Universal Social Charge (USC)
Statutory redundancy payments are exempt from USC. These payments:
- amount to two full weeks of pay per year of service plus a bonus week
- are subject to a maximum of €600 per week.
Ex-gratia redundancy payments above the statutory redundancy amount are exempt from USC up to certain limits. The limits are €10,160 plus €765 per full year of service in excess of statutory redundancy. This basic exemption can be further increased by up to €10,000 – see Further guidance for more information.
There is a lifetime exemption limit of €200,000 on ex-gratia payments.
USC is payable on any redundancy payments above these limits, after any extra deduction for Standard Capital Superannuation Benefit (SCSB).