Work out redundancy pay instantly with clear inputs, formula shown and shareable results.
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.
Weeks entitlement
Weeks = 1.5 x Years aged 41+ + 1.0 x Other years counted
Payment
Payment = Weeks entitlement x Capped weekly pay
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.
Because statutory redundancy is a floor for everyone rather than full compensation for higher earners. Contractual schemes commonly use uncapped actual pay.
A threshold amount is often tax-free with the excess taxable, but the rules and thresholds differ considerably by jurisdiction.