Redundancy Pay Calculator

Work out redundancy pay instantly with clear inputs, formula shown and shareable results.

About Redundancy Pay Calculator

Statutory redundancy pay is calculated in weeks of pay per year of service, with an enhanced multiplier for years worked at older ages, subject to caps on both the weekly pay figure and the number of years counted. Contractual schemes often improve on all three.

Formulas

Weeks entitlement

Weeks = 1.5 x Years aged 41+ + 1.0 x Other years counted

Payment

Payment = Weeks entitlement x Capped weekly pay

Worked example

With the default values below, Redundancy Pay Calculator returns Statutory redundancy payment of $203,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Weekly pay (capped at the statutory maximum): 14,000
Complete years of service: 12
Of those, years worked while aged 41 or over: 5
Maximum years counted: 20

Results

Statutory redundancy payment: $203,000.00
Weeks of pay entitlement: 14.5
Years of service counted: 12
Weeks from years aged 41 and over: 7.5

Step by step

1Values used
2Weeks entitlement
3Payment
4Statutory redundancy payment= 203,000.00
5Weeks of pay entitlement= 14.5
6Years of service counted= 12
7Weeks from years aged 41 and over= 7.5

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

Frequently Asked Questions

Why is weekly pay capped?

Because statutory redundancy is a floor for everyone rather than full compensation for higher earners. Contractual schemes commonly use uncapped actual pay.

Is redundancy pay taxable?

A threshold amount is often tax-free with the excess taxable, but the rules and thresholds differ considerably by jurisdiction.