Ireland Redundancy & Severance Calculator 2025
Calculate your statutory redundancy entitlement (2 weeks/year + 1 bonus week capped at €600/wk) and tax exemptions on ex-gratia severance packages (Basic Exemption and SCSB).
Service & Wage Parameters
Statutory calculations are capped at €600.00 per week.
Redundancy Settlement Breakdown Redundancy Payments Act
Irish Severance Payments & Revenue Tax Exemption Limits
| Payment Component | Legal Basis | Tax Treatment | Statutory Cap |
|---|---|---|---|
| Statutory Redundancy | Redundancy Payments Act 1967–2024 | 100% Tax-Free | €600.00 / week |
| Basic Exemption (Ex-Gratia) | Section 201 TCA 1997 | Tax-Free Relief | €10,160 + €765/year |
| SCSB Relief Formula | Schedule 3 TCA 1997 | Alternative Relief | (Avg Pay x Yrs / 15) - Pension |
Principal Hardware & Web Systems Engineer. Specialist in Irish Revenue statutory tax schedules (PAYE, USC, PRSI Class A, Redundancy Payments Act 1967-2024, and Central Bank macroprudential rules).
Frequently Asked Questions (Redundancy Ireland)
How is statutory redundancy calculated in Ireland?
Under the Redundancy Payments Act 1967 as amended, statutory redundancy is calculated as 2 weeks' gross pay for each full year of reckonable continuous service, plus 1 additional week's pay, subject to the statutory weekly wage cap of €600.
Is statutory redundancy subject to tax in Ireland?
No. The statutory redundancy lump sum payment is completely tax-free and exempt from PAYE income tax, Universal Social Charge (USC), and employee PRSI.
What is the minimum service required to qualify for statutory redundancy?
An employee must have completed at least 104 continuous weeks (2 years) of reckonable employment with the employer after reaching age 16 to qualify for statutory redundancy.
What tax relief applies to ex-gratia redundancy payments?
Ex-gratia payments in excess of statutory redundancy can qualify for tax relief under either the Basic Exemption (€10,160 plus €765 per complete year of service) or the Standard Capital Superannuation Benefit (SCSB formula), whichever is higher.
What is the formula for the SCSB exemption?
The SCSB is calculated as: (Average annual earnings for the last 36 months multiplied by complete years of service, divided by 15), minus the present value of any tax-free pension lump sum received or entitled to be received.