How is Severance pay taxed?

  • Modified on: Fri, 10 Nov, 2023 at 11:53 AM

Severance or redundancy payments are untaxed and must be paid when employees are terminated without just cause or made redundant. 

The minimum entitlement shall be equivalent to:

- one week's wages per year for the first five years

- two weeks per year for the second five years

- three weeks for each year after the tenth year up to a maximum of fifty-two weeks.

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