Redundancy Pay Ireland 2026 — How to Calculate What You Are Owed
Redundancy Pay in Ireland
If you are made redundant in Ireland with 2 or more years of service, you are legally entitled to statutory redundancy pay. Here is exactly how to calculate it, what is tax-free, and what to do if your employer does not pay.
Redundancy Pay Ireland 2026 — At a glance
- Formula
- 2 weeks × years + 1 bonus week
- Weekly pay cap
- €600/week
- Minimum service
- 2 continuous years
- Statutory amount tax
- Tax-free
- Ex-gratia exemption
- €10,160 + €765/year service
- If employer won't pay
- Claim from Social Insurance Fund
Key facts — Redundancy Pay 2026
How to calculate your redundancy pay
The statutory redundancy formula is straightforward:
Weekly pay cap: €600 — earnings above this are not counted
Examples
- 3 years service, €500/week: (3 × 2 × €500) + €500 = €3,500
- 5 years service, €700/week (capped at €600): (5 × 2 × €600) + €600 = €6,600
- 10 years service, €400/week: (10 × 2 × €400) + €400 = €8,400
- 15 years service, €1,000/week (capped at €600): (15 × 2 × €600) + €600 = €18,600
Note: part years of service are calculated on a pro-rata basis. A year and a half counts as 1.5 years.
Who qualifies for redundancy pay?
- You have been employed by the same employer for at least 2 continuous years
- You are aged 16 or over
- You work under a contract of employment (employees only — not self-employed contractors)
- You have been genuinely made redundant (not dismissed for cause, and not resigned)
- You normally work at least 8 hours per week
Tax treatment of redundancy payments
The statutory redundancy amount is completely exempt from income tax. If your employer pays an additional ex-gratia sum above the statutory amount, a further tax exemption may apply:
- Basic Exemption: €10,160 plus €765 for each full year of service — tax-free
- Increased Exemption: Up to €10,000 additional if you have not claimed this in the last 10 years
- Standard Capital Superannuation Benefit (SCSB): May apply for long-serving, higher-paid employees — calculated as 1/15th of average salary for each year, less pension entitlements
What to do if your employer does not pay
- Make a written request
Write to your employer requesting payment of statutory redundancy. Keep a copy. They are legally required to pay within 6 weeks of notice of redundancy.
- Apply to the Social Insurance Fund
If your employer refuses or cannot pay (e.g., insolvency), apply to the Department of Enterprise, Trade and Employment for payment from the Social Insurance Fund using form RP77.
- Bring a claim to the WRC
If your employer wrongly refuses to pay, file a claim with the Workplace Relations Commission (WRC). The process is free and can be done online at workplacerelations.ie.
Frequently asked questions
How is redundancy pay calculated in Ireland?
2 weeks' gross pay per year of service, plus 1 bonus week. Weekly pay is capped at €600. Example: 5 years at €700/week (capped at €600) = (5 x 2 x €600) + €600 = €6,600.
How long do I need to work to get redundancy pay?
At least 2 years of continuous service with the same employer. Service before age 16 does not count. Part-time workers who work at least 8 hours per week are also entitled.
Is redundancy pay taxable?
The statutory redundancy amount is fully exempt from income tax. Ex-gratia amounts above the statutory payment have their own tax exemptions (Basic Exemption of €10,160 + €765 per year of service).
What if my employer refuses to pay?
Apply to the Social Insurance Fund using form RP77, or bring a claim to the Workplace Relations Commission (WRC). The WRC process is free.
Does redundancy affect my social welfare?
Statutory redundancy does not affect Jobseeker's Allowance. However, large redundancy payments (over €50,000) may defer your Jobseeker's Benefit entitlement for up to 9 weeks.
Can I negotiate more than the statutory amount?
Yes. The statutory redundancy is the legal minimum. Many employers offer additional ex-gratia payments. You can negotiate — but any amount above statutory is at the employer's discretion.
- The €600/week cap applies to the calculation — if you earn more than €600/week, only €600 is used in the formula, not your actual salary.
- Statutory redundancy is the legal minimum — your employer can pay more (ex-gratia), but cannot pay less than the statutory amount.
- You cannot negotiate away your right to statutory redundancy — any agreement that removes this right is not enforceable.
- Redundancy pay is distinct from notice pay — you are entitled to notice pay separately, in addition to redundancy pay.
- Being offered a similar job by the same employer may end your redundancy entitlement — if you unreasonably refuse a suitable alternative, you may lose the right to statutory pay.
- An employer's insolvency does not cancel your entitlement — you can claim from the Social Insurance Fund using form RP77.
Official sources
This page is reviewed against official Irish government guidance and updated whenever redundancy rules or tax exemptions change.
This page was reviewed against official Irish government guidance and updated to reflect current statutory redundancy pay rules, tax exemptions and enforcement processes.