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Statutory Redundancy Pay Calculator 2024/25

Calculate your statutory redundancy entitlement based on age, years of continuous service, and weekly pay. The weekly pay cap for 2024/25 is £643. Maximum statutory payment is £19,290.

Statutory Redundancy Pay Calculator

Based on age, continuous service, and weekly pay (2024/25 rates)

Must be between 16 and 80

Full years only count (up to 20 years maximum)

Your gross weekly earnings before tax and NI

The 2024/25 cap is £643/week. Uncheck only if calculating enhanced redundancy.

5 Redundancy Planning Tips

  1. Negotiate enhanced redundancy: Statutory pay is a floor, not a ceiling — many employers offer more, especially during collective consultation.
  2. First £30,000 is tax-free: Statutory and enhanced redundancy payments up to £30,000 are exempt from income tax and National Insurance.
  3. Notice pay and holiday pay are separate: Your redundancy payment does not replace notice pay (PILON) or accrued annual leave — claim both.
  4. Employer insolvency: If your employer cannot pay, claim directly from the Redundancy Payments Service (RPS) via GOV.UK within 6 months.
  5. PILON tax treatment: Post-employment notice pay (PENP) is fully taxable even if packaged as a lump sum — take advice before signing a settlement agreement.

How Statutory Redundancy Pay Works

UK law entitles most employees with 2+ years' service to statutory redundancy pay when dismissed by reason of redundancy. The amount depends on three factors: your age at the date of dismissal, your completed years of continuous service (up to 20), and your gross weekly pay (capped at £643 for 2024/25).

Age Multipliers

  • Under 22:0.5 week's pay per year of service
  • Age 22–40:1 week's pay per year of service
  • Age 41+:1.5 weeks' pay per year of service

The £30,000 Tax-Free Threshold

Genuine redundancy pay — statutory or enhanced — is exempt from income tax and National Insurance up to £30,000. Amounts above this threshold are subject to PAYE in the normal way. Note that payments in lieu of notice (PILON) are always taxable even if included in the same lump sum.

FAQs

Can my employer pay more than statutory?

Yes — statutory redundancy pay is the legal minimum. Many employers, particularly larger ones or those under collective agreements, offer enhanced redundancy packages.

Does redundancy pay affect benefits?

A redundancy payment can affect means-tested benefits such as Universal Credit if it takes your savings above the £6,000 threshold. Seek advice from Citizens Advice if needed.

Is there a time limit for claiming?

You must claim statutory redundancy pay within 6 months of your dismissal date. You can apply to an employment tribunal if your employer refuses to pay.