How is statutory redundancy pay calculated?

Half a week's pay per year of service under 22; one week's pay per year between 22-40; 1.5 weeks' pay per year over 41. Pay is capped at £643/week.

Is there a cap on redundancy pay?

Yes. The statutory weekly pay cap (£643 from April 2024) and a maximum 20 years of service apply, capping statutory redundancy at £19,290.

UK Statutory Redundancy Pay Calculator

Formula Definitions

The UK Statutory Redundancy Pay Calculator works by applying a well-defined formula to the values you enter. Understanding the formula behind the calculation helps you interpret the result and check that your inputs are correct. Below we break down the key components that drive the UK Redundancy Pay.

The core formula used by this calculator is:

Result = f(principal, rate, time, jurisdiction)

Each variable in the formula has a specific meaning:

principal — Initial amount, income, or base value entered into the UK Redundancy Pay.
rate — Interest rate, tax rate, return rate, or growth rate applied per period.
time — Number of periods (years, months, or days) over which the calculation runs.
jurisdiction — Country, tax year, filing status, or regional rules that adjust the calculation.
Result — Computed amount: total, liability, return, repayment, or present/future value.

Note: Financial results are estimates and depend on the accuracy of the inputs and applicable rules.

How to Use This Calculator

Enter your financial figures. Enter income, principal, interest rate, tax year, or relevant financial parameters into the UK Statutory Redundancy Pay Calculator.

Adjust regional settings. Select your country, tax jurisdiction, filing status, or applicable tax year and rates.

Calculate your result. Press Calculate to compute the financial result, tax liability, return, or repayment amount.

Review the breakdown. Review the detailed breakdown including totals, effective rates, interest components, and applicable tax implications.

Glossary and Definitions

Principal

The initial amount of money on which interest, returns, or tax liabilities are calculated.

Interest rate

The percentage charged or earned per period on the principal, expressed as an annual rate unless stated otherwise.

Compounding

The process by which interest is added to the principal so that subsequent interest is earned on the combined amount.

Present value

The current worth of a future sum, discounted at a given rate to account for the time value of money.

UK redundancy pay