Statutory Redundancy Pay Calculator | Free & Accurate

Redundancy can be a stressful time, but understanding your entitlement can make it easier. Statutory redundancy pay is the minimum amount your employer must pay if you are made redundant, based on your age, length of service, and weekly pay. A Statutory Redundancy Pay Calculator helps you quickly determine the correct amount without errors.

Why Calculating Statutory Redundancy Pay Is Important

• Financial planning: Know how much you will receive to plan your next steps.
• Transparency: Ensure your employer pays the correct amount.
• Education: Understand your rights and entitlements under employment law.
• Quick and accurate: Avoid mistakes with manual calculations.

Redundancy Pay Formula

Redundancy pay is calculated using the employee’s age, years of service, and weekly pay:

• Employees under 22 years: 0.5 week’s pay for each full year of service
• Employees aged 22 to 40: 1 week’s pay for each full year of service
• Employees aged 41 and above: 1.5 week’s pay for each full year of service

Note: Weekly pay is capped according to government rules. Maximum statutory weekly pay applies. Total Redundancy Pay = (weeks per year based on age) × years of service × weekly pay

Step-by-Step Example 1: Age 35, 10 Years’ Service

Problem: Employee aged 35, 10 years’ service, weekly pay £500.
Step 1: Employee is aged 22–40 → 1 week’s pay per year.
Step 2: Multiply weeks per year × years of service → 1 × 10 = 10 weeks.
Step 3: Multiply by weekly pay → 10 × £500 = £5,000 redundancy pay.

Step-by-Step Example 2: Age 45, 8 Years’ Service

Problem: Employee aged 45, 8 years’ service, weekly pay £400.
Step 1: Employee is 41+ → 1.5 weeks per year.
Step 2: Multiply by years of service → 1.5 × 8 = 12 weeks.
Step 3: Multiply by weekly pay → 12 × £400 = £4,800 redundancy pay.

How the Statutory Redundancy Pay Calculator Works

1. Enter your age, years of continuous service, and weekly pay.
2. The calculator applies the statutory formula according to government rules.
3. Weekly pay is automatically capped if it exceeds the legal maximum.
4. Instantly get your total statutory redundancy pay amount.

FAQs – Statutory Redundancy Pay

1. Who is eligible for statutory redundancy pay?
Employees who have worked continuously for 2 years or more in the UK are eligible.

2. How is weekly pay calculated?
It is based on your average weekly earnings, including bonuses and allowances.

3. Is there a maximum weekly pay?
Yes, the UK government sets a maximum weekly pay that applies to statutory redundancy calculations.

4. Does age affect redundancy pay?
Yes, employees under 22, 22–40, and 41+ have different week multipliers per year of service.

5. Can I receive more than the statutory redundancy pay?
Yes, employers can offer enhanced redundancy packages, but the statutory calculation is the minimum.

6. Are part years counted?
Only full years of service are considered for statutory calculations.

7. Can this calculator handle maximum weekly pay limits?
Yes, it automatically caps weekly pay according to government regulations.

8. Is statutory redundancy pay taxable?
Payments up to a certain threshold are tax-free; consult HMRC for current limits.

9. Can I use this calculator if I work abroad?
This calculator is based on UK statutory redundancy rules only.

10. Is this calculator free to use?
Yes, it is free, accurate, and works instantly in any browser.