The redundancy payment due to each employee under the statutory redundancy payment scheme depends on his or her age and length of service (up to twenty years). This determines the number of weeks pay due, which is then subject to a limit on weekly pay.

To calculate the number of weeks pay due, you should use the following amounts –

• 0.5 week’s pay for each full year of service where age during year less than 22
• 1.0 week’s pay for each full year of service where age during year is 22 or above, but less than 41
• 1.5 weeks’ pay for each full year of service where age during year is 41+

Employers using the above amounts to calculate an employee’s entitlement to redundancy pay should note that where an employee’s service crosses two bands, the figures in each band should be added together. For example -

Example 1 - if you are 25 with 7 years service, you will be entitled to 5 weeks’ redundancy pay. The 5 weeks entitlement is based on 0.5 weeks’ pay for each completed year of service between age 18 and 22 and 1 week’s pay for each completed year of service between age 22 and 25. (The middle band of 1 weeks’ pay only applies where an employee, who is entitled to a redundancy payment, has completed a year service at age 22 or above).

Example 2 - if you are 38 years old and have 12 years of service, you will be entitled to 12 weeks’ redundancy pay. The 12 weeks is based on 1 week’s pay for each completed year of service between age 26 and 38.

Example 3 – if you are 49 years old and have 15 years of service, you will be entitled to 19 weeks redundancy pay. The 19 weeks’ entitlement is based on 1 week’s pay for each completed year of service between age 34 and 41 and 1.5 weeks’ pay for each completed year of service between age 41 and 49.

The maximum week’s pay that an employee is entitled to under the statutory scheme is £310. The limit changes every February in line with the Retail Prices Index. The increase of the limit on a week’s pay will apply where the relevant date (including the projected date for redundancy payment purposes) falls on or after 1 February.

For the definition of a week’s pay, see Redundancy Payments.

This page is intended only as a guide and shows how statutory redundancy pay is calculated for people who are entitled to receive it. Whether or not you are entitled to redundancy pay will depend on your individual circumstances.

To calculate your redundancy entitlement, please fill in the three fields below and click Submit button: 

STATUTORY REDUNDANCY PAY TABLE

To calculate the number of weeks’ redundancy pay, cross reference the person’s age and years’ of service and then multiply that number by the weekly salary (maximum weekly salary is £310 ). E.g. a person with a salary of £200 aged 22 with 4 years of service will be entitled to two weeks salary e.g. a total redundancy of £400.

17* - The table starts at age 17, as it is possible for a 17 year old to have 2 years’ service. Compulsory school leaving age can be 15^3/4 or 15^4/5 where a child is 16 before 1 September. Particular care should be taken when calculating an individual’s redundancy pay when they joined as an employee below the age of 16.

61* - The table stops at age 61 because for employees age 61 and over, the payment remains the same as for age 61.

The table has been changed to incorporate user comments received since the introduction of the Employment Equality (Age Regulations) in October 2006.