Redundancy Pay Calculator
Statutory pay usually uses a capped weekly wage.
Work out Redundancy Pay. Statutory pay usually uses a capped weekly wage. Names the misconception directly.
Total payment
15,100
7,000 tax-free · 8,100 taxable
In many systems the weekly pay used for the statutory calculation is capped well below actual earnings, which is why a statutory redundancy payment often looks small against the salary. That cap is usually the single largest factor in the result. Notice pay and untaken holiday pay are separate from redundancy pay and usually taxed differently — often fully taxable where the redundancy element has a tax-free threshold. Lumping them together overstates what is tax-free. Years of service are typically rounded down, and many systems cap the number counted. Twenty years and thirty years can produce identical statutory payments, which is worth knowing before negotiating.
How the Redundancy Pay Calculator works
Redundancy pay from service and weekly pay, with notice, untaken holiday and the tax-free threshold separated out. The capped weekly rate is usually why the statutory figure looks small against the salary.
Also known as: how much redundancy will i get · statutory redundancy pay calculator · why is my redundancy so low · is redundancy pay taxed
Frequently asked questions
How is redundancy pay calculated?
Weeks of pay per year of service, times a weekly rate that is usually capped well below actual earnings, with the years counted often capped too.
Why is my statutory payment so low?
The capped weekly pay. Someone earning 900 a week may have their redundancy calculated at 700, and that cap is typically the single largest factor in the result.
Is redundancy pay taxable?
Often partly. Many systems have a tax-free threshold for the redundancy element, while notice pay and untaken holiday pay are fully taxable — which is why they are itemised separately here.
What is an enhanced redundancy package?
Anything above the statutory minimum, offered contractually or negotiated. The multiplier here lets you model it, and it applies to the redundancy element rather than to notice or holiday.
Does age affect redundancy pay?
In several jurisdictions, yes — some award more weeks per year of service for older workers. That is not modelled here, so check your own statutory formula.
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