Statutory redundancy pay in England and Wales depends on three things: your age during each year of service, your weekly pay, and how long you have been continuously employed.
Eligibility:
You must have at least two years of continuous service with your employer to qualify for statutory redundancy pay.
How it is calculated:
For each complete year of service, you receive a set amount based on your age during that year:
1. Half a week's pay for each complete year of service where you were under 22.
2. One week's pay for each complete year of service where you were aged 22 to 40.
3. One and a half weeks' pay for each complete year of service where you were aged 41 or over.
Key limits:
The maximum number of years that can count is 20.
Weekly pay is capped. From 6 April 2024, the cap is £643 per week. If you earn more than this, only £643 is used in the calculation. This cap is usually updated each April, so if your redundancy falls after April 2025, you should check whether a new cap has been announced.
The maximum statutory redundancy payment is therefore currently £20,930 (based on the £643 weekly cap, 20 years of service, and the highest age band).
Statutory redundancy pay is tax-free.
Contractual or enhanced redundancy pay:
Some employers offer more generous redundancy terms through the employment contract, a staff handbook, or a collective agreement. If your employer has a contractual redundancy scheme, you may be entitled to more than the statutory minimum. Check your contract and any workplace policies carefully.
Practical points:
If you want to check or estimate your entitlement quickly, the government provides an online redundancy pay calculator at gov.uk which will do the arithmetic for you once you enter your start date, date of redundancy, age, and weekly pay.
If your employer refuses to pay your statutory redundancy, you can make a claim to the employment tribunal within six months of the relevant date, which is usually the date your employment ended. If your employer is insolvent, you can claim from the Redundancy Payments Service instead.
To give you a more precise figure, I would need to know your age, your weekly gross pay, and your start date with the employer. If you share those details I can work it out for you.
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