Redundancy questions, answered

Statutory redundancy is 2 weeks' gross pay per year of service plus one bonus week, with weekly pay capped at €600. Your employer may add an ex-gratia amount on top. The calculator gives you a personalised figure in seconds.

Statutory redundancy is completely tax-free. Only the ex-gratia amount above your best relief (Basic Exemption, Increased Exemption or SCSB) is taxed, with income tax + USC, but never PRSI. See the tax page for worked examples.

Not automatically, and this is one of the most common mix-ups. In the UK the first £30,000 of a redundancy payment is tax-free, and that rule often gets repeated in Ireland as if it applied here. Ireland has no "first redundancy is tax-free" rule. What Ireland has instead:

• Your statutory redundancy is always tax-free, whether it's your first redundancy or your fifth.
• The ex-gratia part is tax-free up to your best relief (Basic Exemption, Increased Exemption or SCSB). If your ex-gratia fits inside the relief, you pay no tax at all. Only the slice above it is taxed.
• The only "once in a while" rule is the extra €10,000 Increased Exemption, which Revenue grants once in any 10-year period. That's €10,000, not your whole payment.

So a first redundancy can end up 100% tax-free, but only when the ex-gratia is small enough to sit inside the exemption, not because it's the first. Check your own numbers in the calculator.

Yes, you generally need at least 104 weeks (2 years) of continuous insurable service to be entitled to statutory redundancy. Your employer can still choose to pay an ex-gratia amount even if you don't qualify for statutory.

For statutory redundancy, your gross weekly pay is capped at €600, even if you earn more. So each full year of service is worth at most €1,200 (2 × €600) for statutory purposes, plus the one bonus week. Your employer's ex-gratia payment is not subject to this cap.

It's a Latin term meaning "as a favour". It's the extra, discretionary payment your employer offers on top of statutory redundancy, usually expressed as a number of weeks' pay per year of service, and often negotiated during the consultation period.

Minimum notice ranges from 1 week (under 2 years' service) up to 8 weeks (15+ years). Your contract may give you more. The full table is on the guide page.

Usually yes. If you have enough PRSI contributions, your redundancy lump sum doesn't stop you claiming Jobseeker's Benefit once you're unemployed. Apply through the Department of Social Protection (MyWelfare).

If your employer refuses or is insolvent, you can apply to have your statutory redundancy paid from the Social Insurance Fund. Bring any claim within 52 weeks of dismissal. Disputes go to the Workplace Relations Commission. More detail on the guide page.

Compulsory means the employer selects who goes. Voluntary means they ask for people to put themselves forward, often with a better package to encourage it. In both cases the statutory minimum and the tax rules are the same, the difference is usually the size of the ex-gratia and whether you choose to leave.

You're entitled to your statutory redundancy no matter what. For any ex-gratia top-up, you can ask questions and negotiate during the consultation before agreeing. If you're asked to sign a waiver of your legal rights, it's worth getting advice first, take your time and don't feel rushed. See how the consultation works.

A genuine redundancy can happen while you're on leave, but you have extra protection, you can't be selected because you're on maternity, parental or sick leave. If you feel your leave was the real reason, that may be unfair dismissal. Get advice from Citizens Information or the WRC.

Redundancy is usually paid on or around your last day, along with any pay and unused holidays you're owed. If there's a delay, ask HR in writing. If the company can't pay, the State scheme can step in (see the guide).

PRSI (Pay Related Social Insurance) is the social-insurance contribution normally taken from wages. By law it is not charged on redundancy or termination lump sums, so it never reduces your redundancy payment.

Your lump sum is your money to use. It doesn't stop Jobseeker's Benefit (which is based on PRSI, not savings). It can affect means-tested payments like Jobseeker's Allowance if it pushes your savings up. If money is tight, MABS gives free budgeting advice, see mabs.ie.

There's no legal amount: the ex-gratia is entirely up to the company, so offers range from statutory only to several weeks' pay per year of service on top. What a company pays usually depends on its finances, what it paid in previous rounds (always ask) and how the negotiation goes. The consultation page explains how to compare and negotiate the offer.

If you have a work pension, you keep what you've built up. With 2+ years in the scheme you can leave it there, or transfer it to a new employer, a PRSA or a Buy-Out Bond; under 2 years you may get a refund of your own contributions. The rules are the same for everyone, big company or small. A tax-free pension lump sum can also affect your SCSB tax relief. Full detail on the guide page.