calculators.ieAll calculators

Redundancy calculator

Statutory redundancy is 2 weeks' pay for each year of service plus 1 bonus week, with pay capped at €600 a week. It is tax free. Add an ex gratia payment to see how much of it is tax free too.

Gross pay
Tax-free lump sum options
Statutory redundancy 
Service
 
Weekly pay used
 
Weeks' pay
 
Tax-free limit on ex gratia
 
Lump sum after tax
Tax-free limit on ex gratia: the highest of

This is an estimate for general information, based on the rates and rules described on this page. It is not financial, tax or legal advice and does not take account of your full circumstances. Check your own position with Revenue or a qualified tax adviser before making a decision. Terms of use.

Illustration for the redundancy pay calculator

How redundancy pay is worked out

Statutory redundancy

Weeks' pay = 2 x years of service + 1. Weekly pay is your normal gross weekly pay, capped at €600. Part years count by days: 4 years and 190 days is 4.52 years. You need at least 104 weeks of continuous service.

Tax on an ex gratia payment

The tax-free amount is the highest of:

  • Basic exemption: €10,160 + €765 x complete years of service.
  • Increased exemption: basic exemption + €10,000, less any tax-free pension lump sum. Not available if you received more than the basic exemption tax free in the last 10 years, or if the pension lump sum is €10,000 or more.
  • SCSB: average yearly pay over the last 36 months x complete years / 15, less any tax-free pension lump sum.

Tax-free termination payments over your lifetime are capped at €200,000. The rest is taxed as pay in the year you receive it: income tax and USC, but no PRSI. Our estimate adds it to your other income for the year as a single person. Your employer deducts tax through payroll; any overpayment comes back when you file a return.

Example. You worked from 10 October 2016 to 9 October 2026 (10 years) on €800 a week. Statutory redundancy is (2 x 10 + 1) x €600 = €12,600, tax free.

Your employer adds €40,000 ex gratia. The basic exemption is €17,810. With no pension lump sum and no earlier claim, the increased exemption is €27,810. SCSB on average pay of €41,600 is €27,733. The highest is €27,810, so €12,190 is taxable. With €31,000 of other income in 2026, the tax on it is about €2,804.

Not included: top slicing relief, and paying part of the lump sum into a pension. Pay in lieu of notice, holiday pay and pay arrears are not part of the ex gratia sum: they are taxed in full as pay, with PRSI.

Sources

Rates last checked 10 October 2026. Every figure is listed on rates and sources.

Figures marked as announced come from Budget 2027 and are not law until the Finance Act 2026 is signed.

Questions

How is statutory redundancy calculated?
2 weeks' pay for every year of service, plus 1 bonus week. Weekly pay is capped at €600, so the most a year of service is worth is €1,200. Part years count in proportion to the days worked.
Who qualifies for statutory redundancy?
Employees aged 16 or over with at least 104 weeks of continuous service with the employer, in insurable employment (usually Class A PRSI), whose job is gone through genuine redundancy.
Is redundancy pay taxed?
Statutory redundancy is tax free. An ex gratia payment on top is tax free up to the highest of the basic exemption, the increased exemption and SCSB. Anything above that is taxed as pay: income tax and USC, but not PRSI.
What is the basic exemption?
€10,160 plus €765 for each complete year of service. You can use it more than once, for payments from different employers, within a lifetime limit of €200,000.
What is the increased exemption?
An extra €10,000 on the basic exemption if you have not received a payment above the basic exemption in the previous 10 years and you are not in a workplace pension, or you give up your right to a tax-free pension lump sum. Any tax-free pension lump sum you are entitled to is taken off the extra €10,000.
What is SCSB?
The Standard Capital Superannuation Benefit is your average yearly pay over the last 36 months, times complete years of service, divided by 15, less any tax-free pension lump sum. It helps people with longer service and higher pay.
Do I pay tax on a pension lump sum and redundancy?
A tax-free pension lump sum entitlement reduces the increased exemption and SCSB. If it is worth more to you, you can give up the pension lump sum to get the full increased exemption. Revenue or a tax adviser can confirm the choice for your case.

Related calculators