Dealing with chronic illness or disability is challenging. 

Fortunately, Ireland offers support through Invalidity Pension and Disability Allowance.

Invalidity Pension (IP) provides financial support for those unable to work due to long-term illness or disability. 

Disability Allowance (DA) offers financial aid to individuals with work-impacting disabilities, independent of their work history.

So how are they different and which should you apply for?

Let’s look at how Ireland’s Invalidity Pension and Disability Allowance compare across 7 key factors.

Invalidity Pension vs. Disability Allowance: A Comparison Across 7 Key Factors

Let's first understand the core difference between an Invalidity Pension and Disability Allowance.

 as a financial help for those who, due to their poor health, are unlikely to be able to work again. The benefit addresses more permanent or long-term incapacities.

Conversely, Disability Allowance is a means-tested payment for people with disabilities that may still permit limited employment. This means DA covers a broader spectrum of medical conditions.

Let’s get on with the differences between the two social welfare benefits.

The key difference between eligibility for these benefits lies in Pay-Related Social Insurance (PRSI) contributions. 

 for an extended period (typically over 12 months) may be eligible to transition to Invalidity Pension, provided they meet the medical criteria for Invalidity Pension.

Here are the key differences between Invalidity Pensions and Disability Allowances regarding employment and earnings.

Here's a quick breakdown of applying for Invalidity Pension and Disability Allowance:

A. Application Process for Invalidity Pension

You can also reach out to the Invalidity Pension department through phone. Find out 

Invalidity Pension contact number and other details here

B. Application Process for Disability Allowance

Both Invalidity Pension and Disability Allowance offer additional payments for dependent adults (civil partner or spouse) and children. Here’s a quick rundown of the rate of payment for each.

 in Ireland introduced a one-time lump sum payment of €400 for recipients of Disability Allowance, Invalidity Pension, and Blind Pension.

Invalidity Pension and Disability Allowance beneficiaries may qualify for extra social welfare benefits (subject to eligibility), such as:

Additionally, Invalidity Pension or Disability Allowance can give you access to these specific benefits. The entitlement to these benefits is subject to eligibility criteria.

Here's a concise summary of the taxation status for Invalidity Pension and Disability Allowance in Ireland:

Invalidity Pension is subject to income tax, but exempt from PRSI and Universal Social Charge (USC).

The Department of Social Protection pays the pension without deducting tax but notifies Revenue of the taxable amount for income tax purposes. This means you are not required to take any action for the correct tax payment.

 subject to income tax, PRSI, and USC in Ireland. 

Streamline Your Employee Health Insurance Management with Kota

Invalidity Pension is a weekly payment for people permanently unable to work due to illness or disability. On the other hand, Disability Allowance is a weekly allowance for individuals with limited work capacity due to disabilities. 

You can only get one of the two benefits, depending on your health condition and work capacity. 

Sure, you can get additional healthcare-related social welfare benefits, but they may not be sufficient to cover your medical costs. 

to secure your Irish staff’s healthcare needs.

With Kota, you gain access to a single digital platform that simplifies and automates the enrollment and management of 

 to start enrolling your team in minutes!

Invalidity Pension Vs Disability Allowance: What’s the Difference?

We are excited to announce that today, we are now offering life assurance to companies on Kota, with Ireland being our first available market.

Since Kota’s origins, launching life assurance has been a key milestone on our roadmap. Alongside health insurance and retirement benefits, we see it as an 

 part of the employee benefits package. 

Today, after a huge amount of effort by our product and expansion teams, we are delighted to make life assurance available to companies on Kota.

In Ireland, 95% of companies offer some form of life cover to their teams. This is a high proportion, but it comes as little surprise when the benefits of life assurance offerings are understood.

Having life assurance cover gives peace of mind that in the event of your death, your loved ones will be looked after. Many employers not only see this benefit as a fundamental component of employee well-being but also know that attracting and retaining talent would be challenging without it.

We want to make it easy for companies to access and set up life assurance plans and pass the benefits on to their teams and families. 

Activating your life assurance plan with Kota can be done in just a couple of minutes. 

Once set up, you are covered so that in the event of your death, a multiple of your salary (usually x2 or x4) is paid tax-free to your estate and given to those per your Will (or to those by statutory inheritance rules).

, offering life assurance can actually be very affordable, and premiums can be offset against company taxes - an incentive by the government to encourage companies to prioritise offering the benefit. 

, there is no cost to the benefit, and you don’t attract Benefit in Kind charges, making it entirely employee-friendly.

 your Kota account and select Life Assurance in your benefits, then go through the no-obligation quote process.

