Guide
Redundancy pay: Ireland vs the UK and Northern Ireland compared
Updated
The two systems share a name and little else. If you have worked both sides of the border, here is how the entitlements differ.
The two formulas side by side
| Feature | Ireland | Great Britain |
|---|---|---|
| Formula | 2 weeks per year + 1 bonus week | 0.5, 1 or 1.5 weeks per year by age band |
| Weekly pay cap | €600 | £751 (from 6 April 2026) |
| Service counted | All years, no cap | Capped at 20 years |
| Qualifying service | 104 weeks | 2 years |
| Tax treatment | Statutory sum fully tax free | Statutory sum tax free within the £30,000 termination exemption |
The GB weekly cap is uprated every April; £751 is the figure for dismissals on or after 6 April 2026, giving a maximum statutory award of £22,530, and Northern Ireland sets its own cap under separate legislation. Verify the current caps on gov.uk and nidirect before relying on them.
What this means in money
Ireland's flat two-weeks-per-year formula with no service cap is usually the more generous for long service at modest pay: 20 years at the Irish cap pays €24,600, while the same service in GB pays at most 30 weeks (age-dependent) at £751, about £22,530 and only for an older employee at the cap for the full 20 years. GB's age banding pays under-22s half a week per year; Ireland pays everyone the same rate.
Which system applies to you
What matters is where the employment is legally based, not the employer's headquarters or your passport. Cross-border workers around the Northern Ireland border should check which jurisdiction's employment law governs the contract; the answer decides the formula, the cap and the tax treatment. Take advice where the contract is unclear.
GB and NI figures are stated for orientation only and change each April; this site's calculator implements the Irish scheme. Nothing here is legal or tax advice.