Estimate your statutory redundancy, the tax-free part of any extra payment, and the tax on the rest.
Free calculator · Budget 2027 rates · checked 10 Oct 2026 · Sources: Revenue, Revenue · Estimate only, not financial or tax advice
Based on published Irish tax bands; not advice. Estimate based on published Revenue and DSP rates for the selected year. Covers employees, sole traders and common credits. Estimate only, not financial or tax advice. Check complex cases with Revenue.
Your average yearly pay over the last 3 years is used for SCSB.
Leave empty to work it out from the annual salary.
Everything your employer pays as redundancy, including statutory redundancy. Leave out notice pay and holiday pay.
If it does, notice pay is taxed as normal pay. If not, it is added to the lump sum and can use the exemptions.
Counts against the €200,000 lifetime limit. Leave at 0 if none.
Statutory redundancy is fully tax-free. On top of that, part of any extra payment from your employer can be tax-free too. The tax-free amount is the highest of three options: the basic exemption, the increased exemption, or SCSB. There is a lifetime cap of €200,000.
Statutory redundancy is the legal minimum. You get it after 2 years (104 weeks) in the job.
Many employers pay more than the statutory amount. This extra is called an "ex-gratia" payment (a voluntary payment on top of what the law requires). Part of it can be tax-free. You get whichever of these three gives the biggest number.
1. Basic exemption
€10,160, plus €765 for each full year you worked for that employer.
Example from Revenue: 20 full years gives €10,160 + (€765 × 20) = €25,460 tax-free.
Part-time and job-share years count as full years. A career break does not count.
2. Increased exemption
Up to €10,000 more on top of the basic exemption. You can get it if:
If your work pension will pay you a tax-free lump sum, that lump sum is taken off the €10,000. If the pension lump sum is more than €10,000, you get no increase. You can only get the increased exemption once in any 10-year period.
3. SCSB (Standard Capital Superannuation Benefit)
SCSB is a formula that tends to help people with high pay and long service.
Example from Revenue: 18 years' service, €95,000 total pay over the last 3 years, and an €11,000 pension lump sum. SCSB = €27,000. That beats her basic exemption of €23,930, so €27,000 of her €60,000 payment is tax-free and €33,000 is taxed.
There is a lifetime cap of €200,000 on the basic exemption, the increased exemption and SCSB added together. It counts relief you got on earlier redundancy payments too, from any employer.
If too much tax was taken, you can claim the exemption through myEnquiries in Revenue myAccount. You also need to declare the lump sum on your tax return for that year.
Our calculator above gives an estimate. Your employer's payroll and Revenue make the final figure.
Is statutory redundancy taxed in Ireland?
No. Statutory redundancy is free of income tax, USC and PRSI.
Can I get the basic exemption more than once?
Yes, if the payments come from different employers that are not connected, and you stay under the €200,000 lifetime cap.
Does my pension lump sum reduce my tax-free redundancy?
It can. A tax-free pension lump sum is taken off the increased exemption and off SCSB. It does not reduce the basic exemption.
Is pay in lieu of notice tax-free?
Not if your contract provides for it. Then it is taxed as normal pay.
Based on published Irish tax bands; not advice. Estimate based on published Revenue and DSP rates for the selected year. Covers employees, sole traders and common credits. Estimate only, not financial or tax advice. Check complex cases with Revenue.
No. Statutory redundancy is tax-free. It is 2 weeks' pay for each year of service plus 1 week, with pay capped at €600 a week, and you need at least 2 years' service.
The highest of: the basic exemption (€10,160 plus €765 for each complete year of service), the increased exemption (up to €10,000 more, less any tax-free pension lump sum), or SCSB. There is a €200,000 lifetime limit.
No. The taxable part of an ex-gratia lump sum has income tax and USC but no PRSI. Pay in lieu of notice that is in your contract is taxed as normal pay, with PRSI.
No. Top slicing relief was abolished for ex-gratia payments made on or after 1 January 2014.
Check your take-home pay with Budget 2027. Also: the Take-home pay calculator for your regular salary, and Second income: do I need a Form 12? if you start other work after redundancy.