data tool

Statutory redundancy calculator for Ireland

Irish statutory redundancy is two weeks' pay for every year of reckonable service plus one extra week, with part years counted in proportion and weekly pay capped at €600. It needs at least 104 weeks of continuous service. This calculator turns the service dates and weekly pay into the lump sum.

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How it works

  1. 1

    Enter the dates

    Type the first day and the last day of continuous employment.

  2. 2

    Enter weekly pay

    Type gross weekly pay, including regular overtime where it is part of normal pay.

  3. 3

    Take off any gaps

    If some absence does not count as reckonable service, type the number of days to deduct.

  4. 4

    Read the lump sum

    The tiles show the statutory sum, the weeks of pay, the reckonable years and the weekly pay used.

Two weeks a year, plus one

The statutory payment is two weeks' pay for each year of reckonable service and one bonus week on top, according to Citizens Information. Part years count in proportion, so 6 years and half a year is 13 weeks plus one, 14 weeks in all. Someone with exactly 10 years on €800 a week gets 21 weeks at the capped €600, which is €12,600. Below 104 weeks of service there is no statutory entitlement, though an employer may still pay something.

A worked example in days

Take someone who started on 4 February 2019 and finished on 25 September 2026 on €540 a week, with 28 days of non reckonable absence. The service runs to 2,791 days; less 28 that is 2,763 reckonable days, or 7.57 years. Two weeks for each year is 15.14 weeks, plus the bonus week makes 16.14 weeks, and at €540 a week the statutory sum is about €8,715. Because €540 is under the cap, the whole wage counts. The example button fills these figures in so the arithmetic can be checked line by line.

Reckonable and non reckonable absence

Most time on the payroll counts, including annual leave, maternity and adoption leave, sick leave up to set limits and time on short time or lay off in some cases. Some periods do not count as reckonable service even though they do not break continuity, such as absence beyond the sick leave limits or a period on lay off over the limit, and those days are deducted. The calculator takes the days you type off the total and counts the rest, so the work of deciding which days are non reckonable stays with the records.

The €600 weekly cap

Weekly pay for the statutory sum is capped at €600, which is €31,200 a year. Someone earning €1,200 a week gets the same statutory sum as someone earning €600. The cap applies only to the statutory amount; an employer can pay an enhanced amount on full pay, which the calculator does not include. Gross pay includes regular overtime and benefits in kind that are part of normal remuneration.

Tax and the lump sum

Statutory redundancy pay is tax free. An ex gratia payment above the statutory amount can also be partly tax free through the basic exemption and its increases, but those reliefs depend on the employee's tax history and are worked out by Revenue rules, not here. The calculator shows only the statutory sum, which is the floor the employer must pay.

Putting it in writing

The employer gives notice of redundancy in writing and shows how the lump sum was worked out. A redundancy letter usually sets out the reason, the notice period, the last day, the statutory sum with its weeks and weekly pay, any extra payment and holiday pay owed. The AI document generator writes that letter from a description that includes the figures from this calculator.

Limits

  • Law checked on 21 October 2026 against the Redundancy Payments Acts 1967 to 2014 and Citizens Information. This is arithmetic, not legal advice.
  • Part years are counted as days over 365; the Department's own calculator may round days slightly differently.
  • Which absences are non reckonable is for you to work out; the tool only deducts the days you type.
  • Statutory minimum only; an ex gratia or enhanced payment is not included.

What it does not do

  • It does not calculate the tax relief on an ex gratia payment.
  • It does not decide whether a dismissal is a genuine redundancy.
  • It does not store the dates or pay.

Questions people ask

How is statutory redundancy calculated in Ireland?

Take the years of reckonable service, including part years, multiply by two weeks' pay, and add one week. Weekly pay is gross pay capped at €600. Ten years on €500 a week is 21 weeks, or €10,500. The employee needs at least 104 weeks of continuous service.

What is the weekly cap for redundancy in Ireland?

€600 a week, or €31,200 a year, according to Citizens Information. Pay above that does not increase the statutory sum, even for a senior employee on a much higher salary. Check Citizens Information for any change before relying on the figure for a dismissal date well in the future.

Is statutory redundancy tax free in Ireland?

Yes, the statutory lump sum is exempt from income tax. Payments above it, called ex gratia payments, may qualify for further exemptions under Revenue's rules on termination payments, and amounts for holiday pay or notice are taxed as normal pay.

Do part years count?

Yes. Service is counted in years and part years, so someone with 7 years and 6 months has 7.5 years of reckonable service and gets 15 weeks plus the bonus week. The calculator counts the days of service and divides by 365.

What if my employer cannot pay?

If the employer is insolvent or cannot pay, the employee can apply to the Department of Social Protection for the statutory amount from the Social Insurance Fund. The Department then pursues the employer. The calculated sum is the same either way.

Do I need 2 years with the same employer?

Yes, 104 weeks of continuous employment with the employer, and the employee must be in insurable employment under the Social Welfare Acts. Service with a previous owner of the business can count if the business transferred, under the transfer of undertakings rules.

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Sources

Written and checked by the OneCraft team. Last checked .