Navigating the Kostal Abbeyfeale Redundancy Package 2026
The Kostal Abbeyfeale Redundancy Package 2026 is the primary concern for 140 workers in West Limerick and North Kerry following the company’s decision to move production lines to China. As SIPTU begins the 30-day consultation period, affected staff must understand the tax implications of their ex-gratia payments. Protecting your financial future and managing your pension benefits during this transition is vital for you and your family.
The Impact of the 140 Job Losses at Kostal Abbeyfeale
The news of 140 job losses has been described as a devastating blow to the local economy on the Limerick-Kerry border. While Kostal’s Mallow operations remain unaffected, the shift of On-Board Charger (OBC) production from Abbeyfeale to China marks a major transition for the company’s 500-strong Irish workforce. SIPTU representatives have expressed ‘deep distress’ at the scale of the redundancies, which include 95 operator roles and 45 non-operator positions. As the 30-day statutory consultation begins next week, it is understood that redundancies will initially be sought on a voluntary basis, giving long-serving staff a window to evaluate their exit strategies.
*Includes 2026 Statutory & Ex-Gratia estimates
Supporting the Abbeyfeale Community Since 1981
At Q Financial Advisors, we know that the news from the Kostal plant isn’t just a headline—it’s a life-changing event for 140 families across West Limerick and North Kerry. Many of you have been part of the Kostal story for over 40 years, and facing a redundancy transition after such long service requires more than just a calculator; it requires empathy and expertise.
Our senior team, including Claire Mannion & Luke O Brien, specialises in helping long-serving manufacturing staff navigate the complexities of SCSB tax relief and pension preservation. We are here to ensure that your decades of hard work are protected and that you receive every cent you are entitled to.
OMA Financial Services Ltd T/A Q Financial Advisors (C135240) is regulated by the Central Bank of Ireland. With over 150 years of professional redundancy experience, we provide the local, regulated guidance you need during this transition.
Calculating Your Kostal Abbeyfeale Redundancy Pay-out
The standard statutory redundancy in Ireland is two weeks’ pay per year of service plus one bonus week, capped at €600 per week (or €680 depending on the final 2026 budget adjustment). However, for the 140 staff affected in Abbeyfeale, the real value lies in the ex-gratia payment.
If you have been with Kostal for 30 years, you aren’t just looking at a simple pay-out. You have a choice of three tax-relief “gateways”:
The Basic Exemption: €10,160 plus €765 for every year you’ve worked.
The Increased Exemption: An extra €10,000 on top of the basic (if you haven’t claimed it in 10 years).
The SCSB (Standard Capital Superannuation Benefit): This is the “Magic Formula” for long-service Kostal staff. It uses your average salary over the last 36 months and your total years of service to potentially unlock a much higher tax-free amount.
Protecting Your Pension and The ‘Irrevocable Waiver
The most vital piece of advice for any Kostal employee in 2026 is understanding the link between your redundancy and your future pension. To get a higher tax-free lump sum now through the SCSB or Increased Exemption, Revenue may ask you to sign a “waiver” on the tax-free cash you can take from your pension later.
For a 50-year-old operator with a significant pension pot, taking an extra €10,000 tax-free today might cost you €30,000 tax-free when you actually retire. At Q Financial Advisors, we use cash-flow modeling to show you exactly which path leaves more money in your pocket over the long term. Whether you choose to leave your pension as a “deferred” benefit or transfer it to a Personal Retirement Bond for early access at 50, we ensure you don’t make a decision today that your future self will regret.
Protect Your Pay-out & Your Future
Don’t leave your decades of hard work at Kostal to chance. Whether you are an operator or staff member, we will help you calculate your exact entitlements and ensure your pension is protected.
Or speak to our local team in Limerick:
Free, no-obligation consultations for all Kostal Abbeyfeale staff.
Read the official redundancy payment rules on Citizens Information
Frequently Asked Questions: Kostal Abbeyfeale Redundancy 2026
Is the Kostal Abbeyfeale Redundancy Package 2026 voluntary or compulsory?
SIPTU has confirmed that the 140 redundancies—affecting 95 operator roles and 45 non-operator positions—will initially be sought on a voluntary basis. However, this depends on the outcome of the 30-day statutory consultation period which began in February 2026.
How much of my Kostal redundancy payment will be tax-free?
Your pay-out consists of statutory redundancy (tax-free up to €600 per week of service) and an ex-gratia payment. For many Kostal staff who have been with the company since 1981, the Standard Capital Superannuation Benefit (SCSB) often allows for a much higher tax-free lump sum than the basic exemption.
Can I access my Kostal pension early if I am under 50? Typically, you can access your pension benefits from age 50 if you move your funds into a Personal Retirement Bond (PRB). If you are under 50, we can help you structure your “Deferred Benefits” so they are ready for you the moment you reach that milestone, ensuring you don’t lose out on investment growth in the meantime.
Why is Kostal moving production from Abbeyfeale to China? Kostal confirmed that the production of On-Board Chargers (OBCs) for electric vehicles is shifting to China to maintain global competitiveness. While this affects 140 staff in Abbeyfeale, the company has stated that its operations in Mallow, Co. Cork, are not currently impacted by this restructuring.
