Irish Redundancy Calculator
Work out your statutory redundancy payment in Ireland, and the tax on any extra payment your employer offers.
Your statutory redundancy payment
Extra payment from your employer
Estimate only, based on 2026 figures. Your real tax depends on your other income that year. Notice pay, holiday pay and pension entitlements are separate and not included.
Statutory Redundancy Payment Chart
Statutory redundancy is (2 × years of service + 1) weeks' pay, with weekly pay capped at €600.
| Years of service | Weeks of pay | €400 / week | €500 / week | €600+ / week |
|---|---|---|---|---|
| 2 | 5 | €2,000 | €2,500 | €3,000 |
| 3 | 7 | €2,800 | €3,500 | €4,200 |
| 5 | 11 | €4,400 | €5,500 | €6,600 |
| 8 | 17 | €6,800 | €8,500 | €10,200 |
| 10 | 21 | €8,400 | €10,500 | €12,600 |
| 15 | 31 | €12,400 | €15,500 | €18,600 |
| 20 | 41 | €16,400 | €20,500 | €24,600 |
| 25 | 51 | €20,400 | €25,500 | €30,600 |
| 30 | 61 | €24,400 | €30,500 | €36,600 |
How redundancy pay is calculated in Ireland
To qualify for statutory redundancy you generally need at least 2 years (104 weeks) of continuous service with your employer. The payment is two weeks' gross pay for every year of service, plus one bonus week, and your weekly pay is capped at €600. For example, 8 years' service gives 17 weeks, so 17 × €600 = €10,200 for anyone earning €600 a week or more. The statutory payment is tax-free and free of USC and PRSI.
Many employers offer an enhanced package above the statutory amount. This extra, or "ex-gratia", payment is taxable only above a tax-free exemption, which is the higher of: the Basic Exemption (€10,160 plus €765 for each full year of service), the Increased Exemption (the basic exemption plus €10,000, if you qualify), and the Standard Capital Superannuation Benefit (your average pay over the last 3 years × full years of service ÷ 15). Only the amount above the exemption is taxed, at your marginal rate plus USC, and there is a lifetime limit of €200,000 on the tax-free amount. Statutory redundancy does not use up the exemption.
FAQ
How is statutory redundancy calculated in Ireland?
Statutory redundancy is two weeks' gross pay for every year of service, plus one bonus week, with weekly pay capped at €600. For example, 10 years' service is 21 weeks, so up to 21 × €600 = €12,600.
How long do I need to work to qualify for redundancy in Ireland?
You generally need at least 2 years (104 weeks) of continuous service with your employer. Some groups, such as certain temporary or part-time workers, have special rules, so check your own situation.
Is statutory redundancy pay taxable in Ireland?
No. A statutory redundancy lump sum is tax-free, with no income tax, USC or PRSI. Only an extra ex-gratia payment above the tax-free exemptions can be taxable.
What is the weekly pay cap for redundancy in Ireland?
Weekly pay counts only up to €600 for statutory redundancy purposes. If you earn more, your statutory payment is calculated as if you earned €600 a week, although your employer may agree a larger package.
What is an ex-gratia redundancy payment?
It is any payment from your employer above your statutory entitlement, such as an enhanced severance package. It can be partly or fully tax-free depending on the Basic Exemption, Increased Exemption and Standard Capital Superannuation Benefit.
What is the basic exemption for redundancy and termination payments?
The Basic Exemption is €10,160 plus €765 for each full year of service. Revenue applies whichever of the available exemptions gives you the largest tax-free amount.
How does the SCSB (Standard Capital Superannuation Benefit) work?
It equals your average annual pay over the last 3 years multiplied by your complete years of service, divided by 15, less any tax-free pension lump sum you will receive. If it exceeds the basic exemption, it gives a bigger tax-free amount.
Is there a limit on tax-free termination payments?
Yes. There is a lifetime limit of €200,000 on the tax-free amount from termination payments. Statutory redundancy does not count towards it.
Do part years of service count?
Statutory redundancy is calculated on reckonable service, and this calculator counts part years proportionally. The tax exemptions use complete years of service only. Check with your employer or the Department if you are close to a threshold.
Does redundancy pay include notice pay and holiday pay?
No. Statutory notice pay, accrued holiday pay and any pay in lieu of notice are separate from the redundancy lump sum and are usually taxable as normal pay.
About this tool
This calculator estimates statutory redundancy and the tax on an enhanced redundancy package in Ireland. It is a guide only and not tax or legal advice. Rules and limits change, so confirm your entitlement and tax position with your employer, Revenue, Citizens Information or a qualified adviser. Your redundancy entitlement can be checked with the Department of Enterprise, Tourism and Employment.