Redundancy Calculator Ireland 2026

Redundancy Calculator Ireland 2026: Enter normal weekly pay and complete years of service to estimate statutory redundancy using the €600 weekly cap. Select Advanced calculation to estimate the tax-free portion of a separate ex-gratia termination payment under Revenue’s basic/increased exemptions and SCSB. The taxable balance is not a final after-tax payout; individual PAYE circumstances affect tax withheld.

For the detailed legal explanation, read Redundancy Tax Ireland: Statutory Pay, Ex-Gratia and SCSB. To model earnings in another job, use the Take-Home Pay Calculator.

How statutory redundancy is calculated in Ireland

The statutory redundancy formula is straightforward once the eligible weekly remuneration and complete years of service are known.

For an eligible employee, statutory redundancy is generally:

two weeks’ normal weekly remuneration for each complete year of service, plus one bonus week.

The normal weekly remuneration used for the statutory calculation is capped at €600. That ceiling is important because somebody earning €900 or €1,200 a week does not use their full weekly salary in the statutory calculation. The calculator therefore uses the lower of actual weekly remuneration and €600.

A person normally needs at least 104 weeks of continuous service to qualify for statutory redundancy. The calculator checks the two-year service threshold, but it does not decide whether the employment situation legally qualifies as a redundancy or resolve unusual continuity-of-service questions.

If your service history includes breaks, transfers, changes of employer, parental leave, lay-off periods or other complexities, the legal entitlement should be checked separately.

You can also read the wider redundancy guide for Ireland for the difference between statutory and ex-gratia payments. If you are comparing the package with ongoing employment income, the Take-Home Pay Calculator can help separate a once-off termination payment from normal monthly net pay.

Why the €600 weekly ceiling matters

The statutory weekly ceiling means higher salary does not keep increasing the statutory payment indefinitely.

For example, an employee earning €500 a week and an employee earning €600 a week use their actual weekly pay. An employee earning €800 a week still uses €600 in the statutory formula.

This can create a large gap between what an employee imagines when hearing “two weeks per year” and the amount produced by the statutory formula.

The calculator makes the capped weekly figure visible so that the result can be traced back to the input.

Statutory redundancy and ex-gratia payments are different

A statutory redundancy payment is the minimum statutory amount due where the employee qualifies.

An employer may also offer an additional payment. This is commonly described as an ex-gratia termination payment.

The tax treatment is different.

Revenue states that statutory redundancy is exempt from Income Tax and USC. A qualifying non-contractual ex-gratia payment may also receive an exemption, but the amount depends on Revenue’s termination-payment rules.

That is why Basic mode and Advanced mode are deliberately separate.

Basic mode answers: what is the estimated statutory redundancy amount?

Advanced mode asks: if there is an additional ex-gratia payment, how much may qualify for exemption under the main Revenue methods?

The basic exemption

Revenue’s basic exemption for qualifying termination payments is:

€10,160 plus €765 for each complete year of service.

This is not the statutory redundancy formula.

For example, with 10 complete years of service:

• fixed amount: €10,160
• service amount: 10 × €765 = €7,650
• basic exemption: €17,810

The exemption is applied to the qualifying termination payment, not to contractual salary or normal taxable employment income.

The increased exemption

A potential increased exemption can add up to €10,000 to the basic exemption where Revenue’s conditions are satisfied.

The availability of the extra amount can be affected by pension lump-sum rights. In particular, relevant tax-free pension lump-sum entitlements can reduce the extra €10,000.

The calculator therefore asks for pension lump-sum rights in Advanced mode.

The checkbox for increased-exemption eligibility is intentionally described as “potentially eligible”. It does not make a legal or tax determination. It simply allows you to model the route where the conditions are assumed to be satisfied.

Standard Capital Superannuation Benefit (SCSB)

SCSB is another method of calculating the tax-free amount of a qualifying termination payment.

