Skip to main content

FAQs

Frequently Asked Questions

Common questions about redundancy and termination payment tax in Ireland

(2 weeks per year + 1 bonus week) × weekly pay (capped €600). Min 2 years. Always 100% tax-free.

Basic (€10,160 + €765/year), Increased (Basic + €10,000 - pension), SCSB (avg pay × years ÷ 15 - pension). You get the highest.

No. Only Income Tax and USC apply to the taxable portion of qualifying termination lump sums under Section 123 TCA 1997.

Lifetime limit on tax-free ex-gratia amounts across all jobs. Statutory redundancy does NOT count towards this cap.

Our calculator compares keep vs waive scenarios and shows which leaves you better off overall. Usually keeping is better.

Yes, abolished 1 January 2014 (Finance Act 2013). Our calculator correctly excludes it.

Statutory redundancy, ex-gratia/severance, non-contractual PILON. NOT contractual PILON, holiday pay, salary arrears, or earned bonuses.

No statutory entitlement, but ex-gratia payments can still benefit from the Basic, Increased, and SCSB exemptions.