Irish money
Redundancy pay and tax calculator
Statutory weeks at the €600 cap, then basic, increased and SCSB relief.
Last updated: October 2026
How to use it
- Enter complete years and any extra days of reckonable service, and a week’s pay. Pay above €600 is capped for the statutory sum.
- Enter an ex-gratia lump sum if the employer is paying one on top of statutory redundancy.
- Enter a pension lump sum and the average pay for the last 36 months if you want the increased exemption and the SCSB compared.
How it's calculated
Statutory redundancy is 2 weeks’ pay for each year of reckonable service, plus 1 bonus week, after 2 complete years. The Department’s examples round the years (complete years plus extra days divided by 365) to two decimals, then round the weeks to two decimals. Weekly pay is capped at €600.00. Statutory redundancy is tax-free on its own and is not subtracted from the ex-gratia exemptions.
The tax-free part of an ex-gratia payment is the highest of three amounts. The basic exemption is €10,160.00 plus €765.00 for each complete year, with a lifetime cap of €200,000.00. The increased exemption adds up to €10,000.00, reduced by a tax-free pension lump sum. The SCSB is one fifteenth of average annual pay for the last 36 months, times the complete years, minus the pension lump sum. This page does not charge USC or PRSI on the taxable balance, and it does not remove non-reckonable absences for you.
Worked examples
The Department’s example of Joe: 23 years and 40 days at €600 a week. The service is 23.11 years and the weeks are 47.22. Statutory redundancy is €28,332.00. June’s example is 20 years and 6 days at €761.92 a week, capped at €600.00, which is 41.04 weeks and €24,624.00.
Revenue’s example of Eileen: 18 complete years, an ex-gratia payment of €60,000, a pension lump sum of €11,000, and €95,000 of pay over the last three years. The basic exemption is €23,930.00. The increased exemption is not available because the pension lump sum is over €10,000. The SCSB is €27,000.00. The taxable balance is €33,000.00.
Revenue’s example of Tom: 35 complete years, an ex-gratia payment of €200,000 and a pension lump sum of €5,000, claiming the increase. The basic exemption is €36,935.00 and the increased exemption is €41,935.00. With no average pay entered, the SCSB is €0.00, so the tax-free amount is €41,935.00 and the taxable balance is €158,065.00.
Sources
Department of Social Protection: redundancy calculation examples, Revenue: basic exemption, Revenue: increased exemption, Revenue: SCSB.
I check these figures after each Budget or Finance Act and when a rate changes. The calculation runs in this browser. Nothing you type is stored or uploaded. Corrections: [email protected].
Questions
Is statutory redundancy taxed?
Statutory redundancy under the scheme is tax-free. It is not part of the €10,160 basic exemption. An extra ex-gratia payment is tested against the basic exemption, the increased exemption and the SCSB.
How do I turn a monthly wage into a week?
This page asks for the weekly figure. A monthly wage divided by 4.33 is one way to estimate a week. It does not convert a month for you.
What service is left out?
Service before age 16 is excluded. Some absences in the last three years, such as lay-off, strike, and long illness, are non-reckonable. Take those days out before you type the years. This page does not apply that exclusion itself.
Why might my SCSB differ from Revenue’s rounded table?
Revenue’s Eileen page shows rounded intermediate lines and an SCSB of €27,000. This page multiplies the unrounded average by the years, divides by 15, subtracts the pension lump sum, and rounds once at the end, which lands on the same €27,000 when the three-year pay is €95,000.
Does the tax line include USC and PRSI?
No. If you enter other taxable pay, the extra tax is income tax only, for a single person in 2026, on the taxable ex-gratia balance. USC and PRSI are not charged on that balance here.