Life Assurance is now available on Kota

Paternity leave in Ireland allows male employees to take time off work after the birth or adoption of their child.

You can begin your paternity leave any time 

 your child is born or adopted, regardless of whether you’re employed, self-employed, or a casual/part-time worker.

Keep reading to learn about Ireland's paternity leave policy and the benefits you're entitled to.

In Ireland, you can take paternity leave if you’re an employed, 

As per the Irish paternity leave policy, 

only one ‘relevant parent’ of the child

 can take paternity leave. This relevant parent can be the:

You can also take paternity leave if you and your partner 

When it comes to child adoption, paternity leave can be taken by:

after the birth or adoption of your child in Ireland.

You’re entitled to this two weeks' leave, regardless of the length of your service and the number of hours you’ve worked.  

leave entitlement will remain the same length,

 no matter how many children you have or adopt at the same time. 

Even if you have twins or adopt multiple children, you’ll only get two weeks of paternity leave. 

Do You Get Paid While on Paternity Leave?

 you while you’re on paternity leave. 

However, you may be entitled to receive paternity pay from your employer if it’s specified in your contract of employment or if your employer offers this as an extra benefit.

Even if your employer doesn't pay you while you’re on leave, 

you can receive a weekly payment from the Irish government

 by applying for the Paternity Benefit. 

The Paternity Benefit is a weekly social welfare payment by the Department of Social Protection (DSP) to employed and self-employed individuals on paternity leave. 

To qualify for this payment, you must have enough Pay Related Social Insurance contributions (PRSI contributions) and be on a certified leave from work. You can get the application form by contacting the Paternity Benefit section.

When Should You Inform Your Employer About Your Paternity Leave?

If you're planning to take paternity leave, notify your employer 

Depending on whether you become a parent through childbirth or adoption, there are specific details you’ll need to share with your employer:

What Are Your Employer’s Obligations While You’re on Paternity Leave?

As per Ireland’s Paternity Leave and Benefit Act 2016, your employer must follow certain rules when you’re on paternity leave:

Here are the answers to commonly asked questions about paternity leave in Ireland

1. Can You Take Paternity Leave In Case of Premature Birth or Stillbirth?

You can take paternity leave if your child is born prematurely or if there is a stillbirth.

2. Is it Possible to Postpone Your Paternity Leave in Ireland?

You can postpone your paternity leave if your child is 

 than the expected date of birth or if there’s a 

Paternity leave postponement is also possible if:

3. Can Fathers Get Maternity Leave in Ireland?

 (or adoptive leave in case of adoption) 

, such as if the mother of the child passes away. 

The duration of the maternity leave depends upon how soon after childbirth the mother passes away, and the leave 

Additionally, you also have the option to take your paternity leave immediately after the maternity leave ends, but 

 if you haven't already used your paternity leave.

4. Is Ireland's Paternity Leave Policy Good?

Ireland's statutory paternity leave policy offers two weeks’ leave to all male workers, allowing them time off work to 

The government also offers financial assistance to workers through Paternity Benefit payments and offers job security to employees on paternity leave. 

These are positive policies, especially when some countries don’t offer 

 like Sweden and Norway, the duration and payment of paternity leave in Ireland is relatively shorter and less generous.

For instance, in Sweden, new parents can share 480 days of parental leave with pay, beginning at 80% of their salary. Similarly, in Norway, fathers can get 15 weeks of full-pay paternity leave or 19 weeks of paternity leave at 80% of their pay, covered by their social security system.

Supplement Your Employees’ Paternity Leave with Kota’s Benefits 

The Irish government introduced the paternity leave policy to allow fathers to bond with their newborn or adopted child during the crucial early stages of development.

worker’s participation in this scheme is still low

 as many Irish employers don’t supplement the government-provided benefits with additional salary top-ups. 

Even if you can’t offer paid leave, you can still support your employees by providing comprehensive 

 and get your team covered in less than 5 minutes. 

What Is Ireland’s Paternity Leave Policy & Who Can Apply?

Looking to apply for Ireland's Illness Benefit?

It’s a lifesaver when you feel under the weather and can't work.

Whether you're navigating the initial application or addressing a declined claim, we're here to ensure a stress-free experience.

We’ll break down the Illness Benefit application process into easy steps to help you out.

How to Apply for Illness Benefit: Eligibility, Documents & Process

You must meet certain eligibility criteria to qualify for Illness Benefit in Ireland. 

