Calculating a Redundancy payment
The amount of the Redundancy payment is determined by the employee's length of continuous service and weekly earnings. Weekly earnings include gross weekly wage, average regular overtime and benefits-in-kind. Currently, the maximum weekly amount for a statutory redundancy payment is €600.
If an employee is eligible for a Redundancy payment, they are entitled to:
- Two weeks pay for each year they have been employed and
- A bonus week's pay
If an employee has worked part of a year, they are entitled to two weeks multiplied by the part of the year
Example - Calculating a Redundancy Payment
A person has worked for an employer for 8 years and 200 days. Their statutory redundancy payment will be calculated as follows:
Two week's pay x 8 = 16
+ Two week's pay x 200 days (400 days) = 1.05
+ A Bonus week's pay =1
Total Statutory Entitlement 18.05 weeks
A Redundancy Calculator is provided by the Department of Jobs, Enterprise, and Employment. This allows employees to calculate how much statutory redundancy they are entitled to based on their circumstances.