Statutory redundancy calculator Ireland

How statutory redundancy is calculated

1. Count your reckonable service in years and days, from age 16 onwards. Days are turned into a fraction of a year (days ÷ 365), rounded to two decimals.
2. Multiply by 2 weeks and add 1 bonus week.
3. Multiply by your gross weekly pay, capped at €600.

You need at least 104 weeks of continuous service with the same employer to qualify. There is no cap on the number of years that count.

Examples from the Department of Social Protection

In the last example the actual wage is above the ceiling, so €600 is used.

Tax on redundancy

The statutory lump sum is exempt from income tax and USC. An extra (ex gratia) payment from your employer is tax-free up to the basic exemption of €10,160 plus €765 for each complete year of service. If you have no pension lump sum, you may add the increased exemption of €10,000. Tax-free termination payments are capped at €200,000 over your lifetime.

For 20 years of service the basic exemption is €25,460. There is also a third option, the Standard Capital Superannuation Benefit, which can be higher for long-serving, well-paid staff.

What counts as weekly pay

Use normal gross weekly pay, including regular overtime and allowances. Your contract may promise more than the statutory amount, often a number of weeks per year; the statutory figure is only the floor.