Employment Guide · 2026
Redundancy Pay Ireland 2026: Complete Guide to Statutory Redundancy
If you've been made redundant in Ireland, you're entitled to statutory redundancy pay calculated by a clear formula: 2 weeks' pay per complete year of service + 1 bonus week, capped at €600 per week. Use our Redundancy Calculator to estimate your entitlement instantly.
Statutory Redundancy Formula — How It Works
The Irish statutory redundancy formula is straightforward. Your entitlement depends on three things: your length of continuous service, your weekly pay (capped at €600), and whether you've worked the minimum qualifying period.
The Formula
Statutory redundancy = (Years of service × 2 + 1) × Weekly pay (capped at €600)
Applies if you have at least 104 weeks (2 years) continuous service. Employment before age 16 does not count.
Examples at Different Service Lengths
| Service Years | Formula | Weeks' Pay | At €600/week |
|---|---|---|---|
| 2 years | 2×2 + 1 | 5 weeks | €3,000 |
| 5 years | 5×2 + 1 | 11 weeks | €6,600 |
| 10 years | 10×2 + 1 | 21 weeks | €12,600 |
| 15 years | 15×2 + 1 | 31 weeks | €18,600 |
| 20 years | 20×2 + 1 | 41 weeks | €24,600 |
| 30 years | 30×2 + 1 | 61 weeks | €36,600 |
* Based on €55,000 salary. Use the Redundancy Calculator for your exact figures.
The €600 Weekly Pay Cap
Your weekly pay is your average gross weekly earnings. For statutory redundancy, this is capped at €600 regardless of your actual salary.
| Annual Salary | Actual Weekly | Capped Weekly | 10yr Statutory |
|---|---|---|---|
| €35,000 | €0 | €600 | €12,600 |
| €45,000 | €0 | €600 | €12,600 |
| €55,000 | €0 | €600 | €12,600 |
| €75,000 | €0 | €600 | €12,600 |
* 10 years = 21 weeks' pay. From €31,200/year upwards, the cap applies.
Minimum Service Requirement (2 Years)
You must have 104 weeks (2 years) of continuous employment with your employer to qualify for statutory redundancy. If you've worked less than 2 years, you are not entitled to statutory redundancy — though your employment contract may provide for notice pay or other payments.
⚠ Important: If you have breaks in service (e.g., leaving and returning), only the most recent continuous period counts. Maternity leave, parental leave, and certain other statutory leaves do not break continuity.
Enhanced Redundancy Packages
Many Irish employers offer enhanced redundancy — a payment above the statutory minimum. This is often expressed as a multiplier (e.g., 2× or 3× statutory).
| Multiplier | Type | 10yr @ €55k |
|---|---|---|
| 1× (statutory) | Legal minimum | €12,115 |
| 2× | Common corporate minimum | €24,231 |
| 3× | Good corporate policy | €36,346 |
| 5× | Excellent / union-negotiated | €60,577 |
Check your employment contract or staff handbook. Enhanced redundancy is not a legal right — it's a contractual or discretionary benefit.
Tax Treatment of Redundancy Pay in Ireland
The tax treatment of redundancy pay in Ireland depends on the type of payment:
| Payment Type | Tax Treatment |
|---|---|
| Statutory redundancy | ✅ Exempt from income tax, USC, and PRSI |
| Enhanced redundancy (ex-gratia) | ⚠ May be taxable — depends on amount and Revenue rules |
| Pay in Lieu of Notice (PILON) | ❌ Fully taxable as earnings (PAYE + USC + PRSI) |
| Outstanding holiday pay | ❌ Fully taxable as earnings |
Use our Redundancy Calculator to see the estimated tax-free versus taxable split.
How to Use the Redundancy Calculator
Enter Your Annual Salary
Input your gross annual salary. The calculator automatically works out your weekly pay and applies the €600 cap if needed.
Enter Your Years of Service
Input your complete years of continuous service. The calculator shows the formula applied: service × 2 + 1 weeks.
Adjust Enhancement & Notice
Add your enhanced multiplier (if your employer offers it) and notice period to see the full package.
Read Your Results
See your statutory pay, enhanced pay, PILON, total package, and estimated take-home. The charts visualise the breakdown.
What to Do If Your Employer Doesn't Pay
If your employer refuses or cannot pay your statutory redundancy, you can apply to the Department of Social Protection for payment through the Insolvency Payments Scheme or the Redundancy Payments Scheme.
- Submit a claim online via the MyWelfare.ie portal
- Revenue will verify your employment and earnings history
- If approved, the Department pays you directly and recovers from your employer
- Enhanced redundancy is not covered by the state scheme — only statutory
💡 Tip: Keep all documentation: your employment contract, payslips, P60, and any written communication about your redundancy. These are essential for making a claim.