Excel calculator for Redundancy in Ireland

charleymax

Hi all,

My company have just requested a number of voluntary redundancies and I realised after an extensive internet search that there was no one easily downloadable Excel calculator for working out redundancy in Ireland.

So basically I did up my own taking into account al the Statutory and enhanced options as well as BE/IE and SCSB tax calculation methods from across the welfare, revenue and citizen information websites.

I realise that there are some of you that are unfortunately not getting any enhance and in some cases being told to claim from the government and I sympathise.

I do apologise if this is the wrong section or if it’s repeated (if it is I've not been able to find one!).

Hope this is a helpful resource... 44kb in xls format :pac:

Charleymax

DULLAHAN2

Thanks for that Charlie company i work for looking for redundancys. So if i calculated right there is a good chance i will be taking it.

charleymax

Thanks DULLAHAN2,

Problem with my offering is that although generous they only gave us 10 days to commit. Not enough time to look into setting up a business or going to work for family/friends. :-(

Will just sit it out and see what happens after the cut off date for voluntary....

Charleymax.

Dr Bolouswki

this is an excellent spreadsheet thanks

is this for specifically voluntary redundancy, or involuntary? I'm not sure from the wording in the OP, but I'm guessing it's involuntary redundancy?

Thanks for clarifying if you can, and thanks a million for the spreadsheet!

charleymax

Dr Bolouswki wrote: »

this is an excellent spreadsheet thanks

is this for specifically voluntary redundancy, or involuntary? I'm not sure from the wording in the OP, but I'm guessing it's involuntary redundancy?

Thanks for clarifying if you can, and thanks a million for the spreadsheet!

Thanks Dr Bolouswki,

I don't think it matters for this calculation whether it is voluntary or compulsory.
What this affects is notice pay. If you take voluntary they pay you per this calculation & don't have to give you notice. Basically they can make it effective that day. Whereas compulsory they must continue to pay you for your notice period. (Generally if you've been there a long time the notice pay is a small fraction of the overall package & voluntary is usually slightly more generous to entice volunteers anyway.)

Also note:
There is no disqualification from Jobseekers payments for taking voluntary redundancy, unless the payment is in excess of 50,000

Dmaurice

Hi there, I notice on http://www.redundancy.ie/employee/voluntarysevere.html that it says for voluntary seperation ' Tax:
Unlike redundancy payments, voluntary severance payments are not tax-free payments and are subject to normal tax assessment.'

Would that not imply that the excel file is incorrect for voluntary severance? From the redundancy.ie site it implies that you would pay tax on the whole amount - It does seem to be a grey area so any light you can shed would be much appreciated!

tatli_lokma

When I was made redundant it was technically voluntary as we could opt for the package on offer or wait and have compulsory redundancies kick in. The voluntary package was more generous. But only the extra-gratia portion (i.e the portion in addition to the statutory amount)was taxed.

Mc Love

Great spreadsheet - couldnt get my head around the numbers!

charleymax

Thanks McLove,

Good to know this continues to be useful.


Just noticing the post from Dmaurice now... I think voluntary redundancy and voluntary severance are two very different things.

The way it worked when it happened at my company was that they publically announced 25 redundancies (10% reduction in every department). They then have to seek volunteers for those redundancies before making them compolsary.

A redundancy exists when a position is being let go (so total headcount is lower) and tax free statutory redundancy applies. Voluntary severance I believe is where the person is being asked to go or leaving by choice but it is mutually agreed and the position will still exist. This is taxable and there's no entitlement to jobseekers as its someone leaving a job that technically still exists. (apologies if I'm wrong and please correct me if so)

Burgman

I came across this just now and had a look at the spreadsheet.

There are several errors, not hugely significant, so don't get into an argument with anyone if you are claiming that their calculations are incorrect!

I will have a look at it later and suggest repairs if I get a chance.

Mc Love

managed to work it out myself as the figures didnt appear to match up with what i was getting.

Burgman

There are a couple of important distinctions about this stuff.

If a company tries to get people to leave, there may or may not be a "redundancy" situation. Redundancy is a specific term that applies when a position is disappearing. A redundancy payment is calculated using the criteria that are shown at https://www.welfare.ie/en/Pages/secure/redundancycalculator.aspx

Known as statutory redundancy. Completely tax-free. People who are losing their jobs because of "downsizing" etc will usually qualify for this. People who are being dismissed for fraud, misbehaviour or, sometimes, incompetence would not normally qualify for statutory redundancy.

If an employer decides to pay more than the statutory minimum, that is regarded for tax purposes as a "termination payment". Such a payment can be made to anyone leaving employment for any reason - not just redundancy but also retirement, dismissal or just because an employee wants to leave; often referred to as "ex-gratia" or "golden handshake" payments. Termination payments are taxable as Dmaurice has pointed out is stated on www.redundancy.ie - but what has not been made clear is that there are very good exemptions from tax, even after these exemptions have been reduced in recent years.

For example, everyone leaving a job, for any reason, is entitled to exemption from tax on a payment of up to €10,160 plus €765 for every completed year of service. There are other possible adjustments that are shown in the spreadsheet that I have tweaked a bit today. I have fixed some formulas, incorrect amounts, included USC etc. There is still a flaw in relation to the basic exemption and the increased exemption where the pension lump sum figure is more than €10,000 but if you have amounts like that, you might need to seek more detailed specialist advice.

It's far from perfect but it will give you a reasonable idea. Basically, if you end up paying tax on a lump sum, you will end up paying much less tax than you would if you got the same amount of gross pay while working. The downside, of course, is the loss of income if that is the case but if you have got a golden handshake when moving to a new job, that can work out nicely.

ChewyLuey

Hey Burgman, Can you check the upload ? It doesn't seem to render as an excel sheet. Thanks.

Burgman

Not sure what happened there.

jethrothe2nd

I'm possibly missing something here, but if I put in my service start date, in my case 01/05/99, it calculates that as 13 years continuous service. Should it not be 16? Just wondering if there is something wrong in the formula, or if it is taking something else into account

Suaimhneach

This has been really helpful. I am am trying to help a friend who is being offered a lump sum, and not calculated in # of weeks. I divided the total by weekly average, but that seems to completely screw the calculations. Any advice?

ibarelycare

Suaimhneach wrote: »

This has been really helpful. I am am trying to help a friend who is being offered a lump sum, and not calculated in # of weeks. I divided the total by weekly average, but that seems to completely screw the calculations. Any advice?

What exactly are you trying to figure out?

wendellgee

does anyone have an up to date copy of this ?

ArcticFox

Same, I'd love a copy of this excel calculator please if anyone still has it handy. Thanks!