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.