Individuals leaving employment may receive the following tax-free amounts:

·        € 10,160 plus € 765 for each complete year of service with the employer.

·        Additional amounts of € 10,000 and an amount known as the SCSB based on years of service, salary levels, etc.  However, care needs to be taken as it may have implications for taking tax free pension lump sums on retirement.

·        Any statutory redundancy payment.

Individuals can also claim ‘Top Slicing Relief’ which seeks to limit the tax rate to the average rate over the previous 5 years.

In addition, individuals should also note that following redundancy, subject to the same conditions, they may be able to avail of social welfare assistance, which is not means tested for a period.

Advice should be sought from a professional tax advisor prior to any redundancy transaction being completed.