💷 Redundancy Pay Calculator
Calculate UK statutory redundancy pay based on age, years of service, and weekly pay. Uses 2024/25 rates. Remember to check whether the employee's contract provides for enhanced redundancy pay above the statutory minimum before confirming any figures.
Maximum 20 years counts
Based on UK statutory redundancy pay rates for 2024/25. Weekly pay cap: £643. Maximum 20 years of service. This calculator provides a statutory minimum — your contract may entitle the employee to enhanced redundancy pay. Statutory redundancy pay is tax-free up to £30,000.
How Statutory Redundancy Pay Works
The amount depends on three things: how old the employee was during each year of service, how many complete years they have worked (maximum 20), and their gross weekly pay, which is capped at 643 per week for 2024/25. The calculation per year of service is: Under 22: half a week's pay Age 22 to 40: one week's pay Age 41 or over: one and a half week's pay The maximum statutory redundancy pay for 2024/25 is 19,290, based on 30 weeks at the 643 cap.
Tax Treatment
Statutory redundancy pay is tax-free up to 30,000. Any amount above that is subject to income tax but not National Insurance. Enhanced redundancy pay can also be included within the 30,000 tax-free threshold. If total termination payments are likely to exceed that amount, speak to your payroll team or take tax advice before confirming figures.