Redundancy Payments Acts 1967 to 2014

Statutory redundancy calculator Ireland: your lump sum

Irish statutory redundancy is two weeks' gross pay per year of service plus one bonus week, with weekly pay capped at €600. Ten years on €800 a week comes to €12,600, tax free.

€

Gross pay before deductions, including regular overtime and benefits. The calculation caps it at €600.

years

Include part years as a fraction. You need at least 104 weeks (2 years) of service to qualify.

Statutory redundancy lump sum

€12,600

Paid tax free. Requires at least 104 weeks' continuous service; anything your employer adds on top is a separate, potentially taxable, ex gratia payment.

Weekly pay used (capped at €600)€600
Weeks of pay due (2 per year + 1)21

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How this is worked out

  • Statutory formula under the Redundancy Payments Acts 1967 to 2014: two weeks' gross pay per year of service plus one further week. Weekly pay is capped at €600 (Citizens Information; Redundancy Payments Act 1967).
  • The €600 weekly ceiling (€31,200 a year) is the maximum weekly amount used in the statutory calculation, whatever you actually earn (Citizens Information). It is set by ministerial order under the Redundancy Payments Acts and can be changed; check before finalising any settlement.
  • Eligibility requires at least 104 weeks (2 years) of continuous employment that is fully insurable under the Social Welfare Acts; the calculator does not check this for you.
  • Part years of service count proportionately (excess days over a full year are converted to a fraction), which is why the years input accepts halves.
  • The statutory lump sum is tax free. Employer top-ups (ex gratia payments) are taxable, subject to the exemptions covered in our redundancy tax calculator.
  • Gross weekly pay means normal weekly earnings including regular overtime and benefits in kind; irregular earnings are averaged. Take advice on the exact figure if your pay varies.

Redundancy Calculator Ireland is an information site. It is not affiliated with the Department of Social Protection, Revenue or any other body, and nothing here is legal or tax advice; confirm your entitlement with an employment solicitor or accountant before agreeing any package.

Irish statutory redundancy lump sums by service

Last updated

Two weeks per year of service plus the bonus week, at a €500 weekly wage and at the €600 cap (any wage of €600 or more produces the capped column). Statutory redundancy is tax free.

Computed from the statutory formula in the Redundancy Payments Acts 1967 to 2014: lump sum = min(weekly pay, €600) x (2 x years of service + 1). The €600 weekly ceiling (€31,200 a year) is confirmed on Citizens Information as at this page's updated date.

Irish statutory redundancy lump sums by service
Years of serviceWeeks of pay dueLump sum at €500/weekLump sum at €600 cap
2 years5€2,500€3,000
5 years11€5,500€6,600
10 years21€10,500€12,600
15 years31€15,500€18,600
20 years41€20,500€24,600
  • Irish statutory redundancy is two weeks' pay per year of service plus one bonus week, with weekly pay capped at €600, so ten years' service pays a maximum of €12,600.
  • The statutory redundancy lump sum in Ireland is entirely tax free; only employer top-ups above it can be taxed.
  • You need 104 weeks (2 years) of continuous insurable employment to qualify for statutory redundancy in Ireland.

Cite this page

“Irish statutory redundancy lump sums by service”, Redundancy Calculator Ireland, https://redundancycalculatorireland.com/ (updated 2026-10-21). Computed from the statutory formula in the Redundancy Payments Acts 1967 to 2014: lump sum = min(weekly pay, €600) x (2 x years of service + 1). The €600 weekly ceiling (€31,200 a year) is confirmed on Citizens Information as at this page's updated date.

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Related guides

Each one cites where its numbers come from.

Straight answers

How is statutory redundancy calculated in Ireland?

Two weeks' gross pay per year of service plus one bonus week, with weekly pay capped at €600. Ten years' service on €800 a week: 21 weeks at the €600 cap, a lump sum of €12,600, paid tax free.

Is statutory redundancy tax free in Ireland?

Yes, in full: no income tax, USC or PRSI, so a lump sum tax calculator has nothing to take off the statutory figure. Only ex gratia amounts an employer adds above the statutory entitlement can be taxed, and those attract their own exemptions.

Who qualifies for statutory redundancy in Ireland?

Employees aged 16 or over with at least 104 weeks (2 years) of continuous service, in employment fully insurable under the Social Welfare Acts. The job itself must genuinely cease to exist.

What if my wage is more than €600 a week?

The statutory calculation ignores the excess: €600 is the ceiling per week of entitlement, so anyone earning at or above it receives the same statutory sum for the same service. Employer top-ups are the only way past the cap.

Is voluntary redundancy calculated the same way?

The statutory element is: same formula, same €600 cap, same tax-free status. Voluntary packages usually add an ex gratia sum on top, which is taxable above the basic exemption or SCSB relief, so compare offers on the after-tax figure.

How much redundancy am I entitled to in Ireland?

Two weeks' gross pay for every year of service plus one bonus week, with weekly pay counted up to €600. Two years on €500 a week is 5 weeks, €2,500; ten years at or above the cap is 21 weeks, €12,600. Anything above that is an ex gratia payment agreed with your employer, not an entitlement.

How are redundancy payments made in Ireland?

The employer pays the statutory lump sum directly when the job ends. If the employer is insolvent or genuinely unable to pay, you claim it from the Social Insurance Fund through the Department of Social Protection. If the employer refuses or disputes it, the claim goes to the Workplace Relations Commission within one year of the dismissal.

Does this redundancy calculator work in Dublin?

Yes. Statutory redundancy is one national scheme under the Redundancy Payments Acts. The formula, the €600 weekly cap and the tax-free status are the same in Dublin as anywhere else in the State.

Can I use it as a redundancy package calculator?

For the statutory part, yes: that figure is fixed by law and tax free. A package usually adds an ex gratia sum on top, negotiated with your employer, which can be taxed. Our redundancy tax calculator works out the tax-free amount and the income tax and USC on that part.

What is the average redundancy package in Ireland?

No Irish public body or survey we read publishes an average redundancy package: ex gratia terms are private to each employer. The statutory part is fixed by formula. CSO puts average weekly earnings at €1,046.88 in Q2 2026 (preliminary), above the €600 cap. So on average pay the statutory sum is capped: €12,600 after ten years, €24,600 after twenty.

Sources

This site's own datasets, every figure quoted from its source and dated:

  • The IE Redundancy Volume and State Payouts carries 3 published figures read from 2 sources' own pages, under different breakdowns, so no one range is stated, read 12 October 2026.
  • The IE Statutory Redundancy Entitlement carries 6 published figures read from 6 sources' own pages; the 4 published figures given without a breakdown run from 600 to 600 EUR, read 7 November 2026.
  • The Notice and Collective Redundancy Rules carries 11 published figures read from 4 sources' own pages; the 6 published figures given by rule run from 2 to 104 week, read 7 November 2026.
  • The Redundancy Payment Tax Treatment carries 13 published figures read from 8 sources' own pages; the 11 published figures given by relief run from 765 to 500,000 EUR, read 7 November 2026.
  1. Citizens Information, how much redundancy pay will I get?
  2. Citizens Information, lay-off, short-time working and redundancy
  3. Revenue, lump sum payments (termination payments)
  4. Redundancy Payments Act 1967 (Irish Statute Book)
  5. gov.uk, redundancy pay (GB comparison)

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