Redundancy Calculation Examples
- Published on: 9 June 2021
- Last updated on: 15 April 2025
- Example 1: Redundancy Payments Scheme calculation
- Example 2: Employment prior to the age of 16 years
- Example 3: Gross weekly wage capped at €600
- Example 4: Inclusion of reckonable service where there was an absence from work
- Example 5: Non reckonable service excluded from calculation
Example 1: Redundancy Payments Scheme calculation
Joe is 44 years old. He commenced work with his employer on 27/01/1998 and was made redundant on 01/03/2021. Joe had no breaks in service during this period with his employer. Joe’s gross weekly wage was €600.
| Number of years’ service: | 23.11 (23 years and 40 days) |
| Weeks due under the scheme: | 47.22 (2 weeks per year plus 1 bonus week) |
| Wage ceiling under Scheme: | €600 per week |
| Statutory redundancy entitlement: | 47.22 x €600 = €28332.00 |
| Joe will receive €28,332 under this Scheme. | |
Example 2: Employment prior to the age of 16 years
John was born on the 14/08/1999 and commenced work with his employer on the 14/08/2013 aged 14 years. John was made redundant on the 29/11/21 and his gross weekly wage was €450.
John’s period of employment between 14/08/2013 and 13/08/2015, when he was under the age of 16 years, is not included in the redundancy calculation under this scheme.
| Number of years’ service: | 6.3 (6 years and 110 days) |
| Weeks due under the scheme: | 13.6 (2 weeks per year plus 1 bonus week) |
| Wage ceiling under Scheme: | €450 per week |
| Statutory redundancy entitlement: | 13.6 x €450 = €6120.00 |
| John will receive €6,120.00 under this Scheme. | |
Service under the age of 16 is excluded.
Example 3: Gross weekly wage capped at €600
June commenced employment on 29/01/2001, was given notice of termination by her employer on the 15/01/2021 and was made redundant on the 29/01/2021. June’s gross weekly wage was €761.92. Under this scheme June’s gross weekly wage is capped at €600.
| Number of years’ service: | 20.02 (20 years and 6 days) |
| Weeks due under the scheme: | 41.04 (2 weeks per year plus 1 bonus week) |
| Wage ceiling under Scheme: | €600 per week (maximum allowed) |
| Statutory redundancy entitlement: | 41.04 x €600 = €24624.00 |
| June will receive €24,624.00 under this Scheme. | |
Wage was capped at €600 per week.
Example 4: Inclusion of reckonable service where there was an absence from work
Vanessa commenced work on the 09/12/2004, was given notice of termination by her employer on the 15/01/2021 and was made redundant on the 29/01/2021. Vanessa’s gross weekly wage was €446.69. Vanessa had an absence due to maternity leave from 22/07/2018 to 19/01/2019 (182 days).
| Number of years’ service (including absence): | 16.15 (16 years and 56 days) |
| Weeks due under the scheme: | 33.3 (2 weeks per year plus 1 bonus week) |
| Wage ceiling under Scheme: | €446.69 per week |
| Statutory redundancy entitlement: | 33.3 x €446.69 = €14,874.78 |
| Vanessa will receive €14,874.78 under this Scheme. | |
Many absences are included in the calculation of reckonable service. In this case the absence for maternity leave (calculated at 182 days duration) does not affect the redundancy calculation under this scheme.
Example 5: Non reckonable service excluded from calculation
Vanessa commenced work on the 09/12/2004, was given notice of termination by her employer on the 15/01/2021 and was made redundant on the 29/01/2021. Vanessa’s gross weekly wage was €446.69. Vanessa had an absence due to lay off from 22/07/2018 to 19/01/2019 (182 days).
| Number of years’ service (excluding non reckonable service): | 15.65 (15 years and 239 days) |
| Weeks due under the scheme: | 32.3 (2 weeks per year plus 1 bonus week) |
| Wage ceiling under Scheme: | €446.69 per week |
| Statutory redundancy entitlement: | 32.3 x €446.69 = €14428.09 |
| Vanessa will receive €14,428.09 under this Scheme. | |
Vanessa’s absence is due to lay off (calculated at 182 days duration). This absence due to Lay Off is a non reckonable service and is excluded from the redundancy calculation under this scheme. A difference of €446.75 applies between example 4 and example 5 even though the start and end date was the same.
Some absences are excluded if they occurred in last 3 years of employment
- Lay off by the employer
- Strike
- Absence of more than 52 weeks due to occupational accident or disease
- Absence of more than 26 consecutive weeks due to other illness