Redundancy Pay in Ireland
Reviewed by the Commoner Law Editorial Team. Sourced from Irish Acts of the Oireachtas, statutory instruments, and official guidance. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
Ireland Statutory Redundancy Calculator
Estimate only. Reflects the Redundancy Payments Acts 1967–2022 (2 weeks per reckonable year + 1 bonus week, capped at €600/week). Excludes ex-gratia top-ups, the SCSB tax exemption, and unusual continuity-of-service issues. Verify against Citizens Information before relying on the figure.
Enter date of birth, start, end, and weekly gross pay to estimate your statutory redundancy.
What is this right?
If your job genuinely disappears — because the business is closing, your workplace is shutting, or fewer workers are needed — you are entitled to statutory redundancy pay.
The formula is:
- Two weeks' pay for every complete year of service (based on gross weekly pay, capped at €600 per week)
- Plus one additional week's pay (also capped at €600)
- Complete years only — partial years are not rounded up. 9 years 8 months = 9 years for the calculation.
For example, 10 years of service at €600/week = (10 × 2 × €600) + €600 = €12,600.
Statutory redundancy is fully tax-free. Any ex-gratia top-up beyond statutory is also tax-free up to the applicable threshold (Basic Exemption: €10,160 + €765 per year of service; or the Standard Capital Superannuation Benefit formula; overall lifetime cap: €200,000). Amounts above the applicable threshold are taxable.
When does it apply?
- You have been continuously employed for at least 2 years (104 weeks) and are aged 16 or over.
- You are an employee paying PRSI (Class A contributions).
- The redundancy is genuine — the job itself must be disappearing, not just being given to someone else.
- If you are offered suitable alternative work and unreasonably refuse it, you may lose your entitlement.
- Part-time employees are covered — there is no minimum hours threshold.
What to Do If You Are Being Made Redundant in Ireland
Step 1 — Verify your statutory amount with the formula. The €600/week cap and complete-years rule apply even if your actual gross pay is higher.
Worked example (5 years' service, €700/week gross):
- Reckonable weekly pay is capped at €600 (the €700 actual figure is overridden by the cap under Redundancy Payments Act 1967, Sch. 3, para. 8).
- Statutory weeks = (years × 2) + 1 bonus week = (5 × 2) + 1 = 11 weeks.
- Lump sum = 11 × €600 = €6,600 tax-free.
- Compare 10 years' service: (10 × 2) + 1 = 21 weeks × €600 = €12,600. 9 years 8 months still rounds down to 9 years for the calculation = 19 × €600 = €11,400.
Step 2 — Tax treatment of any ex-gratia top-up (SCSB). Statutory redundancy is always tax-free. If your employer pays more than the statutory amount, the excess is taxable income except to the extent it falls within one of three exemptions (Revenue Commissioners — Taxes Consolidation Act 1997, s. 201):
- Basic Exemption: €10,160 + (€765 × complete years of service).
- Increased Exemption: Basic Exemption + €10,000 — only if you have not received a tax-free lump sum in the prior 10 years and either (a) waive any future tax-free pension lump sum, or (b) reduce the €10,000 uplift by any pension lump sum already received.
- SCSB formula (Standard Capital Superannuation Benefit): (Average annual pay over last 36 months × complete years of service ÷ 15) − any tax-free pension lump sum already received. Choose whichever of the three reliefs is highest. SCSB usually wins for long-service / higher-paid employees. Lifetime cap: €200,000.
Step 3 — Notice and forms.
- Your employer must give you at least 2 weeks' written notice of redundancy (more if your contract or the Minimum Notice and Terms of Employment Act 1973 provides for it — up to 8 weeks at 15+ years).
- Form RP6 — employer's notice of redundancy in a temporary lay-off / short-time situation; triggers your right to claim.
- Form RP9 — counter-notice you serve where you have been on lay-off / short-time for at least 4 consecutive weeks (or 6 in 13) and want to claim redundancy. Time-sensitive: must be served within 4 weeks of the end of the lay-off period.
