What the COVID-19 Related Lay-Off Payment Scheme is
The COVID-19 Related Lay-Off Payment Scheme is a once off, lump sum payment for employees who:
have been made redundant since 13 March 2020, or are made redundant before 31 January 2025
have lost the opportunity to build reckonable service due to temporary lay-offs caused by the COVID-19 restrictions from 13 March 2020 to 31 January 2022
How to qualify
To qualify for this scheme, you must be entitled to a redundancy payment under existing rules, meaning:
you have 104 weeks' continuous employment
your employment is fully insurable under the Social Welfare Act
your job no longer exists
you are over the age of 16
You must also:
be entitled to a redundancy payment between 13 March 2020 and 31 January 2025
have been temporarily laid off due to the COVID-19 restrictions during some or all of the period between 13 March 2020 and 31 January 2022
Information about the tax treatment of payments under the Scheme can be found on the Revenue website.
How to calculate the payment
The amount you will get will depend on the length of time you were placed on temporary lay-off due to COVID-19 before the date you are made redundant.
The calculation for the payment is based on existing redundancy rules:
Calculate the total number of days you were temporarily laid-off due to COVID-19 restrictions between 13 March 2020 and 31 January 2022
Divide this number by 365 to get the total lay-off period in years
Multiply this number by 2 to calculate the number of weeks due
Multiply the number of weeks due by your normal gross weekly wage to calculate the estimated payment due
A maximum of €600 is applied to your normal gross weekly wage.
A bonus week is not included in this scheme.
Example 1: Estimated payment calculation using the maximum values
Saoirse works as a head bartender in a pub. She was placed on lay-off for the entire qualifying period from 13 March 2020 to 31 January 2022. She is then made redundant from this job before 31 January 2025.
Total lay-off period due to COVID-19 = 690 days (13 March 2020 to 31 January 2022)
Total lay-off period in years = 1.89 (690 days divided by 365)
Number of weeks due = 3.78 (1.89 years multiplied by 2)
Normal gross weekly wage = €800. Max per week is €600
Estimated payment due = €2,268 (€600 multiplied by 3.78)
Example 2: Estimated payment calculation using multiple periods of lay-off
Jakub works as a receptionist in a hotel. He was placed on lay-off from 13 March 2020 to 31 August 2020 (172 days). He returned from lay-off in September 2020. He was placed on lay-off again on 1 January 2021 until 31 March 2021 (90 days). He is then made redundant from this job before 31 January 2025.
Total lay-off period due to COVID-19 = 262 days (172 plus 90 days)
Total lay-off period in years = 0.72 (262 days divided by 365)
Number of weeks due = 1.44 (0.72 years multiplied by 2)
Normal gross weekly wage = €450
Estimated payment due = €648 (€450 multiplied by 1.44)
Your employer should apply for this payment on your behalf first.