What statutory redundancy is
Statutory redundancy is a legal minimum payment you're entitled to if you're made redundant after 2 or more years of continuous service. It's not discretionary, your employer cannot refuse to pay it if you qualify.
The key word is "redundancy." Your role has to be genuinely redundant, the job is disappearing or the workplace is closing. Redundancy is not a mechanism for dismissal. If your employer is ending your employment because of your performance or conduct, that's dismissal, not redundancy. The distinction matters, because statutory redundancy pay only applies to genuine redundancy situations.
Statutory redundancy is the legal floor. Many employers pay enhanced redundancy above this, particularly in larger organisations or where it's negotiated in your contract or through a union. Always check your contract before accepting a redundancy offer.
2 years
Minimum continuous service
Required to qualify for statutory redundancy. Clock starts from your first day of employment.
€600/week
Weekly pay cap
Statutory redundancy is calculated on your actual weekly gross pay, capped at €600. Updated with each Budget.
Tax-free
Statutory lump sum
Statutory redundancy pay is fully exempt from income tax, PRSI, and USC — no exceptions.
Who qualifies
To qualify for statutory redundancy in Ireland, you must:
- Have worked for the same employer for at least 2 years of continuous service
- Be an employee (not a self-employed contractor)
- Be aged 16 or over
- Work in a role that is genuinely redundant
Part-time workers qualify on the same basis as full-time workers. The 2-year clock runs from your start date and doesn't need to be unbroken, but gaps of more than 26 weeks break continuity of service for most purposes. Parental leave and sick leave don't break continuity.
If your employer puts you on lay-off or short-time working for 4 or more consecutive weeks (or 6 weeks in any 13-week period), you may be entitled to claim redundancy even if your employer hasn't formally ended your employment. This is worth knowing if you're in that situation.
The formula — how statutory redundancy is calculated
The formula is straightforward:
2 weeks' pay × years of service + 1 bonus week
Your weekly pay for this calculation is your gross weekly pay, capped at €600. The cap was last updated in Budget 2005 and has not changed since, despite earnings rising significantly since then. Many employees will have their actual pay well above the cap, which means the statutory figure can feel low relative to real earnings.
Example: 10 years of service, actual weekly pay €900
- Weekly pay used in calculation: €600 (capped)
- Weeks: (10 × 2) + 1 = 21 weeks
- Statutory redundancy: €600 × 21 = €12,600
Use the calculator below to work out your own figure.
What your employer must do
When you're made redundant, your employer must:
- Give you the RP50 form (Redundancy Certificate) — this is your legal proof of redundancy and you'll need it for any future Jobseeker's Benefit or WRC complaint
- Pay your statutory redundancy as a lump sum, unless both parties agree to weekly payments (lump sum is standard)
- Give you proper notice before your employment ends
If your employer doesn't give you the RP50 or refuses to pay statutory redundancy, you have 52 weeks from the date of redundancy to make a complaint to the WRC. Keep copies of all correspondence.
Collective redundancy: If 20 or more employees are being made redundant within 30 days, different rules apply. Your employer must notify the Minister for Enterprise and consult with employee representatives. Individual redundancy rights still apply on top of the collective process.
Notice periods when you're made redundant
You're entitled to notice before your employment ends. The statutory minimum depends on how long you've worked there:
| Length of service | Minimum notice | |-------------------|---------------| | 13 weeks – 2 years | 1 week | | 2 – 5 years | 2 weeks | | 5 – 10 years | 4 weeks | | 10 – 15 years | 6 weeks | | 15+ years | 8 weeks |
Your contract may give you a longer notice period. If it does, that's the figure that applies. Your employer can pay you in lieu of working out the notice period, so you leave immediately but still receive the notice pay. Get any such agreement in writing.
Your options after redundancy
Jobseeker's Benefit If you've been paying PRSI (Class A), you're likely entitled to Jobseeker's Benefit. Apply at your local Intreo centre or online at gov.ie as soon as your employment ends, the first payment is from the fourth day of unemployment. Statutory redundancy pay doesn't affect your Jobseeker's Benefit entitlement. You'll need your RP50 as part of the claim.
Tax refund If you're made redundant partway through the tax year, you may be due a tax refund because your employer will have deducted income tax based on a full year's earnings. You can claim a refund through Revenue's myAccount — it's worth doing promptly. Statutory redundancy itself is tax-free, but regular salary paid up to the date of redundancy is taxable in the normal way.
Enhanced redundancy — negotiating above statutory Statutory redundancy is the floor, not the ceiling. Many employers offer more, particularly if you have long service or if the redundancy is part of a restructure. The enhanced payment covers anything above the statutory figure. The first €10,160 + €765 per complete year of service of any termination payment is also tax-free (this is the "basic exemption" and applies to the enhanced portion, not to statutory redundancy itself which is always fully tax-free). If you're being offered an enhanced package, consider getting advice from a solicitor or trade union representative before signing anything.