The broad structure is:

average annual remuneration over the final 36 months ÷ 15 × complete years of service, less relevant pension lump-sum rights.

For example, if average annual remuneration is €60,000 and service is 10 years:

€60,000 ÷ 15 × 10 = €40,000 before any deduction for relevant pension lump-sum rights.

The calculator compares the modelled SCSB amount with the basic and increased exemptions and shows the highest result before the lifetime exemption cap.

That comparison matters because the most favourable route can differ between employees.

The €200,000 lifetime exemption limit

Revenue applies a lifetime ceiling to tax-free qualifying termination payments.

If a person has already used part of the available lifetime exemption on a previous termination payment, the remaining amount can be lower.

Advanced mode therefore includes an input for previous exempt termination lump sums counted toward the lifetime limit.

This is particularly relevant for people who have received large termination payments from earlier employers.

What should not be entered as ex-gratia redundancy

Not every amount paid when employment ends qualifies for termination-payment exemptions.

Common examples that may remain taxable as normal pay include:

• salary due up to the termination date;
• holiday pay;
• bonuses;
• contractual pay in lieu of notice;
• other contractual employment payments.

A termination agreement can contain several components with different tax treatment. Before using Advanced mode, separate the genuine non-contractual ex-gratia amount from the contractual amounts.

Worked examples

Five years of service on €500 per week

Weekly remuneration is below the €600 ceiling.

Two weeks for each of five years gives 10 weeks. Add the bonus week and the total is 11 weeks.

11 × €500 = €5,500

Estimated statutory redundancy: €5,500.

Ten years of service on €800 per week

The actual weekly pay is above the statutory ceiling, so the calculator uses €600.

Two weeks for each of 10 years gives 20 weeks. Add the bonus week and the total is 21 weeks.

21 × €600 = €12,600

Estimated statutory redundancy: €12,600.

Twenty years of service on €600 per week

Two weeks for each of 20 years gives 40 weeks. Add one bonus week.

41 × €600 = €24,600

Estimated statutory redundancy: €24,600.

These examples illustrate only the statutory formula. They do not prove that a particular employment situation legally qualifies for redundancy.

Method and limitations

Basic mode applies the statutory formula to complete years of service and caps normal weekly remuneration at €600. It assumes the service entered is eligible continuous service.

Advanced mode treats the ex-gratia input as a qualifying non-contractual termination payment. It calculates the basic exemption, a potential increased exemption and SCSB, then compares those results and applies the remaining lifetime exemption entered.

The calculator does not determine:

• whether the dismissal legally constitutes redundancy;
• whether service is continuous under every employment-law rule;
• whether the increased exemption conditions are actually satisfied;
• the contractual status of pay in lieu of notice;
• whether a payment is compensation for another legal claim;
• the exact pension lump-sum rights Revenue will use; or
• the final payroll treatment of a termination package.

For a material package, use the calculator as a transparent first estimate and verify the terms against current Revenue guidance and, where appropriate, professional tax or employment-law advice.

Frequently asked questions

How much redundancy am I entitled to after 10 years in Ireland?

If you meet the statutory eligibility rules, the formula is two weeks’ capped weekly remuneration for each complete year plus one bonus week. At the €600 weekly ceiling, 10 complete years gives €12,600.

What is the maximum weekly pay used for statutory redundancy?

The current statutory weekly remuneration ceiling is €600.

Is statutory redundancy tax free?

Revenue states that statutory redundancy is exempt from Income Tax and USC.

What is the basic exemption on an ex-gratia payment?

It is €10,160 plus €765 for each complete year of service.

What is SCSB?

SCSB is an alternative method of calculating the tax-free portion of a qualifying termination payment using average remuneration, service and pension lump-sum rights.

Is pay in lieu of notice tax free?

A contractual payment in lieu of notice is taxable as pay. The exact treatment depends on the employment contract and facts.

Do I need two years of service?

Statutory redundancy normally requires at least 104 weeks of continuous service, alongside the other statutory conditions.