Michael McNamara (Clare, Independent)
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163. To ask the Minister for Enterprise, Trade and Employment if, in light of the UK government's decision to increase the maximum amount of weekly pay for the purpose of calculating a redundancy payment from £594 to £699, with effect from 6 April 2023, he intends to increase the maximum amount of €600 which was set back in 2004. [14785/23]

Neale Richmond (Dublin Rathdown, Fine Gael)
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By law, it is the employer's responsibility to pay statutory redundancy to eligible employees. Statutory redundancy in Ireland is based on the employee’s length of reckonable service and their weekly remuneration. Eligible employees are entitled to 2 weeks' pay per year of reckonable service, plus one bonus week, capped at €600 per week.

By contrast with the situation in the UK, there are no age-related conditions and there is no limit on the number of years service taken into account when calculating an employee’s redundancy entitlement in Ireland. Notwithstanding the increase in the cap on weekly remuneration in the UK, the redundancy regime in Ireland remains substantially more beneficial to employees and it is therefore not directly comparable.

Over the past year the Government has introduced or progressed several measures with the aim of improving working conditions in Ireland. These measures are an important part of building an inclusive economy – particularly one that is attractive to highly mobile labour and skills. These measures are necessary to improve the lives of workers in Ireland and to ensure Ireland is in line with other European countries.

It is important to also be aware of the impact of these measures on employers, particularly in the context of the existing financial pressures on businesses. Any consideration of an increase to the €600 limit would have to be carefully balanced with the overall economic climate and running costs for businesses.

Significant consultation with a number of Government Departments, the social partners and other relevant stakeholders would also be required.