Tax on redundancy pay

DerryRed

I've a quick question. There are rumours of upcoming redundancies where I work. I've found the following information about statutory redundancy

The statutory redundancy payment is a lump-sum payment based on the pay of the employee. All eligible employees are entitled to:

•Two weeks' pay for every year of service over the age of 16 and
•One further week's pay
The amount of statutory redundancy is subject to a maximum earnings limit of €600 per week (€31,200 per year).

Based on this I calculate that I'd be entitled to 21 weeks of redundancy payment. I earn €49,000 annually, therefore would I be looking at €19,788 approx (€49000/52*21) or would it be €12,600 (€600*21).

Any feedback would be really appreciated.

Shane732

Not really a taxation question but I'll leave it here for the moment.

There's a calculator on the social welfare website - https://www.welfare.ie/EN/Secure/Pages/RedundancyCalculator.aspx

Type your details in and it'll give you a figure.

cee_jay

DerryRed wrote: »

The amount of statutory redundancy is subject to a maximum earnings limit of €600 per week (€31,200 per year).

Based on this I calculate that I'd be entitled to 21 weeks of redundancy payment. I earn €49,000 annually, therefore would I be looking at €19,788 approx (€49000/52*21) or would it be €12,600 (€600*21).

Any feedback would be really appreciated.

The amount would be €12600. The amount is capped at €600 per week (statutory) so you won't get anything more than this if all you are being offered is statutory.

bryaner

DerryRed wrote: »

I've a quick question. There are rumours of upcoming redundancies where I work. I've found the following information about statutory redundancy

The statutory redundancy payment is a lump-sum payment based on the pay of the employee. All eligible employees are entitled to:

•Two weeks' pay for every year of service over the age of 16 and
•One further week's pay
The amount of statutory redundancy is subject to a maximum earnings limit of €600 per week (€31,200 per year).

Based on this I calculate that I'd be entitled to 21 weeks of redundancy payment. I earn €49,000 annually, therefore would I be looking at €19,788 approx (€49000/52*21) or would it be €12,600 (€600*21).

Any feedback would be really appreciated.

Statutory redundancy works out at max €1200 per year of service, well thats what I got..

allthedoyles

Assuming you have been working for 10 years now , without any breaks in service , you would receive Statutory of € 12,600 .

And your employer will receive a rebate of 15 % = € 1,900

As the above posters said , the ceiling is set at €600 , so your gross weekly wage in excess of this amount is irrelevant .

DerryRed

Thanks all. Would I be expected to pay any tax on this €12600?

magic roundabou

No that amount is tax free - unless you have received redundancy before - then i think its taxed but of the time limit i am not sure

gerrybbadd

Statutory Redundancy isn't taxable at all. It's only ex gratia payments that may be liable