Redundancy

S

Shaz

Guest
I work for a certain very large company who rumour has it are about to announce a pile of redundancies. If this is correct I'll get at least six weeks pay per year of service. I've been there 5.5 years. My current salary is approx €40K. What are the tax implications of this. Is the redundancy tax free?


Thanks
 
I'll get at least six weeks pay per year of service. I've been there 5.5 years. My current salary is approx €40K.
Lucky you! Been thru the redundancy myself this year, and the gift of money is great. It looks like you'll clear approx €25k (not including statituary, holiday pay, payment in lieu of notice (normally 1 month), etc).

What are the tax implications of this. Is the redundancy tax free?
No, here's an example, but use Clubman's links for exact details: if this is your first time claiming redundancy in the last 10 years, the first €10.5k (approx) is tax free, but the remainder is subject to tax at your marginal rate.
Statituary is tax free, whereas the other payments are not. This is a simplified answer to your q, but all redundancy tax matters should be explained to you in time.
 
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