Redundancy Payments Acts 1967 to 2014
What is your statutory redundancy worth?
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, paid tax free. Enter your pay and service to see your own figure.
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, with weekly pay capped at €600 (Citizens Information; Redundancy Payments Act 1967).
- The €600 weekly ceiling has applied since 2005 and is set by ministerial order; verify the current figure on gov.ie 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 tax guide.
- 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 independent information site operated by Ellul Solutions Ltd. 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 cap has applied since 2005.
| Years of service | Weeks of pay due | Lump sum at €500/week | Lump sum at €600 cap |
|---|---|---|---|
| 2 years | 5 | €2,500 | €3,000 |
| 5 years | 11 | €5,500 | €6,600 |
| 10 years | 21 | €10,500 | €12,600 |
| 15 years | 31 | €15,500 | €18,600 |
| 20 years | 41 | €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 2026-08-14). 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 cap has applied since 2005.
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Related guides
Each one cites where its numbers come from.
- Redundancy eligibility in Ireland: the 104-week rule and who qualifies
Who qualifies for statutory redundancy in Ireland: 104 weeks' continuous insurable service, a genuine redundancy, and the lay-off and short-time routes to claiming.
- Is redundancy taxable in Ireland? Statutory, ex gratia and SCSB
Statutory redundancy is tax free in Ireland. Ex gratia top-ups are taxable above the basic exemption (€10,160 plus €765 a year) unless SCSB gives a higher relief.
- Redundancy pay: Ireland vs the UK and Northern Ireland compared
Ireland pays 2 weeks per year plus 1 at a €600 cap, tax free with no service limit. The UK uses age-banded multipliers, a 20-year cap and a £719 weekly cap (2025/26).
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. 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, where the job itself genuinely ceases 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.
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