How statutory redundancy pay is calculated

You usually qualify if you are an employee with two complete years of continuous service. GOV.UK sets out the weekly multipliers, counted back from the date your job ends:

• 1½ weeks’ pay for each complete year after your 41st birthday
• 1 week’s pay for each complete year after your 22nd birthday
• ½ week’s pay for each complete year up to your 22nd birthday

No more than 20 years are used. Weekly pay is the average over the 12 weeks before you were given notice, then capped (see the weekly cap).

nidirect publishes worked examples this calculator is tested against. A 45-year-old with 15 complete years is due 17 weeks (four years at 1½ weeks and 11 years at 1 week). A 30-year-old with 10 years is due 9 weeks. A 35-year-old with 5 years is due 5 weeks.

If your wage is £325 a week and you are 35 with 5 years’ service, 5 × £325 = £1,625 (gross). That matches nidirect’s third example. Statutory redundancy pay is a gross figure; it usually counts towards the £30,000 termination-payment exemption, so the net amount is often the same if you stay within that limit. Holiday pay and PILON are also entered as gross amounts, then taxed as earnings — see gross and net pay explained.