How old was your employee when they were made redundant?
Redundancy Pay Calculator
Calculate statutory redundancy pay quickly and easily
£0
(£0 in Northern Ireland)
1
years old
2
How many years has your employee worked for you?
full years worked
Only count full years of service. For example, 5 years and 3 months count as 5 years.
3
What is your employee's weekly pay before tax and any other deductions?
per week
Examples of other deductions include student loans and child maintenance.
How to calculate redundancy pay
Redundancy pay is worked out on the basis of age, weekly pay and length of service (employees must have worked for you continuously for 2 years or more to qualify). They will be entitled to:
- 0.5 week’s pay for each full year of service under the age of 22
- 1 week’s full pay for each full year of service over 22 and under 41
- 1.5 week’s full pay aged 41 and over
However, pay is capped at £538 (£525 in Northern Ireland) per week and length of service is capped at 20 years.
The maximum amount of statutory redundancy pay an employee can receive is £16,140 (£16,800 in Northern Ireland).
Years of service or earnings over these amounts should not be included in the calculation.
Additional redundancy pay
As an employer, you can decide to offer redundancy pay over and above the statutory requirement. You can also choose to shorten the qualifying period to less than two years. This information should all be written into the employment contract. Redundancy pay up to £30,000 is tax-free.
Caveats and rules can be found here.
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