- Form RP50 — employer's claim form to the Social Insurance Fund where the employer cannot pay (insolvency or genuine inability), Part A signed by employer, Part B signed by employee.
- Form RP77 — employee's written request to a solvent employer who has refused to pay statutory redundancy. Serve this before the WRC route.
Step 4 — Escalation. If your employer refuses or disputes and is solvent, bring a claim to the WRC within 1 year of the date of dismissal (extendable to 2 years for reasonable cause under Redundancy Payments Act 1967, s. 24). If your employer is insolvent, apply directly to the Department of Social Protection to claim from the Social Insurance Fund using RP50 — the WRC route is not for insolvent employers. You are entitled to reasonable paid time off to look for new work or arrange training during your notice period (s. 7, Redundancy Payments Act 1979). If you believe the redundancy is not genuine, you can bring a parallel unfair dismissal claim to the WRC under the Unfair Dismissals Acts 1977–2015.
What should you NOT do?
- Don't accept a "redundancy" if the job still exists — if your employer replaces you, it may be unfair dismissal, not redundancy.
- Don't sign a waiver of rights without independent legal advice — you cannot contract out of statutory redundancy.
- Don't unreasonably refuse suitable alternative work — you have a 4-week trial period in the new role. If you turn it down without trying it, you may lose your redundancy payment.
Common Questions
How is statutory redundancy pay calculated in Ireland?
Two weeks' pay for every complete year of service, plus one additional week's pay — all based on gross weekly pay capped at 600 euros per week. Partial years are not counted: 9 years 8 months = 9 years. For example, 10 years at 600 euros per week equals 12,600 euros. The statutory amount is fully tax-free; ex-gratia top-ups above statutory may be partially taxable. You need 104 weeks (2 years) of continuous service and must be aged 16 or over.
What if my employer cannot afford to pay my redundancy in Ireland?
First serve form RP77 on your employer as a written demand for payment. If they are solvent but refuse or dispute, bring a claim to the WRC within 1 year of dismissal. If they are insolvent, apply to the Department of Social Protection to claim from the Social Insurance Fund — the WRC route is for solvent employers only. Form RP50 Part B is the payment certificate — check the calculation uses complete years only and applies the 600 euros per week cap.
What if my job is replaced rather than made redundant in Ireland?
If your employer replaces you, it may be unfair dismissal rather than redundancy — the job itself must be genuinely disappearing. You can bring an unfair dismissal claim to the WRC. If offered suitable alternative work, you get a 4-week trial period in the new role. Refusing without trying it may cost you your redundancy payment.
When does it apply — redundancy pay?
You have been continuously employed for at least 2 years (104 weeks) and are aged 16 or over.You are an employee paying PRSI (Class A contributions).The redundancy is genuine — the job itself must be disappearing, not just being given to someone else.If you are offered suitable alternative work and unreasonably refuse it, you may lose your entitlement.Part-time employees are covered — there is no minimum hours threshold.
What should I do if my employer is making me redundant in Ireland?
Step 1 — Verify your statutory amount with the formula. The €600/week cap and complete-years rule apply even if your actual gross pay is higher.Worked example (5 years' service, €700/week gross):Reckonable weekly pay is capped at €600 (the €700 actual figure is overridden by the cap under Redundancy Payments Act 1967, Sch. 3, para. 8).Statutory weeks = (years × 2) + 1 bonus week = (5 × 2) + 1 = 11 weeks.Lump sum = 11 × €600 = €6,600 tax-free.Compare 10 years' service: (10 × 2) + 1 = 21 weeks × €600 = €12,600. 9 years 8 months still rounds down to 9 years for the calculation = 19 × €600 = €11,4...
What should you NOT do — redundancy pay?
Don't accept a "redundancy" if the job still exists — if your employer replaces you, it may be unfair dismissal, not redundancy.Don't sign a waiver of rights without independent legal advice — you cannot contract out of statutory redundancy.Don't unreasonably refuse suitable alternative work — you have a 4-week trial period in the new role. If you turn it down without trying it, you may lose your redundancy payment.