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Redundancy represents a significant financial turning point, particularly when payments are substantial and the decisions involved are complex.

For many professionals redundancy is not just the end of a role. It is a critical financial moment.

How your redundancy is structured, how much is tax-free, and how it affects your pension and long-term plans can materially affect your financial future.

At Fairstone Ireland, we help you understand your redundancy payments clearly and make informed, confident decisions.

We Understand What You’re Facing

We Understand What You’re Facing

If you have recently been made redundant, you may be asking:

  • How much statutory redundancy am I entitled to?
  • How are redundancy payments taxed in Ireland?
  • How much of my redundancy is tax-free?
  • Should I invest, protect, or restructure the payment?
  • How does redundancy affect my pension and retirement plans?
We Understand What You’re Facing
These are important financial decisions. Getting the right advice can make a significant difference to your long-term financial position.

We work with professionals, senior executives, and long-serving employees across Ireland to help them navigate redundancy with clarity and confidence.

Understanding Your Redundancy Is the First Step

In Ireland, statutory redundancy is calculated as:

Two weeks’ pay per year of service, plus one additional week, with weekly pay capped at €600.

However, many redundancy packages, particularly for higher earners, include enhanced or additional payments beyond statutory redundancy.

These redundancy payments may qualify for valuable tax reliefs, but incorrect structuring can result in unnecessary tax.

Understanding your options before accepting your package is essential.

Download our Redundancy Guide
Understanding Your Redundancy Is the First Step

How Fairstone Ireland Can Help

Our expert financial advisors provide structured guidance tailored to your individual circumstances. We help you:
Understand how much statutory redundancy you are entitled to

Understand how much statutory redundancy you are entitled to

Maximise tax efficiency on redundancy payments

Maximise tax efficiency on redundancy payments

Protect and preserve your wealth

Protect and preserve your wealth

Structure your redundancy package before acceptance to optimise outcomes

Structure your redundancy package before acceptance to optimise outcomes

Assess pension and retirement implications

Assess pension and retirement implications

Create a clear financial plan for your next stage

Create a clear financial plan for your next stage

LET'S TALK

Download Our Redundancy Guide

Download Our Redundancy Guide

Our guide explains, in clear terms:

  • How redundancy is calculated in Ireland
  • How redundancy payments are taxed
  • How to maximise tax-free entitlements
  • What high earners need to consider
Download our Redundancy Guide

Read More About Redundancy in Ireland

Read More About Redundancy in Ireland

For a detailed explanation of redundancy entitlements, tax treatment, and financial planning considerations, you can read our full article.

Read article

Frequently Asked Questions

How much statutory redundancy am I entitled to in Ireland?

Statutory redundancy in Ireland is calculated as two weeks’ pay per year of service, plus one additional week’s pay. Weekly earnings are capped at €600 for statutory redundancy purposes. This means the maximum statutory redundancy payment depends on your years of service, but the statutory portion is exempt from income tax under current Revenue rules.

If your earnings exceed the cap, you may also receive additional redundancy payments as part of an enhanced package.

Are redundancy payments taxable in Ireland?

Statutory redundancy payments are fully tax-free.

Additional redundancy payments, such as ex-gratia or enhanced payments, may also qualify for tax-free relief under Revenue provisions, including Basic Exemption, Increased Basic Exemption, and Standard Capital Superannuation Benefit (SCSB).

Eligibility for these reliefs depends on your individual circumstances, including years of service and prior lump sums received.

Understanding how these reliefs apply can significantly affect how much of your redundancy you retain.

How is statutory redundancy calculated in Ireland?

Statutory redundancy is calculated using this formula:

Two weeks’ pay per year of service plus one additional week’s pay

Weekly pay is capped at €600 for statutory redundancy calculations.

However, many professionals receive enhanced redundancy payments beyond this statutory amount. These additional payments require careful financial planning to ensure tax efficiency.

What is included in a redundancy package?

A redundancy package in Ireland may include:

  • Statutory redundancy payment
  • Enhanced or ex-gratia payments
  • Notice period payments
  • Accrued holiday pay
  • Bonus or incentive payments

Each component may be taxed differently, making it important to understand the structure of your package before accepting it.

Should I take financial guidance before accepting redundancy?

Yes. Redundancy can have important tax, pension, and long-term financial implications.

Professional guidance can help you:

  • Maximise tax-free redundancy payments
  • Avoid unnecessary tax
  • Protect your pension entitlements
  • Make informed decisions about your financial future

Many individuals only have one opportunity to structure their redundancy efficiently.

How does redundancy affect my pension?

Your redundancy may affect your pension options, tax-free lump sum entitlement, and retirement timeline.

In some cases, decisions made during redundancy can reduce future pension benefits or tax efficiency. Understanding these implications helps you make informed, long-term financial decisions.

Fairstone advisors can help you review your pension and redundancy together as part of a structured financial plan.

Speak to a redundancy advisor today

Redundancy is a financial transition point. The decisions you make now can affect your financial security for years to come. Fairstone Ireland provides confidential, regulated financial advice to help you make informed, tax-efficient decisions.

LET'S TALK

Download a copy of our brochure to find out about Redudancy

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