# Statutory Redundancy



## Cavanbhoy (23 Mar 2021)

In a statutory redundancy situation if gross wages of 500e plus an employer pension contribution of 20e. 
Would the statutory payment be based on 500e or 520e
Thanks


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## Feemar5 (24 Mar 2021)

Usually based on gross pay which in your case appears to be 500 - regular overtime and benefits in kind such as health insurance can be included.


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## Cavanbhoy (24 Mar 2021)

Feemar5 said:


> Usually based on gross pay which in your case appears to be 500 - regular overtime and benefits in kind such as health insurance can be included.


Thanks for response so employer pension contributions are excluded so.


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## fayf (25 Mar 2021)

For simplicity, statutory redundancy is based on your weekly gross pay, or, €600, which ever is the lower amount. So its capped at €600 per week.

All other amounts such as BIK, Pension, Mileage, Lunch/Meals, Expenses, Bonusses, Commission are excluded.


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## RedOnion (25 Mar 2021)

fayf said:


> All other amounts such as BIK, Pension, Mileage, Lunch/Meals, Expenses, Bonusses, Commission are excluded.


BIK, bonuses & commission ARE included in the calculation of normal pay.

Here's the legislation if you're interested: 

16. (i) In the case of an employee who is paid wholly or partly by piece rates, bonuses or commissions (being piecerates, bonuses or commissions related directly to his output) and in the case of any other employee whose remuneration varies in relation to the amount of work done by him, his normal weekly remuneration shall be taken to be the amount as calculated in accordance with subparagraph (ii).

(ii) For the purposes of subparagraph (i) normal weekly remuneration shall be calculated by dividing the remuneration to be taken into account in accordance with subparagraph (iii) by the number of hours ascertained in accordance with subparagraph (vi) and multiplying the resulting hourly rate by the normal weekly working hours of the employee concerned at the date on which he was declared redundant.

(iii) The remuneration to be taken into account for the purposes of subparagraph (ii) shall be the total remuneration paid to the employee concerned for all the hours worked in the period of 26 weeks which ended 13 weeks before the date on which the employee was declared redundant, adjusted in respect of any variations in the rates of pay which became operative during the period of 13 weeks ending on the date on which the employee was declared redundant.


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## fayf (25 Mar 2021)

Very interesting insight


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