The Actual Cost

Ireland - Redundancy 2026

Ireland redundancy calculator

Under Irish law you are entitled to two weeks pay for every year of service plus one bonus week, with weekly pay capped at EUR600. The statutory amount is completely tax-free. Enter your details to see exactly what you are owed.

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Weekly pay is capped at EUR600 for statutory redundancy regardless of actual earnings
Minimum 2 years required to qualify. Part years count pro-rata.
Statutory minimum is 2 weeks per year. Leave blank for statutory only.
Statutory minimum: 1 wk (under 2 yrs), 2 wks (2-5 yrs), 4 wks (5-10 yrs), 6 wks (10-15 yrs), 8 wks (15+ yrs)

Statutory redundancy pay

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How Irish statutory redundancy is calculated

The formula set out in the Redundancy Payments Acts is: two weeks gross pay for every year of continuous service, plus one additional bonus week. Weekly pay is capped at EUR600 regardless of what you actually earn. Part years of service count on a pro-rata basis.

So a worker with 10 years of service earning EUR800 per week would receive: (10 x 2 + 1) x EUR600 = EUR12,600. The EUR600 cap applies even though their weekly pay is EUR800. The entire EUR12,600 is completely tax-free.

What qualifies as continuous service?

Continuous service means unbroken employment with the same employer. Periods of sick leave (up to 26 weeks), maternity leave, paternity leave and other statutory leave count as reckonable service. A change of employer due to a business transfer (TUPE) preserves your service entitlement with the new employer.

Is statutory redundancy taxable?

Statutory redundancy pay is completely tax-free in Ireland. It does not count as income for PAYE, USC or PRSI purposes. However, any amount above the statutory entitlement (enhanced or ex-gratia payments) may be subject to tax, depending on the Basic Exemption relief available to you. The Basic Exemption is EUR10,160 plus EUR765 for each full year of service. Beyond that, a further EUR10,000 exemption may apply if you have not received a lump sum from an occupational pension scheme.

What if your employer cannot pay?

If your employer is insolvent and cannot pay your statutory redundancy, you can apply to the Social Insurance Fund managed by the Department of Social Protection. The state will pay your statutory entitlement in this case. You will need your RP50 form and documentation of your employment.

Notice period entitlement

Separately from redundancy pay, you are entitled to a minimum notice period. For service of 13 weeks to 2 years: 1 week. For 2 to 5 years: 2 weeks. For 5 to 10 years: 4 weeks. For 10 to 15 years: 6 weeks. For 15 or more years: 8 weeks. If you are paid in lieu of notice (PILON) rather than working your notice, that payment is also tax-free.