UK Redundancy Pay Calculator
Calculate your statutory redundancy pay based on your age, years of service and weekly pay. Uses the latest UK statutory caps and rates.
Understanding UK Statutory Redundancy Pay
Redundancy pay is a legal entitlement under the Employment Rights Act 1996 for most employees in the UK who are dismissed due to redundancy. The amount you receive depends on three key factors: your age at the time of redundancy, your length of continuous service with the employer, and your weekly pay (up to the statutory cap of £643 per week). Our redundancy pay calculator helps you estimate what you might be entitled to receive based on these criteria.
To qualify for statutory redundancy pay, you must have been employed continuously for at least 2 years, be aged 20 or over, and be dismissed because your job no longer exists or the business is closing. The calculation is straightforward: multiply your weekly pay (capped at £643) by the number of weeks you're entitled to, based on your age and years of service. For example, a 45-year-old with 10 years of service would receive 15 weeks' pay (1.5 weeks × 10 years).
How Much Redundancy Pay Are You Entitled To?
The amount of redundancy pay you receive is determined by the statutory formula under UK law. Your age band determines the multiplier: employees under 22 receive 0.5 weeks' pay per year of service, those aged 22 to 40 receive 1 week's pay per year, and those aged 41 and older receive 1.5 weeks' pay per year. Your weekly pay is calculated as your gross weekly salary, capped at £643 for 2024/25.
Service is calculated in complete years only, so if you've been with your employer for 12 years and 6 months, only 12 years count towards your redundancy entitlement. The maximum service that can be counted is 20 years, meaning the absolute maximum statutory redundancy pay is £12,860.
Tax Treatment and Payment of Redundancy Pay
One of the significant benefits of redundancy pay in the UK is the tax-free allowance. The first £30,000 of your statutory redundancy pay is completely tax-free and does not count towards your income tax or National Insurance contributions. However, if your redundancy package exceeds £30,000, any amount above this threshold is subject to both income tax and National Insurance at your marginal rate.
If your employer fails to pay statutory redundancy pay, you can make a claim to an Employment Tribunal within 3 months of your last day of employment. Enhanced redundancy packages may have different tax implications depending on how they're structured.
常见问题
What is the statutory redundancy pay cap in the UK for 2024/25?
The statutory redundancy pay cap is £643 per week (as of 2024/25), with a maximum of 20 years of service counted. This means the absolute maximum statutory redundancy payment is £12,860. This cap is updated annually in line with inflation.
How is redundancy pay calculated based on age and length of service?
Under the Employment Rights Act 1996, the calculation depends on your age: employees under 22 receive 0.5 weeks' pay per year of service, those aged 22-40 receive 1 week's pay per year, and those aged 41+ receive 1.5 weeks' pay per year.
Is redundancy pay in the UK subject to income tax?
The first £30,000 of statutory redundancy pay is tax-free in the UK. Any amount above this threshold is subject to income tax and National Insurance contributions. Many employers offer enhanced redundancy packages which may have different tax implications.
How long after redundancy should I receive my redundancy pay?
Your redundancy entitlement should be paid no later than your final day of employment, or within a reasonable timeframe. Most employers process redundancy pay within the final payslip or within 30 days.
What are my rights if my employer offers enhanced redundancy pay?
Enhanced redundancy packages are offered by some employers above the statutory minimum. These are negotiable and vary by company policy. Any payments above the £30,000 threshold may have different tax treatment.