Quick answer
- The standard statutory formula uses two weeks’ gross pay per year of service plus one bonus week.
- The normal gross weekly pay used in the formula is capped at €600.
- An employee generally needs at least 104 weeks of continuous service to qualify for statutory redundancy.
- Extra employer redundancy payments can go beyond the statutory amount and need separate tax treatment.
Redundancy Pay Calculator
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The statutory formula
For a simplified full-year estimate, use:
Statutory redundancy = (2 × years of reckonable service + 1 bonus week) × weekly pay used
| Part | Meaning |
|---|---|
| Two weeks per year | Each year of reckonable service adds two statutory weeks. |
| One bonus week | One additional week is added once, not once per year. |
| Weekly pay used | Normal gross weekly pay, capped at €600. |
| Minimum service | At least 104 weeks of continuous service is generally required. |
Examples for 5, 10 and 20 years of service
| Service | Actual weekly pay | Calculation | Estimate |
|---|---|---|---|
| 5 years | €500 | (2 × 5 + 1) × €500 | €5,500 |
| 10 years | €600 | (2 × 10 + 1) × €600 | €12,600 |
| 20 years | €800 | (2 × 20 + 1) × €600 capped pay | €24,600 |
These examples use complete years for clarity. The official method and our calculator can include part of a year from the employment dates.
How the €600 weekly pay cap changes the result
If normal gross weekly pay is more than €600, the statutory calculation still uses €600. For 20 years of service, the formula produces 41 statutory weeks. At €800 per week an uncapped illustration would be €32,800, but the statutory capped estimate is €24,600—a difference of €8,200.
Reckonable service and the 104-week rule
Eligibility generally requires at least 104 weeks of continuous employment. The payment itself is based on reckonable service from age 16. In the final three years, some absences remain reckonable while temporary lay-off, strike and longer periods of certain illness can be excluded. Use exact dates and enter known non-reckonable weeks rather than assuming every calendar week counts.
What the calculator does not decide
- Whether the redundancy is genuine or fair.
- Whether all service is reckonable in a complex employment history.
- Whether an enhanced employer package applies.
- Whether a dispute, insolvency or collective redundancy process changes the next steps.
Frequently asked questions
How is statutory redundancy calculated in Ireland?
It is generally two weeks’ gross pay per year of service plus one bonus week, subject to the statutory weekly pay ceiling.
Do I need two years of service for redundancy pay?
For statutory redundancy, an employee generally needs at least 104 weeks of continuous service.
What is the maximum weekly pay used for redundancy?
The statutory formula uses no more than €600 per week, even where normal gross weekly pay is higher.
How much redundancy pay after 10 years?
At the €600 weekly ceiling, 10 complete years gives 21 statutory weeks and an illustrative statutory amount of €12,600. Exact service dates can produce a slightly different result.
Does voluntary redundancy use the same formula?
The statutory minimum uses the same formula where entitlement applies. A voluntary package may also include an enhanced or ex-gratia amount above that minimum.
Is statutory redundancy taxable?
Statutory redundancy is generally tax-free. Extra payments above the statutory amount can have different tax treatment.
Sources & references
- Workplace Relations Commission: Annual Leave
- Workplace Relations Commission: Public Holidays
- Workplace Relations Commission: Sunday Premium Entitlement
- Workplace Relations Commission: Working Hours
- Workplace Relations Commission: Redundancy
- Workplace Relations Commission: Minimum Notice
- Citizens Information: Redundancy Payments
- Department of Enterprise: Redundancy
- Department of Social Protection: Redundancy Payment Scheme
- MyWelfare: Official Redundancy Calculator
- Revenue: Lump Sum Payments
- Revenue: Basic Exemption
- Revenue: Increased Exemption
- Revenue: Standard Capital Superannuation Benefit
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