Skip to content
€ income.ie
Take-home calculatorSalary levelsPay scalesProfessionsIncome percentileMy Future FundIncome protectionTax bands Calculate take-home

Redundancy calculator · Ireland · 2026

What you're owed if your job is made redundant

Enter your weekly pay and years of service to see your statutory redundancy — the legal minimum, paid tax-free. If you're being offered a severance top-up, check what's taxable on it too. Nothing is stored.

€

Statutory pay is capped at €600/week, so anything above that doesn't raise the legal minimum.

8 yrs

Statutory redundancy (tax-free)

€10,200

17 weeks at €600/week

Weeks (2/yr + 1 bonus)17
Capped weekly pay€600
Tax-free lump sum€10,200

Estimate only. Reckonable service excludes some long absences; the SCSB and increased exemption have conditions. Check your figure with your employer or an adviser before relying on it.

How statutory redundancy is worked out

The legal minimum is simple once you know the rule: two weeks' gross pay for every year of service, plus one bonus week. Two things shape the result. Your gross weekly pay counts only up to €600 a week — earn more and the extra is ignored for the statutory sum. And you need two years' continuous service to qualify at all.

A worked example: 8 years of service, earning above the cap. That's (2 × 8) + 1 = 17 weeks, each worth €600 — a statutory lump sum of €10,200, paid entirely tax-free.

The tax: statutory is free, top-ups are not

Statutory redundancy carries no income tax, USC or PRSI. Where tax comes in is an ex-gratia payment — anything your employer adds above the statutory minimum. That extra is taxable, but you get a tax-free slice first: the higher of two figures.

  • Basic Exemption — €10,160 plus €765 for each full year of service. An Increased Exemption can add up to €10,000 more if you haven't taken a tax-free lump sum in the last 10 years and aren't drawing a tax-free pension lump sum now.
  • SCSB — your average annual pay over the last three years × full years of service ÷ 15, less any tax-free pension lump sum.

Whichever is bigger is your tax-free amount. Only the ex-gratia above it is taxed, at your marginal rate. There's a €200,000 lifetime cap on tax-free ex-gratia payments. To see how the taxable part lands on your overall pay, run it through the take-home calculator.

Who pays, and when

Your employer pays the statutory lump sum. If the business is insolvent and genuinely can't, the State's Social Insurance Fund steps in and recovers the cost from the employer. You should get a written calculation — check it against the figure above.

Redundancy in Ireland — common questions

How much redundancy pay am I entitled to in Ireland?
Statutory redundancy is two weeks’ gross pay for every year of service, plus one bonus week. Gross weekly pay is capped at €600. So someone with 8 years’ service earning over €600 a week gets 17 weeks × €600 = €10,200, tax-free. Use the calculator above for your own figure.
Who qualifies for statutory redundancy?
You need at least two years (104 weeks) of continuous service with the employer and to be genuinely made redundant — your role, not you, is no longer needed. Below two years there is no statutory entitlement, though an employer may still offer an ex-gratia payment.
Is redundancy pay taxable in Ireland?
Statutory redundancy is completely tax-free — no income tax, USC or PRSI. Any ex-gratia (extra) payment above the statutory amount is taxable, but a tax-free slice applies: the higher of the Basic Exemption or the SCSB. Only the part above that is taxed.
Who pays statutory redundancy?
Your employer pays the statutory redundancy lump sum. If the employer genuinely cannot pay — for example, the business is insolvent — the State Social Insurance Fund pays it, and the debt is pursued from the employer.
How is the €600 weekly cap applied?
Statutory redundancy only counts gross weekly pay up to €600, even if you earn more. Earnings above €600 a week don’t increase the legal minimum — but they may push your employer to offer an ex-gratia top-up on top.
What is the SCSB?
The Standard Capital Superannuation Benefit is an alternative tax-free exemption for ex-gratia payments: average annual pay over the last three years × full years of service ÷ 15, less any tax-free pension lump sum. You get whichever is higher — SCSB or the Basic Exemption.