Statutory redundancy (2 weeks a year + 1, pay capped at €600 a week) is tax-free. The rest is tax-free up to the highest of the basic exemption (€10,160 + €765 a year), the increased exemption (+€10,000 less any pension lump sum) and SCSB, capped at €200,000 for life. The excess pays income tax and USC for 2026. Contractual payments are taxed in full. Rules: Revenue Tax and Duty Manual 05-05-19, read 6 November 2026. General information, not tax advice.