How UK redundancy pay is calculated

Statutory redundancy pay is built from three parts: your age during each full year counted, your full years of continuous service (up to 20), and a capped weekly pay figure.

The three age bands

• Under 22: 0.5 week's pay per full year.
• Age 22 to 40: 1 week's pay per full year.
• Age 41 and over: 1.5 weeks' pay per full year.

Age is assessed for each year counted, not simply your age on the final day.

Worked example

Suppose you are 45 at redundancy with 8 full years' service and average weekly pay of GBP 760. If the current statutory cap is GBP 719, the calculation uses GBP 719. Over those 8 years, four years may fall into age 37-40 (1 week each) and four years into age 41-44 (1.5 weeks each). Total weeks: 4 + 6 = 10 weeks. Estimated statutory amount: 10 x GBP 719 = GBP 7,190.

Try your own numbers in the calculator and compare with your HR breakdown.