CodeKitHubWhat Is This Tool?
Statutory redundancy is a legal minimum lump-sum payment owed to eligible employees in Ireland when their role is made redundant, calculated based on gross weekly pay and years of continuous service — separate from any notice pay, holiday pay or ex-gratia (voluntary top-up) payment your employer may also offer.
The formula is 2 weeks' gross pay for every year of service, plus 1 additional bonus week. Weekly pay is your average gross weekly earnings, but the calculation uses at most €600 per week — if you earn more than that, the excess isn't counted toward the statutory minimum.
To qualify, you generally need at least 104 weeks (2 years) of continuous service with the same employer at the date of dismissal. Under 2 years of service, there's no statutory entitlement (though an employer may still choose to pay something voluntarily).
Statutory redundancy payments are completely exempt from income tax, USC (Universal Social Charge) and PRSI in Ireland — the full amount calculated is what you receive.
Source: Redundancy Payments Acts 1967–2007, as summarized by Citizens Information and multiple 2026 Irish payroll/HR guides.
Why Use It?
- Applies the exact statutory formula and €600 weekly cap automatically.
- Flags when you don't meet the 2-year service minimum, instead of showing a misleading number.
- Works for any weekly pay and years of service combination.
- Free and instant — no signup, the calculation runs entirely in your browser.
How to Use
- Enter your average gross weekly pay in euros.
- Enter your full years of continuous service with the employer.
- Read your estimated statutory redundancy payment.
Example
Input
Average gross weekly pay €800, 10 years of serviceOutput
Estimated payment: €12,600.00Weekly pay is capped at €600 (since €800 exceeds the cap). (2 × €600 × 10) + €600 = €12,000 + €600 = €12,600.00.
Redundancy formula at a glance
| Component | Value |
|---|---|
| Formula | (2 × weekly pay × years of service) + 1 × weekly pay |
| Weekly pay cap | €600 |
| Minimum service | 104 weeks (2 years) continuous service |
| Tax treatment | Fully exempt from income tax, USC and PRSI |
Related tools
These calculators cover similar end-of-employment benefits in other countries.
→ Gulf Gratuity Calculator · Gratuity Calculator (India) · Retrenchment Calculator (South Africa)
Frequently Asked Questions
Why is my weekly pay capped at €600?
The statutory redundancy formula only counts up to €600 of your average gross weekly pay, even if you earn more. This cap is set by the Redundancy Payments Acts and hasn't changed to match wage inflation in recent years — it means higher earners' statutory entitlement is proportionally smaller relative to their actual salary.
What if I have less than 2 years of service?
You're not entitled to a statutory redundancy payment — the minimum requirement is 104 weeks (2 years) of continuous service with the same employer. Your employer might still choose to pay you an ex-gratia amount voluntarily, but it isn't a legal requirement.
Is the statutory redundancy payment taxed?
No — statutory redundancy payments are fully exempt from income tax, USC and PRSI in Ireland. Any additional ex-gratia payment on top of the statutory amount may be partially taxable, subject to separate exemption thresholds.
Does this include notice pay or holiday pay?
No — this calculates only the statutory redundancy lump sum. Notice pay (or pay in lieu of notice) and any accrued but untaken holiday pay are separate entitlements, calculated and paid independently.
Is my data stored anywhere?
No. The calculation runs with JavaScript directly in your browser; your salary is never sent to a server or stored anywhere.