Redundancy Calculator (Ireland)
Updated November 2026 · Free · No sign-up
Calculate Irish statutory redundancy — two weeks’ pay per year of service + one bonus week, capped at €600/week, tax-free, after two years of insurable service.
Quick answer: Irish statutory redundancy = (2 weeks × years of service + 1 week) × weekly pay, capped at €600/week — entirely tax-free. Eligibility: 2+ years (104 weeks) of insurable employment. 8 years at €900/week: (16+1) × 600 = €10,200.
The Statutory Formula
(2 weeks per year of service — including fractions pro-rata — plus one bonus week) × weekly pay, with weekly pay capped at €600. The cap means everyone earning €600+ computes identically; the excess is negotiation territory (ex-gratia packages).
Worked Examples
Example 1. 8 years, €900/week: capped at 600 → 17 weeks × 600 = €10,200 tax-free.
Example 2 — fractions. 5 years 6 months: (2 × 5.5 + 1) = 12 weeks × capped pay — part-years count pro-rata, unlike many systems.
Example 3 — ex-gratia on top. Employers commonly add 2-6 weeks/year ex-gratia; THOSE taxes under the termination-payment reliefs (basic exemption €10,160 + €765/year, SCSB for long servers) — structuring the split matters at signing.
Process Rights
| Eligibility | 104+ weeks of insurable service, genuine redundancy (role gone) |
| Notice | Statutory minimum notice runs separately (see the notice page) |
| Lay-off/short-time route | 4+ weeks of lay-off can let EMPLOYEES trigger redundancy claims |
| Collective rules | 30-day consultation + ministerial notification at scale thresholds |
| Claims | WRC within 52 weeks where employers fail to pay |
Tax Structuring (Where Real Money Hides)
Statutory redundancy: fully tax-free. Ex-gratia: exempt up to the BASIC exemption (€10,160 + €765 per year), the increased exemption (+€10,000 conditions), or SCSB (average-salary formula favoring long-serving higher earners) — electing the right relief swings thousands; get the computation before signing. Jobseeker’s Benefit interacts with large packages via waiting periods — sequence the claims.
Frequently Asked Questions
How is redundancy calculated in Ireland?
Two weeks’ pay per year of service (fractions pro-rata) plus one bonus week, with pay capped at €600/week — tax-free, after 104 weeks of insurable service.
What is the €600 cap?
The statutory ceiling on the weekly pay used in the formula — earnings above it only matter for ex-gratia negotiation, not the statutory sum.
Is Irish redundancy taxable?
Statutory redundancy is fully tax-free; ex-gratia extras use the basic/increased exemptions or SCSB — relief election is worth real money.
Can I claim redundancy after lay-off?
Yes — 4+ consecutive weeks of lay-off/short-time (or 6 in 13) lets the employee serve notice claiming redundancy, with counter-notice rules.
What if the employer can’t or won’t pay?
The Social Insurance Fund covers defaulting/insolvent employers — claim through the WRC/DSP paths within 52 weeks.
✓ Formula verified • Last updated: November 3, 2026