Redundancy Calculator SCSB worked example

David1234

Registered User
Messages
264
Hi,

Family member is potentially going to be made redundant in the next year and was asking me about the figures.

Term with employer- 8 years
Average salary last 3 years- €140k
Potential lump sum including statutory- €85k
No company pension in place and no other lump sum
SCSB figure of €74,667, (140k*(8/15)

Is the statutory figure of €10,200 (17 weeks * €600) added to the €74,667 for the tax free amount leaving them to pay tax on €133 (€85,000 - €74,667 - €10,200)?

or is tax payable on the €10,333 (€85,000- €74,667)?

Cheers
David
 
Hi - Statutory redundancy is tax free. The SCSB figure mitigates the tax payable on the ex-gratia element of the redundancy payment. So using the figures above, tax would ultimately be payable on €133 not €10,333.
 
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