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Redundancy Payments.

Dáil Éireann Debate, Wednesday - 27 October 2004

Wednesday, 27 October 2004

Ceisteanna (131)

Arthur Morgan

Ceist:

235 Mr. Morgan asked the Minister for Enterprise, Trade and Employment the cost to the State of increasing redundancy payments to three weeks of pay per year of service. [26002/04]

Amharc ar fhreagra

Freagraí scríofa

In the 12 months from October 2003 to end September 2004, the full cost to the State of making statutory redundancy payments amounted to €162,286,200.30. This consisted of €146,310,498.40 for redundancy rebates to employers who paid all their eligible employees their correct statutory redundancy entitlements and €15,975,701.93 in direct payments to employees where the employers had failed to pay statutory redundancy lump sums. Based on the above figures, the annual cost to the State of further increasing redundancy payments from the present two weeks pay per year of service to three weeks pay per year of service would be €243,429,300.40, an increase of €81,143,100.10.

Under the recently enacted Redundancy Payments Bill 2003, redundancy payments were substantially increased from half a weeks pay per year of service between 16 and 41 years and one weeks pay per year of service over 41 together with a bonus week, to two weeks pay for every year of service together with a bonus week in respect of all eligible employees. This was the first such major increase since the redundancy payments scheme was set up under the Redundancy Payments Act 1967, although there have been periodic increases in line with increases in wages paid in the transportable goods industries.

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