Varadkar entitled to exit payment of €280,000 when he retires as a TD

Departing Taoiseach Leo Varadkar will be entitled to once-off termination payments worth almost €280,000 if he decides not to contest the next general election.

Likewise Simon Coveney, who will step down as Minister for Enterprise on Tuesday, will be entitled to similar severance payments totalling €236,000.

A TD who steps down from Cabinet is entitled to a maximum of 14 months salary as a termination payment when they retire as TD or fail to get re-elected in a general election. The money, which is taxable, is paid out as a lump sum of two months’ payment and then 12 equal payments over the course of a year.

The salary of the Taoiseach has recently risen to €239,000, which would leave Mr Varadkar entitled to payments totalling €279,000 when he leaves the Oireachtas. The money paid would be taxed. The salary of a senior Minister is now €202,000, which would allow Mr Coveney a termination sum €236,000 to be paid over the course of a year.

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The payments are separate to the ministerial and TDs pensions to which Mr Varadkar and Mr Coveney will be entitled once they reach retirement age of 66.

As a former taoiseach Mr Varadkar is also entitled to secretarial assistance worth up to almost €60,000 annually, as well as availing of VIP services at Dublin Airport.

Former taoisigh have not been entitled to a State car since 2011. However, they can request the use of a State car five times a year. The VIP services have not been used by any former taoisigh. The late John Bruton, a former Fine Gael taoiseach, availed of a State car on only one occasion. Neither Enda Kenny nor Bertie Ahern have availed of the service.

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