UK Redundancy Pay Calculator

Calculate your statutory redundancy pay entitlement using this free calculator. Enter your age, weekly gross pay, and years of service to get an instant estimate based on current UK legislation. This tool helps you understand how age bands and the statutory pay cap affect your redundancy payment.

Calculate Your Redundancy Pay

Frequently Asked Questions

How is statutory redundancy pay calculated in the UK?

Statutory redundancy pay is calculated based on your age, weekly gross pay, and years of service. You get: 0.5 week's pay for each full year under 22, 1 week's pay for each full year between 22 and 40, and 1.5 weeks' pay for each full year at 41 or older. The calculation is capped at 20 years of service and a maximum weekly pay of £643.

What is the maximum statutory redundancy payment?

The maximum statutory redundancy payment is currently £19,290. This is based on the maximum weekly pay cap of £643, maximum service of 20 years, and the highest age band multiplier of 1.5 weeks per year (20 years × 1.5 × £643 = £19,290).

Does age affect redundancy pay?

Yes, age significantly affects statutory redundancy pay. Workers under 22 receive 0.5 week's pay per year of service, those aged 22-40 receive 1 week's pay per year, and those aged 41 or over receive 1.5 weeks' pay per year of service. This means older workers with the same length of service receive higher statutory redundancy payments.

What is the statutory weekly pay cap for redundancy?

The statutory weekly pay cap for redundancy calculations is currently £643. This means that even if your actual weekly pay is higher, only £643 will be used in the calculation of your statutory redundancy entitlement. The cap is typically reviewed and updated annually by the UK government.

How many years of service count towards redundancy pay?

A maximum of 20 years of service counts towards statutory redundancy pay. If you have worked for more than 20 years, only the most recent 20 years will be used in the calculation. Each complete year of service counts as one year for calculation purposes.