Redundancy Pay Calculator
Calculator Your Employee Redundancy
The statutory redundancy pay cap is £643 per week from 6th April 23 (previous rate was capped at £571 per week).
Statutory redundancy pay is based on age, weekly pay, and the number of continuous years of service with the employer. Where earnings vary; the weekly pay is the average of earnings per week over the 12 weeks before the day the employee’s redundancy notice. To qualify for statutory redundancy pay you must have 2 or more continuous years of service.
Example:
Alice has been employed by her employer since 1 February 2015; she works full time and earns £700 per week. She is to be made redundant on 31st May 2021 at the age of 25. She has 6 years completed years of service at the termination date.
Her statutory redundancy entitlement is:
4.5 weeks @ £544 (the cap in force from April 2021) = £2448
For each full year of service, the calculation is based on the following:
Up to age 22 = half a week’s pay
Age 22 to 40 = 1 weeks’ pay
Age 41 and older = 1.5 weeks’ pay
As Alice’s actual weekly earnings are above the statutory redundancy payment cap, the calculation is based on the cap payment in force at the time.
Click here to access the .gov redundancy calculator.
HR & Health and Safety Support
Tools to help manage and protect your business with online support
HR SERVICES HS SUPPORT
Online Support
Remote Support
On-Site Support
HR & Health and Safety Support
Quest provide the tools and work with you remotely to support you and your business
HR SERVICES HS SUPPORT Online Support
Remote Support
On-Site Support
HR & Health and Safety Support
Your personal people solution supporting your business on site
HR SERVICES HS SUPPORT Online Support
Remote Support
On-Site Support
* Please note that all calls may be recorded for training or monitoring purposes.
EmailPartners and Accreditations
Useful Links
Health and Safety Executive (HSE)
Institution of Occupational Safety and Health (IOSH)
Chartered Institute of Personnel and Development (CIPD)
Advisory, Conciliation and Arbitration Service (ACAS)
© 2019 Quest Business Services Limited