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Taxation of social welfare payments - Illness Benefit

  1. Overview
  2. Taxing IB, Occupational Injury Benefit and Partial Capacity Benefit
  3. Illness Benefit included in employee's Revenue Payroll Notification (RPN)
  4. How to pay an employee who is receiving Illness Benefit?

Overview

The three main types of social welfare payment made by the Department of Social Protection (DSP) are:

  • Contributory payments, for example, Illness Benefit (IB). This is based on your Pay Related Social Insurance (PRSI) contributions.
  • Non-contributory payments, for example, Jobseeker's Allowance. This is based on a means test.
  • Universal payments, for example, Child Benefit. This is not based on PRSI contributions or means tested.

This section will explain how IB, Occupational Injury Benefit and Partial Capacity Benefit (all contributory payments) are taxed. For ease of reference, the term IB is used to cover all three payments.

Next: Taxing IB, Occupational Injury Benefit and Partial Capacity Benefit

Published: 12 February 2024 Print this page

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