Finance & Irish taxes · Calculator companion · By K Imports
Termination payment exemption comparison: practical guide
This guide explains how to use the Count.ie termination payment exemption comparison. Compare basic/increased exemption and SCSB for a non-contractual ex-gratia termination payment. Follow the inputs, method and worked example below, then compare your own scenario.
Guide written .
Open the Termination payment exemption comparison calculatorWhat to prepare
- Have the figures for non-contractual ex-gratia payment (€), complete years with this employer and total emoluments in final 36 months (€) ready, from a dated document, with the period (annual, monthly or per transaction) that each input expects.
- Note the date of the transaction, since this model has no year selector and fixed rates may have changed.
- Compare your circumstances with the cited Revenue basic exemption and Revenue increased exemption before relying on the headline result.
Understand the inputs
The calculation method
Basic exemption = €10,160 + €765 per complete service year. Permitted increase = max(0, €10,000 − pension lump sum). SCSB = average final 36-month annual pay × service years / 15 − pension lump sum. Apply the greatest available method within the remaining €200,000 lifetime cap.
Worked example
Illustrative inputs and their result.
Example inputs
- Non-contractual ex-gratia payment (€)
- 60000
- Complete years with this employer
- 18
- Total emoluments in final 36 months (€)
- 95000
- Tax-free occupational pension lump sum received/receivable (€)
- 11000
- Increased-exemption conditions met; not used in preceding 10 years
- Yes
- Previous exempt termination amounts used against lifetime limit (€)
- 0
Calculated example result
- Applicable Exemption
- €27,000.00
- Taxable Ex Gratia
- €33,000.00
How to interpret the result
This calculates the exempt/taxable split, not final tax or take-home pay. Distinguish a tax saving, a tax bill, cash received and money remaining: they are not interchangeable. An estimate does not establish eligibility, filing compliance or when a refund will be paid.
Change one input of termination payment exemption comparison at a time and record the result; keep a record of the year, date and assumptions so a change in the result can be explained.
Common mistakes to avoid
- Do not mix tax years or apply a newly announced measure to an earlier transaction.
- Avoid counting an allowance, credit, contribution or loss twice.
- Check exclusions and personal circumstances before relying on the headline result.
Assumptions and sources
This calculates the exempt/taxable split, not final tax or take-home pay. Keep statutory redundancy, contractual notice pay, salary and holiday pay separate. Pension present value, foreign service, unpaid leave and special exemptions may require advice.
Rules checked . Baseline rules year: 2026. Reviewed scope: Ordinary ex-gratia exemptions; not net payroll. This does not verify every selectable year, date or Budget announcement profile.
Sources and further information
If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.