Redundancy Queries

S

Sangster

Registered User
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I was wondering if anyone could help me out here. I may be about to get an offer of redundancy for about £70k. I have no idea how to work out how much I will get after tax. Can someone explain how I work it out.

Thanks
 
Redundancy is usually based on a number of weeks salary per year of employment, therefore if you worked for a company for 10 years and they were paying 4 weeks per year of employment you would get 40 years salary. There may also be an additional lump sum payment given as well

Are your employers not giving you a breakdown of it?
 
In Ireland you would get the following amount tax free on a redundancy payement:

Statutory Redundancy ( calculated as 2 weeks for each year of service plus one week x your weekly salary capped at €600p.w.)

Plus greater of:

Basic Exemption €10,160 plus €765 for each year of service

Increased Exemption : Basic Exemption plus €10,000 less present value of tax free cash amount from pension scheme

SCSB: 1/15th for each year of service x 12 month average of last 36 month gross earnings less present value of tax free amount from pension scheme.

There are other tax issues, so advisable to seek advice.
 
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