Lump sum payments
Other tax-exempt termination payments
If you have been made redundant, you may qualify for a lump sum payment under the Redundancy Payments Act 1967. This payment is exempt from Income Tax and Universal Social Charge (USC). For further information on your entitlements, please see the redundancy calculator on the MyWelfare website.
Covid-19 Related Lay-off Payments (CRLPs)
If you were laid-off by your employer due to the COVID-19 public health restrictions, you may be entitled to a CRLP. Your employer should apply to the Department of Social Protection for this payment on your behalf. The CRLP is exempt from Income Tax and USC.
Exemption for retraining on redundancy
If your employer pays the cost of retraining you as part of a redundancy package, this cost will be exempt from Income Tax provided that:
- you have more than two years continuous service with your employer
- the retraining is part of a redundancy package
- the retraining is designed to improve your skills or knowledge to help obtain employment or set up a business
- the retraining is completed within six months of the redundancy
- the cost does not exceed €5,000.
Payments made due to death, injury or disability
You may receive a compensation payment if a workplace accident:
- causes you injury which prevents you from continuing to work for your employer
- causes your death.
Any payments made in these circumstances may be exempt from Income Tax and USC up to a lifetime limit of €200,000.
COVID-19 Death in Service Scheme for Healthcare Workers
The COVID-19 Death in Service Scheme for Healthcare Workers payment is exempt from both Income Tax and Capitals Acquisitions Tax.