Can I claim redundancy pay in Ireland?
Yes, once you have at least two years' service and the job is genuinely lost. You qualify for statutory redundancy after 104 weeks (2 years) of continuous service, where the role ends through a closure or a reduction in staff. The lump sum is 2 weeks' gross pay for each year of service, plus one additional bonus week's pay. Gross weekly pay is capped at €600 a week (€31,200 a year) for the calculation, even if you earn more, and statutory redundancy is completely tax-free. "Pay" means gross pay before tax and PRSI, including normal weekly pay and average regular overtime. If your employer won't pay, you can use form RP77, and if they can't pay or are insolvent you can claim from the Social Insurance Fund. In short: yes after two years, on the statutory formula.
📋 The rules
- Qualify after 2 years (104 weeks) continuous service
- 2 weeks' pay per year of service
- Plus 1 bonus week's pay
- Gross pay capped at €600/week (€31,200/year)
- Statutory redundancy is tax-free
🔓 Exceptions
- Refusing suitable alternative work without good reason can lose the payment
- Long sickness/lay-off in the last 3 years may be non-reckonable service
- A separate special payment may apply for some COVID-era lay-offs
⚠️ Penalties & fines
The calculation ceiling is €600 a week (€31,200 a year), and the formula is 2 weeks per year plus 1 bonus week. If the employer refuses, ask in writing and then use form RP77; if they can't pay or are insolvent, you can claim from the Social Insurance Fund. Disputes go to the WRC and must be lodged within 1 year of the dismissal. Statutory redundancy is tax-free, while any enhanced or ex-gratia top-up may be taxable subject to reliefs. Beware a myth: "my employer must give me an enhanced package" is false — they only owe statutory redundancy plus notice; top-ups are voluntary unless your contract, a collective agreement, or custom and practice creates a right. To claim: confirm your service and weekly pay, and use the RP77 / Social Insurance Fund route if your employer doesn't pay.
📎 Official sources
- Citizens Information — redundancy payments →
- gov.ie — redundancy payments scheme gross weekly wage →
- Redundancy Payments Act 2022 →
❓ Frequently asked
Am I entitled to statutory redundancy pay?
You qualify for statutory redundancy if you have at least two years — 104 weeks — of continuous service with your employer and you lose your job because of a workplace closure or a genuine reduction in the workforce. If you have under two years' service, you have no statutory redundancy entitlement, though you may still be owed notice.
How is redundancy pay calculated?
Statutory redundancy is two weeks' gross pay for each year of service, plus one extra bonus week's pay. Your gross weekly pay is capped at €600 a week — €31,200 a year — for the calculation, even if you earn more. Pay includes normal weekly earnings and average regular overtime, before tax and PRSI.
Is redundancy pay taxed?
Statutory redundancy is completely tax-free. If your employer pays an enhanced or ex-gratia amount on top of the statutory entitlement, that additional sum may be taxable, though tax reliefs can reduce or remove the liability depending on your service and earnings. The statutory portion itself is always free of tax.
What if my employer won't pay?
First ask in writing, then you can use form RP77 to formally request your redundancy payment. If the employer still won't pay, or is insolvent and can't, you can apply to have it paid from the Social Insurance Fund. Disputes can be brought to the Workplace Relations Commission, generally within one year of the dismissal.
Does my employer have to offer an enhanced package?
No. Employers are only legally required to pay statutory redundancy, plus any notice you're owed. Enhanced or ex-gratia packages are voluntary, unless a right to one is created by your contract of employment, a collective agreement, or a clear custom and practice in your workplace. Many employers offer top-ups, but they're not obliged to.
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