Ireland Statutory Redundancy Calculator
Calculate your Irish statutory redundancy lump sum under the Redundancy Payments Acts. Enter your weekly gross pay and length of continuous service to see your tax-free entitlement based on the "2 weeks per year of service plus 1 bonus week" formula, with the statutory €600 weekly pay cap applied automatically.
How Irish Statutory Redundancy Works
Statutory redundancy in Ireland is a lump sum paid to eligible employees whose jobs cease to exist, governed by the Redundancy Payments Acts 1967-2014. The formula is simple: two weeks of gross pay for each full year of continuous service, plus one additional bonus week regardless of tenure. Part-years count proportionally — six months counts as half a year for the calculation. Weekly pay used in the formula is capped at €600 per week gross, so employees earning more than that still calculate their entitlement as if they earned €600 per week. The resulting lump sum is paid by the employer directly and must be issued on the date employment ends along with a Redundancy Payment Certificate (RP50).
Who Qualifies for Statutory Redundancy
To qualify for a statutory redundancy payment in Ireland you must be aged 16 or over, be in employment insurable under the Social Welfare Acts, and have at least 104 weeks (2 years) of continuous service with the same employer. The role itself must be genuinely redundant — for example the employer is ceasing the business, the workplace is closing, the role is no longer required, or the work is being done by fewer employees. Employees on fixed-term and part-time contracts are covered on the same basis once the service threshold is met. Periods of protected leave such as maternity, paternity, parental and adoptive leave count as continuous service.
The €600 Weekly Pay Cap
Irish redundancy law caps the gross weekly pay figure used in the calculation at €600 per week, equivalent to €31,200 per year. If your actual gross weekly pay is €600 or less, your full weekly pay is used. If you earn more than €600 a week, the excess is ignored for statutory purposes. For example, an employee earning €900 per week with 10 years of service receives (2 × 10 + 1) × €600 = €12,600 rather than €18,900. Regular overtime, shift premiums and bonuses may be included in weekly pay, but irregular or discretionary bonuses are usually excluded. The cap is reviewed periodically by the Minister for Enterprise, Trade and Employment.
Tax Treatment of Redundancy Payments
Statutory redundancy is completely exempt from Income Tax, USC and PRSI in Ireland — you receive the full lump sum with no deductions. Any ex-gratia or enhanced redundancy your employer pays on top of the statutory amount is potentially taxable, but several reliefs are available including the Basic Exemption (€10,160 plus €765 per year of service), the Increased Exemption, and the Standard Capital Superannuation Benefit (SCSB). These reliefs can significantly reduce or eliminate tax on an enhanced package. Always request a written breakdown from your employer separating the statutory amount from any ex-gratia payment. For disputes or unpaid statutory redundancy, complaints can be lodged with the Workplace Relations Commission within 12 months.
Disclaimer: This calculator provides an estimate of statutory redundancy only. Ex-gratia or enhanced redundancy from your employer may be higher. Consult the Workplace Relations Commission (WRC) or a qualified employment solicitor for case-specific advice.
Frequently Asked Questions
How is statutory redundancy calculated in Ireland?
The Irish statutory redundancy formula is two weeks of gross pay for each full year of continuous service, plus one additional bonus week regardless of length of service. Part-years count on a pro-rata basis. Weekly pay used in the calculation is capped at 600 euro per week gross. For example, an employee with 10 full years of service earning 500 euro per week receives (2 × 10 + 1) × 500 = 10,500 euro tax-free.
What is the minimum service for redundancy pay in Ireland?
You need at least 104 weeks (2 years) of continuous service with the same employer to qualify for statutory redundancy. You must also be aged 16 or over and be in insurable employment under the Social Welfare Acts. Protected leave such as maternity, paternity, parental and adoptive leave counts toward continuous service. Short breaks between fixed-term contracts may also count if service is deemed continuous.
Is redundancy pay taxed in Ireland?
No, statutory redundancy is completely exempt from Income Tax, USC and PRSI — you receive the full lump sum tax-free. However, any ex-gratia or enhanced redundancy payment your employer offers on top of the statutory amount is potentially taxable. Reliefs such as the Basic Exemption (10,160 euro plus 765 euro per year of service), the Increased Exemption, and the Standard Capital Superannuation Benefit (SCSB) can reduce or eliminate tax on enhanced packages.
What is the 600 euro weekly cap?
Irish redundancy law caps the weekly gross pay figure used in the statutory calculation at 600 euro per week (equivalent to 31,200 euro per year). If you earn more than 600 euro a week, the excess is ignored for statutory purposes. If you earn 600 euro or less, your actual weekly pay is used. The cap applies only to the statutory formula — your employer may choose to pay ex-gratia amounts based on your full weekly salary.
What if my employer refuses to pay statutory redundancy?
If your employer refuses to pay statutory redundancy you are entitled to, or claims inability to pay, you can lodge a complaint with the Workplace Relations Commission (WRC) within 12 months of dismissal. If the employer is genuinely insolvent, the Social Insurance Fund (operated by the Department of Social Protection) can pay the statutory amount directly. Always keep written records of your notice, RP50 redundancy certificate, and final payslips.