Redundancy compensation payments are projected to decline by €1.5 million in 2026, according to the budget of the Redundancy Fund submitted to parliament on Thursday and scheduled for discussion at the House finance committee.
Under the budget, compensation payments for redundant employees are expected to fall to €25.7 million in 2026, down from €27.2 million provided for in the 2025 budget. Payments are forecast to increase again in subsequent years, reaching €26.6 million in 2027 and €27.5 million in 2028.
At the same time, transfers to the Employees’ Rights Protection Fund in cases of employer insolvency are set to rise. For 2026, the amount allocated is €27.4 million, up from €25.2 million in 2025, an increase of €2.2 million. The corresponding figures are projected to reach €29.1 million in 2027 and €30.7 million in 2028.
Revenue of €180.8m forecast for 2026
The 2026 budget projects total revenue of €180.8 million, compared with €175.7 million in the 2025 budget. Revenue is expected to come primarily from contributions amounting to €165.2 million, interest income of €15.6 million, and other receipts of €67,700.
Total expenditure for 2026 is forecast at €58.1 million, compared with €55.3 million in 2025. Key spending items include:
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€25.7 million for redundancy compensation
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€27.4 million transferred to the Employees’ Rights Protection Fund
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€1.7 million for services purchased from the Social Insurance Services
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€730,000 in legal costs
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€573,800 in administrative and management expenses
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€2 million provision for contingencies and reserves
The fund’s surplus for 2026 is estimated at €122.7 million, up from €120.4 million in 2025.
Cash reserves to reach €1.1bn
The fund’s cash reserves currently stand at approximately €1 billion and are expected to rise to €1.1 billion by the end of 2026. Reserves are projected to increase further to €1.3 billion in 2027 and €1.4 billion in 2028.
All receipts are deposited directly into the General Government Account, from which payments are made. Any surplus or deficit adjusts the fund’s balance held at the Treasury. Up to 1 percent of deposits held at the Treasury is immediately available for use by the fund, while the remaining 99 percent requires approval from the finance minister.
Employees’ rights protection fund
Parliament will also examine the 2026 budget and medium-term fiscal framework for the Employees’ Rights Protection Fund in cases of employer insolvency.
For 2026, the fund’s revenue is projected at €33.3 million, compared with €34.6 million in 2025. Income consists of €27.4 million transferred from the Redundancy Fund and €5.9 million in interest income.
Expenditure is forecast at €231,500, down from €293,000 in 2025. Spending includes:
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€150,000 in insolvency-related payments to employees
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€56,000 for services from the Social Insurance Services
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€15,500 in administrative costs
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€10,000 provision for contingencies
The surplus for 2026 is estimated at €33.1 million, compared with €34.3 million in 2025.