Terrace city council voted last week to increase the budget for civil servants sick pay by allocating provincial funding originally meant for COVID recovery.
Council recommended allocating $220,000 to offset the costs for both 2022 and 2023.
The city’s sick pay costs have increased dramatically in the last few years, jumping from $239,000 in 2018 to $572,000 in 2022.
“With sick benefits payable at 100 per cent and with employees being encouraged to stay home when sick, we are seeing increased usage and costs of sick time benefits,” reads a council memo.
According to Council, the jump can be attributed to the changing culture around sick days.
Prior to the pandemic, city employees were provided with a portion of sick benefits at 75 per cent pay. If employees were off due to illness, the first two days were paid at 75 per cent, the third day of illness up to 13 weeks is payable at 100 per cent, with an additional 13 weeks available at 75 per cent.
In response to the pandemic, the provincial government introduced amendments to B.C.’s Employment Standards Act, making all employees covered under the Act eligible for five paid sick days per year at 100 per cent pay.
With full pay, employees are now encouraged to stay home when sick, which has resulted in increased usage and costs associated with sick time benefits.
Costs are being covered by a portion of the “COVID-19 Safe Restart” grant, money the B.C. government sent to every local government to aid in pandemic recovery, so there is no direct cost to city taxpayers.
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