How many years do I need to qualify for statutory redundancy?

You must have at least 104 weeks (two years) of continuous service with your employer to qualify for a statutory redundancy payment. Service can remain continuous despite short breaks or a TUPE transfer. If you have less than two years’ service you may still be entitled to proper notice, a fair selection process and possibly an ex-gratia payment.

What is the weekly pay cap for redundancy in Ireland?

A “week’s pay” for statutory redundancy is capped at €600 per week (gross). If you earn more than €600 gross per week, the calculation still uses €600. Any earnings above the cap are only relevant to an enhanced or ex-gratia package negotiated with your employer.

Is redundancy capped at 20 years in Ireland?

No. Unlike some other jurisdictions, Irish statutory redundancy is not capped at 20 years of service — all of your reckonable service counts. The only cap is on the weekly pay figure used (€600).

Who pays statutory redundancy in Ireland?

Your employer is responsible for paying your statutory redundancy. If the employer is genuinely unable to pay because it is insolvent, the payment can be made from the Social Insurance Fund, and the State then recovers it from the employer. A solicitor can help you claim where an employer refuses to pay or has become insolvent.

Is my statutory redundancy payment taxable?

The statutory redundancy lump sum is normally exempt from income tax, USC and PRSI. Additional ex-gratia or enhanced payments may be partly taxable depending on the relief available. You should confirm the tax treatment of your specific payment with your accountant.

Redundancy Calculator Ireland

Work out your statutory redundancy pay in seconds — free, private, no sign-up.

Statutory Redundancy Calculator (Ireland)

Estimate your statutory redundancy lump sum under the Redundancy Payments Acts 1967–2014. Nothing you type is sent anywhere or stored — the calculation happens entirely in your browser.

Gross weekly pay (€)Capped at €600 for the calculation

Full years of service

Additional months

Important: This tool gives an estimate of your statutory redundancy entitlement only. It is not legal or tax advice. Reckonable service can be reduced by certain periods of absence, and any ex-gratia/enhanced terms are separate. The tax treatment of any payment you receive should be confirmed with your own accountant. For advice on your specific situation, contact Richard O’Shea at Mary Molloy & Co Solicitors.

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How the redundancy calculation works

Statutory redundancy in Ireland is set out in the Redundancy Payments Acts 1967–2014. If you have at least 104 weeks (two years) of continuous service, you are entitled to a lump sum of two weeks’ gross pay for every year of reckonable service, plus one additional bonus week. Your gross weekly pay is capped at €600 for this purpose, so the maximum “week’s pay” counted is €600 even if you earn more.

The statutory lump sum is normally tax-free. Many employers also offer an enhanced or ex-gratia package on top of the statutory minimum — that part is negotiated separately and may be taxable. If you believe your selection was unfair, or your employer has miscalculated or refused to pay, you may have a claim at the Workplace Relations Commission.

Worked example

An employee with 10 years’ service earning €800 gross per week: weekly pay is capped at €600. Weeks’ entitlement = (2 × 10) + 1 = 21 weeks. Statutory lump sum = 21 × €600 = €12,600 (tax-free).

Related guidance

Redundancy Calculator: Frequently Asked Questions

Statutory redundancy in Ireland is two weeks’ gross pay for each year of reckonable service, plus one additional bonus week. Gross weekly pay is capped at €600 for the calculation. So the formula is: ((2 × years of service) + 1) × weekly pay (max €600). The statutory lump sum is normally tax-free.