The basic amount of an employee's ex gratia termination payment which is always tax free is:

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Multiple Choice

The basic amount of an employee's ex gratia termination payment which is always tax free is:

Explanation:
The key idea is how ex gratia termination payments are taxed: there is a tax-free base amount that grows with years of service. The tax-free portion is the base of €10,160 plus €765 for each complete year of service. This portion is always tax-free, while any amount above it is generally taxable as employment income. So the correct rule matches the option that states €10,160 plus €765 for each complete year of service. For example, with 6 full years of service, the tax-free portion would be €10,160 + 6×€765 = €14,750. The other figures and formulas do not reflect this structure.

The key idea is how ex gratia termination payments are taxed: there is a tax-free base amount that grows with years of service. The tax-free portion is the base of €10,160 plus €765 for each complete year of service. This portion is always tax-free, while any amount above it is generally taxable as employment income. So the correct rule matches the option that states €10,160 plus €765 for each complete year of service. For example, with 6 full years of service, the tax-free portion would be €10,160 + 6×€765 = €14,750. The other figures and formulas do not reflect this structure.

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