# How much redundancy will i get



## ludermor (28 Apr 2010)

We are about to be offered voluntary redundancy and i am trying to work out what i will get after tax. 
We are going to be offered 4 weeks per year ( which i assume to be gross?) so 4 weeks gross amounts to 5,384.
I started employment in Jan 03 so i am into my eight year ( 7 full years).  Do i get 7 or 8 years? ( x 7 = 37,688, x 8 = 43,072)
From the citizens info site i see there is a basic excemption for the first 10,160 and then 765 for each year so i would have 10,160 + (765*8) = 16,280 tax free
It then states there is Increased Excemption of 10,000 in the following circumstances 
If you haven't received a tax-free lump sum in the last 10 years 
If you have never received a tax-free lump sum and you are not getting a lump sum pension payment 
So can i take it that this will be added to my tax free amount giving me 26,280??
So say i am entitled to 8 years this would give me tax free of 26,280 and taxed amount of (43,072-26280)= 16,792  which would be taxed at an average of the last 3 years ( say  35%?? without looking at my P60 i would say it is near that) so tax paid of 16,792x35=5877.20
So total payment would be 43,072-5,877.20= 37,194

Can someone tell if i have read it right or wrong


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## Plek Trum (28 Apr 2010)

Have a look on the redundancy calculator on www.redundancy.ie 
Should caluculate it easily and accurately for you there and you can print a copy (.pdf file)


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## Mpsox (28 Apr 2010)

In relation to the 7 or 8 years, that is dependent on the terms of the scheme since it is outside the statutory redundancy scheme. In the case of my own employer, in such a situation we would have paid the last year pro-rata depending on how much of it you worked. In other words, if you worked for 7 years 6 months, you would get 7*4 =28 weeks + 2 weeks for the 6 months worked, but some companies may do it differently

secondly you should check to see if the 4 weeks includes or excludes statutory redundancy. 

Thirdly you should check that there is no cap as to the maximum amount you can receive under your employers schemee


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## ludermor (28 Apr 2010)

Thanks for the quick replies!!
We havent been given the terms just yet so until then i will be a bit in the dark.
There will be a cap of 13 years ( so 52 weeks) so i will be under that. 
Im not sure about the statutory but the word is it excludes it. 
The main thing in my calculation i was wondering about is the entitlment of the second 10,000 increased excemption, is there any reason why i wouldnt be entitled to it?

Plek
The redundancy website only calculates the statutory redundancy unless i am missing something?


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