Income Protection for HSE and Public-Sector Workers in Ireland (2026)
By the Job Vacancies Ireland editorial team · How we verify our guides
Primary source: Revenue — Jobs and Pensions
Quick answer: Income protection pays you a replacement income – usually up to 75% of your salary (less any State illness benefit) – if illness or injury stops you working long-term. Premiums qualify for tax relief at your marginal rate (20% or 40%). It matters for public servants because the Public Service Sick Leave Scheme only covers a limited period before pay drops sharply.
Public-sector sick pay is better than most, but it is not unlimited. If a serious illness or injury kept you out of work for a year or more, income protection is what bridges the gap. Here is how it works and why it is worth understanding.
Why public servants have a gap to cover
Under the Public Service Sick Leave Scheme you typically get a period on full pay, then a period on half pay, and after that a much lower Temporary Rehabilitation Remuneration – all within capped limits over a rolling period. For a short illness that is fine. For a long-term one, your income can fall steeply while your mortgage and bills do not. See our HSE sick leave policy guide for the detail.
How income protection works
- You insure a percentage of your income – typically up to 75% of gross earnings, minus the State illness benefit.
- There is a deferred period you choose (for example 13, 26 or 52 weeks) before the benefit starts – public servants often set this to line up with when their sick pay reduces.
- The benefit is paid until you can return to work, or to retirement age, whichever comes first.
- The monthly benefit you receive is taxable as income.
The tax relief
Income protection (a Revenue-approved Permanent Health Insurance policy) is the one type of personal insurance that gets income tax relief: premiums qualify for relief at your marginal rate (20% or 40%), on premiums up to 10% of your income. A €100 monthly premium effectively costs a higher-rate taxpayer about €60. PAYE staff claim it in Revenue myAccount under Permanent Health Insurance – see Revenue.
What it is not
Income protection is not the same as mortgage protection (which clears your mortgage on death), life cover, or a one-off specified-illness payout. It replaces ongoing income – the thing your salary actually does.
Before you decide
Check what income protection you may already have through a union, scheme or employer before buying your own, and compare cover through a regulated broker. Work out what you would actually need with our take-home pay calculator, and read what is a salary protection scheme.
This is general information, not financial advice. Talk to a regulated financial advisor or broker about your own circumstances, and confirm current tax rules with Revenue.
Frequently asked questions
- Do public servants need income protection?
- The Public Service Sick Leave Scheme pays full then half pay for a limited period, then a lower Temporary Rehabilitation Remuneration. For a long-term illness that is a real income gap, which is what income protection is designed to bridge. Check any cover you already have through a union or scheme first.
- Is income protection tax-deductible in Ireland?
- Yes. Premiums on a Revenue-approved Permanent Health Insurance (income protection) policy qualify for income tax relief at your marginal rate, 20% or 40%, on premiums up to 10% of your income. PAYE employees claim it in Revenue myAccount.
- How much of my salary can I cover?
- Typically up to 75% of your gross income, minus any State illness benefit you would receive. The monthly benefit you are paid is taxable as income.
- Is income protection the same as mortgage protection?
- No. Mortgage protection clears your mortgage if you die; life cover pays a lump sum on death; income protection replaces your ongoing income if illness or injury stops you working. They cover different risks.
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