For instance, you must be under Ireland’s pension age (66 as of January 2024) and meet specific PRSI (Pay Related Social Insurance ) contribution conditions (typically under Class A for employed people). 

Documents You Need to Apply for Illness Benefit

Assuming you're eligible, let's gather your essential documents:

Illness Benefit for Self-Employed Individuals

2 Ways to Apply for Illness Benefit in Ireland

 within 6 weeks of getting sick, or you may face delays and potential payment reductions. 

However, if you have a valid reason for applying late, the Department of Social Protection may backdate your payment.

The most straightforward method of applying for Illness Benefit is the online application. You will need a verified MyGovID account.

Alternatively, fill out the IB1 form and send it by mail.

Eligibility & Application Process for Irish Citizens Living Outside of Ireland

The process for applying for Illness Benefit as an Irish citizen abroad depends on whether you reside in or outside the EU.

What Should You Do If Your Illness Benefit Application Is Declined?

If your Illness Benefit application in Ireland is declined, don't give up immediately.

You may be able to address the issue through the following ways:

In the meantime, check if you're eligible for other social welfare payments, like:

We’ll answer some commonly asked questions on Illness Benefit:

1. How is Illness Benefit Different from Statutory Sick Pay?

Unlike Illness Benefit, which is funded by the Department of Social Protection and based on your PRSI contributions, Statutory Sick Pay (SSP) is paid by employers.

Starting January 2024, an employee can take five days of Statutory Sick Pay (SSP) per year — up from three days previously. 

Importantly, you can't claim Illness Benefit for days you receive SSP.

Here’s what this means for your entitlements:If you get sick for less than 5 days in 2024 and are eligible for Statutory Sick Pay, Illness Benefit is unnecessary. But if that illness persists over 5 days, you can get Illness Benefit starting on day 6.

Additionally, if you use up your 5 SSP days and fall ill again in the same year, Illness Benefit would kick in after the usual 3-day waiting period (there is no payment for the first 3 days of illness). 

2. What Is the Long-Term Illness Scheme in Ireland, and How Is it Different From Illness Benefit?

The Long-Term Illness Scheme in Ireland provides free medicines and medical appliances for specific 

Unlike Illness Benefit, which offers financial support for short-term inability to work due to illness, the Long-Term Illness Scheme focuses on covering the costs of specific medical needs. 

It's also not based on social insurance contributions.

3. How is Partial Capacity Benefit Different from Illness Benefit?

Partial Capacity Benefit is designed for individuals returning to work with reduced capacity after an illness.

It bridges the gap between illness recovery and resuming full employment. It allows you to earn an income while still receiving support, bridging the gap between Illness Benefit and full-time employment.

Unlock Robust Health Plans for Your Staff Through Kota

Got that Illness Benefit application under control?

But even with Ireland's Illness Benefit and other health-related programs, unexpected medical expenses can still leave a dent in your wallet.

Kota is a digital employee benefits management platform that enables business owners and contractors to provide top-notch and compliant 

 to their Irish teams.This way, employers can ensure comprehensive coverage for their staff beyond what social welfare provides.

How To Apply For Illness Benefit in Ireland: 2024 Guide

Wondering how Ireland’s Budget 2024 will impact you?

The Irish Minister for Finance, Michael McGrath, rolled the budget out on 10th October 2023, and it's packed with updates. 

Whether you're receiving a paycheck or managing a team, these changes are set to make a difference.

Our comprehensive guide distils the key takeaways from the complex policy and financial changes introduced. We’ll break down exactly how Budget 2024 may impact your job and personal finances.

Budget 2024 Ireland: The Numbers at a Glance

Before we delve into the specifics, let's take a peek at some key numbers that offer a big-picture overview:

As an Irish citizen, you contribute to social insurance through deductions made by your employer.

Let's explore changes related to social contributions in the Budget 2024.

PRSI is a contribution that both employees and employers make towards the cost of social insurance benefits and pensions. 

The PRSI contribution can vary based on factors such as employment status, employee’s income, and PRSI class. 

USC is a tax on gross income above certain thresholds, separate from income tax and PRSI.

2. Pensions and Retirement Benefit Changes

Starting 1st January 2024, eligible employees have the flexibility to 

 (Contributory) between ages 66 and 70, a shift from the previous fixed age of 66.

This allows you to work longer and potentially increase your pension through continued PRSI contributions.

Starting 1st January 2024, the following changes will apply to the Irish State Pension:

 A qualified adult dependent over 66 is not eligible for State Pension (Non-Contributory). When they turn 66, they can apply for State Pension (Non-Contributory) in their own right.

