Tax on redundancy payments (Ireland)

Statutory redundancy is tax-free. Money on top from your employer (ex-gratia) is only partly tax-free. See how much.

Tax-free part
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Enter only the money on top of your statutory redundancy. Statutory redundancy is tax-free on its own, so use the redundancy pay calculator for that.

Questions

Is redundancy pay taxed in Ireland?

Statutory redundancy is tax-free. Extra money from your employer on top is taxable, except for the part covered by Revenue's exemptions.

What is the basic exemption?

€10,160 plus €765 for each full year you worked for the employer making the payment. A termination payment up to that amount is tax-free.

What is the increased exemption?

Up to €10,000 extra, reduced by any tax-free lump sum from a work pension. You can't use it if you claimed more than the basic exemption on a termination payment in the last ten years.

What is SCSB?

Standard Capital Superannuation Benefit. It is one fifteenth of your average yearly pay over the last 36 months, times your full years of service, less any tax-free pension lump sum. Your employer applies whichever of the three gives you the most.

Does statutory redundancy reduce my exemption?

We could not confirm this from Revenue's guidance, and this calculator treats the amount you enter as the payment on top of statutory redundancy. Ask your employer's payroll team to confirm your exact tax-free amount.

Is pay in lieu of notice covered?

If your contract says you get it on termination, it is taxed as normal pay and the exemptions do not apply. There is also a lifetime tax-free limit of €200,000 on these payments.