Right to appeal If you believe your redundancy was not genuine, or your employer hasn't paid the correct statutory amount, you can appeal to the Workplace Relations Commission (WRC) within 6 weeks of the date of redundancy. If the appeal is upheld, the WRC can order your employer to pay the correct amount.
"Voluntary redundancy" — still redundancy If your employer offers you voluntary redundancy and you accept, this is still treated as redundancy for statutory purposes. You retain all your statutory rights. The fact that you volunteered doesn't reduce your entitlement.
The €600 cap hasn't moved since 2005
The weekly pay cap for statutory redundancy has not been increased since 2005. Average earnings have risen significantly since then, which means the statutory calculation increasingly underestimates real economic loss. If your actual pay is above €600/week, your statutory entitlement is lower relative to your real income than it would have been for someone earning the same real salary 20 years ago. This is a policy gap worth knowing about when negotiating enhanced redundancy.
Where to get advice
We're building out the Parce employment rights section. In the meantime:
Citizens Information — citizensinformation.ie or freephone 0818 07 4000 Free, plain-language advice on redundancy rights, the RP50 form, WRC complaints, and Jobseeker's Benefit. First port of call for most people.
Workplace Relations Commission (WRC) — workplacerelations.ie or 0818 80 8090 For complaints about unpaid redundancy, unfair dismissal disguised as redundancy, or disputes about redundancy terms. Free to make a complaint. You have 6 weeks from the date of redundancy for most redundancy-related complaints.
FLAC (Free Legal Advice Centres) — flac.ie Free legal advice clinics if your situation is complex.
Redundancy calculator
Calculates your statutory minimum. Enter your weekly gross pay and your complete years of service.
Your actual gross — the calculator applies the €600 cap automatically
Whole years only. Minimum 2 to qualify for statutory redundancy.
Formula: 2 weeks' pay × years of service + 1 bonus week, capped at €600/week gross. Statutory redundancy only — your employer may offer more. Figures correct as of Budget 2025 (October 2024). The cap is reviewed annually — subscribe below to be notified of changes.
I'll send one email if the statutory redundancy rate or tax-free threshold changes — it updates with Budget each October.
Common questions about redundancy in Ireland
How much statutory redundancy am I entitled to in Ireland?▾
Statutory redundancy is calculated as 2 weeks' pay for every year of continuous service, plus 1 bonus week. Your weekly pay is your gross pay capped at €600. So if you've worked for 10 years at €600/week or above, your statutory entitlement is €600 × (20 + 1) = €12,600. Use the Parce redundancy calculator above to get your figure.
Do I have to pay tax on my redundancy payment?▾
Statutory redundancy pay is fully tax-free — no income tax, PRSI, or USC applies to it. If your employer pays you enhanced redundancy above the statutory amount, the first €10,160 + €765 per complete year of service of any termination payment is also tax-free (the "basic exemption"). Amounts above that threshold may be taxable. Your regular salary paid up to the date your employment ends is taxed in the normal way.
What is the RP50 form?▾
The RP50 is the Redundancy Certificate that your employer is legally required to give you when you're made redundant. It confirms the details of your redundancy, the calculation of your statutory entitlement, and the dates of your employment. You'll need it to claim Jobseeker's Benefit and for any WRC complaint. If your employer refuses to provide it, contact the WRC.
Can I claim redundancy if I've only worked somewhere for 18 months?▾
No. You must have at least 2 years of continuous service to qualify for statutory redundancy. If you have 18 months of service and your role is made redundant, you are not entitled to statutory redundancy pay. You may still be entitled to notice pay and any other contractual payments, but not the statutory redundancy lump sum.
What if my employer says they can't afford to pay my redundancy?▾
An employer's inability to pay does not remove your statutory entitlement. If your employer is insolvent, the Department of Social Protection's Insolvency Payments Scheme can pay statutory redundancy and certain other amounts owed to employees from the Social Insurance Fund. Contact the WRC or Citizens Information if this applies to you.
Is voluntary redundancy the same as statutory redundancy?▾
Yes, for statutory purposes. If your employer offers voluntary redundancy and you accept, you retain all your statutory rights. The fact that you volunteered for the scheme doesn't reduce your entitlement to the statutory minimum. You're still entitled to the RP50 form and the correct statutory calculation.
How long do I have to appeal a redundancy decision to the WRC?▾
You have 6 weeks from the date of redundancy (or date of dispute) to submit a complaint to the Workplace Relations Commission. In exceptional circumstances this can be extended, but don't rely on that. Submit promptly if you believe your redundancy was not genuine or the payment was incorrect.