How much is the legal minimum redundancy?

Two weeks' pay before tax for each year of service plus one extra week, with weekly pay capped at €600. You need at least 104 weeks' service. Twenty years at €600 or more is 41 weeks: €24,600.

Is redundancy pay taxed?

The legal minimum is free of tax, USC and PRSI. Extra payments are tax-free up to the highest of three amounts. The basic one is €10,160 plus €765 a year of service. The increased one adds up to €10,000. The third is SCSB (see below). There's a €200,000 lifetime limit. Above that, income tax and USC are charged, but no PRSI.

What is the Standard Capital Superannuation Benefit (SCSB)?

Your average pay over the last three years, divided by 15, times your full years of service, less any tax-free pension lump sum. It usually beats the basic tax-free amount for long-serving, well-paid staff.

Leaving a job

Redundancy pay and tax

Your legal minimum redundancy, the tax-free part of any extra payment, and what you keep after tax.

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Common questions

How much is the legal minimum redundancy?: Two weeks' pay before tax for each year of service plus one extra week, with weekly pay capped at €600. You need at least 104 weeks' service. Twenty years at €600 or more is 41 weeks: €24,600.
Is redundancy pay taxed?: The legal minimum is free of tax, USC and PRSI. Extra payments are tax-free up to the highest of three amounts. The basic one is €10,160 plus €765 a year of service. The increased one adds up to €10,000. The third is SCSB (see below). There's a €200,000 lifetime limit. Above that, income tax and USC are charged, but no PRSI.
What is the Standard Capital Superannuation Benefit (SCSB)?: Your average pay over the last three years, divided by 15, times your full years of service, less any tax-free pension lump sum. It usually beats the basic tax-free amount for long-serving, well-paid staff.

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