Basic Exemption
Only complete years are counted for the €765 service element. Revenue's published example gives €25,460 for 20 complete years of service.
Increased Exemption
The Basic Exemption can be increased by up to €10,000 where the conditions are met. The available increase can be reduced by a tax-free pension lump sum, or the present value of a future entitlement. The increased exemption is also subject to the ten-year condition.
SCSB
Revenue's definition of remuneration for this calculation can include taxable salary, bonuses, commission, overtime, holiday pay and BIK. This is why the calculator asks for average remuneration rather than salary alone.
What should not be pushed into the relief calculation?
A lump sum that is contractual is taxable in full and does not qualify for these exemptions. A contractual payment in lieu of notice is likewise treated as pay. Statutory redundancy is separately exempt and should not simply be mixed into the qualifying ex-gratia amount.