Frequently asked questions

Is statutory redundancy pay taxable?

Statutory redundancy pay counts towards the £30,000 termination-payment exemption, so it is usually tax-free if your total qualifying termination pay stays within that limit. Holiday pay, PILON and bonuses are taxed as earnings.

Do I need two years’ service?

Yes, for the statutory minimum. You need two complete years of continuous service as an employee. Your contract may be more generous.

What if I am offered another job by the same employer?

You are not entitled to statutory redundancy pay if your employer offers to keep you on, or offers suitable alternative work which you refuse without good reason.

Is the calculator showing gross or net figures?

Statutory redundancy and the other parts of the package are entered as gross amounts (before deductions). The calculator then shows the gross package next to an estimated net take-home after income tax and employee National Insurance. Pension contributions and student loan repayments are not deducted. See Gross and net pay explained.

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