Statutory Redundancy Pay Calculator (UK 2024)

Redundancy Pay Guide

Statutory Redundancy Pay Formula

Statutory redundancy pay is based on: weekly pay (capped at £643/week for 2024), years of service (max 20 years count), and age. Rate per year of service: under 22: 0.5 weeks' pay per year. Age 22-40: 1 week's pay per year. Age 41 or over: 1.5 weeks' pay per year. Maximum: 30 weeks × £643 = £19,290 (statutory maximum for 2024). The weekly pay cap means high earners do not receive more than the cap regardless of actual salary. Minimum service: you need at least 2 complete years of continuous serv

Calculation Example

Age 42, 8 years' service, £500/week. Years under 22 in service: 0 (started aged 34). Years aged 22-40: 6 years (aged 34-40). Years aged 41+: 2 years (aged 40-42). Calculation: 6 × 1 × 500 = £3,000. Plus: 2 × 1.5 × 500 = £1,500. Total: £4,500. Note: if service predates age 22 or 41, those years are calculated at the rate for the age band they occurred in. Online calculator at gov.uk/calculate-your-redundancy-pay handles this automatically.

Tax on Redundancy Pay

First £30,000 of statutory (and contractual) redundancy pay is tax-free. Above £30,000: taxed as normal income. Payments in lieu of notice (PILON): fully taxable (income tax + NI) even if described as 'redundancy'. Statutory notice worked: taxable as normal pay. Non-cash benefits (company car, private medical etc.): included in the £30,000 limit if paid as part of termination. Settlement agreements (formerly compromise agreements): any payment above the statutory redundancy entitlement should be

Your Rights in Redundancy

Qualifying period: 2 complete years of continuous employment. Individual consultation: minimum. Collective redundancy (20+ employees): 30 or 45 days' collective consultation required. Collective redundancy without consultation: protective award of up to 90 days' pay. Selection criteria: must not discriminate (age, disability, sex, race, religion). Trial periods in new roles: 4-week trial period — can claim redundancy if new role unsuitable. Time off to look for work: 40% of final week's pay for