Ireland Redundancy Pay Calculator

The formula is 2 weeks' pay for every year of continuous service, plus one additional bonus week, with weekly pay capped at €600 regardless of what you actually earn. For example, 10 years of service works out to 10 x 2 + 1 = 21 weeks, and at the €600 cap that comes to €12,600. Fractional years of service are counted proportionately toward the total.

It is your normal gross weekly pay before tax, based on your basic contracted pay, up to the €600 cap. If you are paid monthly, your employer converts your monthly salary to a weekly equivalent. Regular, guaranteed allowances that form part of your normal pay are usually included, but discretionary bonuses and irregular overtime typically are not.

€600 per week. This is the maximum weekly figure used in the statutory formula, even if your actual gross weekly pay is higher. The cap has remained unchanged for several years, meaning the maximum possible statutory redundancy payment (with no upper limit on years of service) grows in proportion to your length of service rather than your salary once you earn above roughly €31,200 a year.

No. Statutory redundancy pay is entirely exempt from Income Tax, USC, and employee PRSI, with no cap on the tax-free amount and no need to claim any exemption. This is different from an additional ex-gratia or enhanced payment your employer might choose to make on top, which is taxed under separate rules (the Basic Exemption or the Increased Exemption), up to a lifetime cap of €200,000 across all your redundancy payments.

Nothing on the statutory part. The ex-gratia part is tax-free up to the highest of three amounts: the basic exemption (€10,160 plus €765 per full year), the increased exemption (a further €10,000 if you haven't had a tax-free termination lump sum in the past 10 years, less any tax-free pension lump sum), or SCSB (your average pay over the last three years, times your years of service, divided by 15). Anything above that is taxed as income with USC, but not PRSI. For example, a 10-year employee on €60,000 can receive up to €40,000 of ex-gratia tax-free, because SCSB gives the most.

Almost always because of the €600 weekly cap. Statutory redundancy uses at most €600 a week, about €31,200 a year, however much you earn, so on a €90,000 salary the statutory amount covers only a third of your real weekly pay. That's why most employers with a redundancy policy pay an ex-gratia amount on top, often expressed as extra weeks of uncapped pay per year of service. Check your contract, company policy or collective agreement for what your employer offers.

At least 104 weeks (2 years) of continuous service with the same employer. If you have less than 2 years of service, you are not entitled to the statutory minimum, though your employer may still choose to make an ex-gratia payment, and you remain entitled to your notice period and any accrued but unused annual leave.

Part-time work still counts toward your years of continuous service in the same way as full-time work; your entitlement is simply based on your actual weekly pay (up to the €600 cap) at the time of redundancy. Certain approved leave, such as maternity leave, adoptive leave, parental leave, and periods of illness covered by a doctor's certificate, does not break continuity of service. An unpaid career break agreed with your employer generally also preserves continuity, though the specific terms of your career break agreement matter.

Statutory redundancy is the legal minimum set by the formula above and applies to every eligible employee. An enhanced or ex-gratia payment is anything extra an employer chooses to offer, whether through a collective agreement, company policy, or individual negotiation, often expressed as a number of weeks per year of service with no cap on weekly pay. Enhanced payments are taxed differently from the statutory amount, typically under the Basic Exemption (€10,160 plus €765 per year of service) or the more generous Increased Exemption if you don't have an occupational pension lump sum.

No. Notice pay, known as minimum notice under the Minimum Notice and Terms of Employment Act, is a separate entitlement based on your length of service and is taxed as ordinary income through PAYE, USC, and PRSI in the normal way. It is calculated and paid independently of your statutory redundancy lump sum.

No, if you meet the eligibility criteria (genuine redundancy situation, at least 104 weeks' continuous service), your employer is legally required to pay the statutory amount. If they refuse or dispute your entitlement, you can refer a claim to the Workplace Relations Commission (WRC), normally within 52 weeks of your job ending. If your employer is insolvent, the statutory amount can be paid from the Social Insurance Fund instead.

A statutory redundancy lump sum does not affect your entitlement to Jobseeker's Benefit, since Jobseeker's Benefit is based on your PRSI contribution record rather than your savings or capital. However, if you later apply for the means-tested Jobseeker's Allowance, your redundancy payment may be assessed as capital and could reduce or delay your entitlement, depending on the amount and your other means.