the rules of the notional service plan, if eligible to do so. A quote can be obtained by emailing email@example.com.
Overpayment of Sick Leave
If an overpayment of salary due to, for example, the late arrival of a medical certificate, such an overpayment may be recouped from a member of staff’s future payment in accordance with the Payment of Wages Act, 1991. The member of staff will be notified of the amount in writing and recoupment schedule which will normally be within a maximum six-month period.
Contact HR Operations - Sick Leave
HR Operations have a dedicated channel (separate from the HR Helpdesk) for the management of all sick leave-related issues and queries. This dedicated channel for employees and managers limits access to queries to only those specifically involved in the management of sick leave and supports the importance of data privacy.
UCD Belfield Campus.