The Victorian government has announced a $245.6 million casual worker sick leave pilot scheme.

The ‘Victorian Sick Pay Guarantee’ will provide five days, or 38 hours, of paid sick or carers leave for workers at the national minimum wage (currently $20.33 per hour), allowing eligible workers to claim up to $772.54 a year.

The scheme will be funded by taxpayers for now, but the government says a levy applied to business could soon be used. 

The state has launched a two-year trial, offering cover to industries that have large cohorts of casual workers, including hospitality, food trades and food preparation, supermarkets, retail and sales, aged and disability care, cleaning/laundry and security services. 

An estimated 150,000 workers across the selected industries will be eligible.

Workers under the age of 18 must have the permission of a parent or guardian to apply for the scheme. 

The money will come on top of the 25 per cent casual loading most of these workers would currently receive. 

Self-employed sole traders and freelancers should be eligible to apply too. 

Workers will need to provide a medical certificate if the leave is for more than 15 hours in a row. 

“The absolute common sense of this, and frankly, the equity and justice of this will be absolutely obvious to everybody,” Premier Daniel Andrews said.

About 23 per cent of employees across Australia are on casual contracts. The United Workers Union has welcomed the new scheme. 

The first phase of the scheme is expected to cost up to $245.6 million, which will be paid by the state as part of the 2020-21 State Budget.

If the scheme is to be extended, the government says an industry levy will be used to fund it. 

The Premier said the pilot project may catch the federal government’s interest. 

“At the end of two years, wouldn't it be great if we had a national government that said; ‘Yes, this is actually a national issue’,” Mr Andrews said.

“A proper national government who is interested in reform would perhaps be part of this.”

But Federal Industrial Relations Minister Michaelia Cash does not appear too excited, saying Mr Andrews needs to “explain to Victorian small and medium businesses what will happen after the initial two-year period expires and how much he will tax them to cover his scheme”.

“Victorian employers should not have to pay a casual worker tax, which is nothing but a tax on jobs and a handbrake on our economy,” she said.

“Employers already pay a 25 per cent loading to casual workers, in lieu of entitlements.”

Victoria’s Liberal opposition has described the scheme as “politically motivated”.