If you've been providing full-time care for over 20 years (1,040 weeks), you're now eligible for a special Long-Term Carers Contribution to your PRSI record. 

This addition could help you qualify for the State Pension (Contributory).

D. Transition to Total Contributions Approach (TCA)

Starting January 2025, the Irish government will begin a phased transition from the Yearly Average Method to the Total Contributions Approach (TCA) for pension calculations, focusing on total lifetime contributions.

 in Budget 2024. However, you could expect minor changes in the Finance Bill 2023, which may involve 

recommendations from the Inter-Departmental Pensions Reform & Taxation Group

While Budget 2024 doesn't directly introduce major changes to health insurance schemes for employers and employees, you should still be aware of some key impacts:

Adjustment in Tax Relief at Source for Health Insurance

A notable change, not stemming from Budget 2024 but impacting employers and employees, is the tax relief at source (TRS) rate adjustment by the Revenue Commissioners. 

Starting January 1st, 2024, the rate has decreased from 20% to 19% for some insurance providers like Irish Life Health (ILH) and Laya Healthcare. The Revenue Commissioners assess the rate on a company-by-company basis, so it might not be the same for all Irish health insurance providers.

What does this TRS rate reduction mean for you?

This reduced TRS rate could translate to slightly higher monthly premiums for employees and employers (if they pay premiums on their employees’ behalf, i.e., if they offer health insurance as a 

In the latter case, this would also mean employees will claim a slightly lower amount in tax credits, effectively increasing their net cost of health insurance.

The Budget 2024 also introduces changes to other social welfare schemes, such as:

The Budget 2024 brings some significant tax changes, impacting both employers and employees in Ireland. Let's unpack the essentials.

 These tax relief measures mean more take-home pay for employees, with increased thresholds reducing the tax burden.

 These business tax measures, particularly related to R&D, energy, and CGT relief, provide incentives for investment and innovation. The bank levy and corporate tax changes may impact financial planning for businesses.

The Irish government raised the National Minimum Wage from €11.30 to €12.70 per hour from 1st January 2024. 

The government sets the National Minimum Wage in Ireland as the legal minimum hourly rate employers must pay their employees, ensuring a basic standard of living for workers.

The Budget 2024 introduces several one-off cost of living supports, including boosts to existing welfare payments. These supports spread across late 2023 and early 2024, which means some are already reaching Irish citizens (as of January 2024).

Budget 2024 Ireland: Key Takeaways for Employers & Employees

If you’re self-employed, you cannot apply for Illness Benefit in Ireland because you don’t fulfil the PRSI requirements to qualify for it. 

Even though you don’t qualify for Illness Benefit, you could still apply for alternative benefits when you're sick long-term and need time off.

We’ll discuss why the Irish government doesn’t offer Illness Benefit for self-employed individuals and explore alternative benefits you can apply for.

Can Self-Employed Individuals Claim Illness Benefit in Ireland?

Self-employed people pay their PRSI (Pay Related Social Insurance ) contributions under class S, which automatically makes them ineligible to qualify for Illness Benefit. 

According to Irish law, only individuals who pay PRSI contributions under class A, E, H, or P can 

As of February 2024, the Irish government has no plans to make Illness Benefit accessible to self-employed people. 

Why are self-employed people ineligible for Illness Benefit in Ireland?

Illness Benefit in Ireland is funded by the Social Insurance Fund, which relies on Irish citizens' PRSI contributions. 

As a self-employed person, you contribute to this fund at a rate of 4%, which is 11.05% lower than the combined maximum 

This difference in contribution rates affects the benefits each group can access. 

Essentially, self-employed people don’t qualify for certain benefits due to their lower contribution.

However, depending on your situation, you can still access a significant portion of the fund's benefits by applying for alternatives.

5 Alternatives to Illness Benefit for Self-Employed People in Ireland

As a self-employed individual in Ireland, you can apply for the following social welfare payments (if you qualify for them):

Disability Allowance is a means-tested weekly payment for Irish citizens aged 16 to 66. They should have a disability that lasts at least one year and restricts them from working.

The Invalidity Pension is a weekly payment for people who are permanently incapable of working due to a severe illness or disability.

You must fulfil certain medical and social insurance contribution conditions to qualify for the Invalidity Pension. (Check out our 

Invalidity Pension payment rates from January 2024:

Partial Capacity Benefit is a scheme that allows people on Illness Benefit or Invalidity Pension payments to return to work (in a reduced capacity) while receiving a partial payment.

Invalidity Pension Vs Disability Allowance: What’s the Difference?

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