Why is statutory redundancy capped at 600 euro per week?

[Laughahalla]

It seems like this 600 euro cap for statutory redundancy has been in place for years now.
Where did this number come from and should it be linked to inflation ?

 

[NoRegretsCoyote]

It seems like this 600 euro cap for statutory redundancy has been in place for years now.

I think it dates from when employers were able to draw on the social insurance fund for redundancies, called the "redundancy rebate scheme". This was abolished over a decade ago but I presume government didn't want high earners' packages coming from this fund.

Where did this number come from and should it be linked to inflation ?

There is very little in Irish legislation that is formally linked to inflation. These things are usually adjusted on budget day.

 

[T McGibney]

There is very little in Irish legislation that is formally linked to inflation. These things are usually adjusted on budget day.

Or more exactly, not adjusted on budget day.

The Capital Gains Tax annual exemption has been €1,270 since we adopted the Euro and was £1,000 long before that.

 

[ashambles]

2005 seems it was the last increase from 400 pounds to 600 euro. It had previously been increased in 2001, so I assume up to then was adjusted at some reasonable frequency.

Thematic feature - redundancies and redundancy costs

In November 2003, the EIRO national centres in each EU Member State (plus Norway), were asked, in response to a questionnaire, to give a brief overview of: the

www.eurofound.europa.eu

 

[Jim Stafford]

I presume government didn't want high earners' packages coming from this fund.

I would agree with NoRegretsCoyote. Its value has been eroded through inflation over the years.

The fund is a very valuable safety net for employees if their employers go into liquidation.

Jim Stafford

 

[NoRegretsCoyote]

I would agree with NoRegretsCoyote. Its value has been eroded through inflation over the years.

€600k a week or €31k a year today puts you well outside the top tax bracket, and is nearly 40% below the average full-time income of about €50k these days.

It's another area where high earners pay a lot of PRSI but don't get the benefit back.

 

[Purple]

€600k a week or €31k a year today puts you well outside the top tax bracket, and is nearly 40% below the average full-time income of about €50k these days.

It's another area where high earners pay a lot of PRSI but don't get the benefit back.

The employer pays more and gets absolutely nothing back.

 

[azerty]

Most people aren't aware of this or don't feel it affects them so no pressure to change it...