Who qualifies for statutory redundancy pay in the UK?

An employee normally qualifies if they have at least two years of continuous service and are dismissed by reason of redundancy. Workers and contractors do not usually qualify in the same way.

Is redundancy pay based on actual pay or capped pay?

Statutory redundancy pay uses capped weekly pay, not always actual weekly earnings. Employers must apply the statutory cap in force on the dismissal date.

Do employers have to pay notice as well as redundancy pay?

Yes, in many cases notice pay is separate and still due unless the employee works notice or another lawful arrangement applies. Holiday pay may also be due.

Can an employer offer more than statutory redundancy pay?

Yes. Employers can offer enhanced redundancy terms by contract, policy or settlement agreement. The statutory minimum still remains the compliance floor.

Redundancy Pay Calculator UK: Employer Guide

Redundancy pay calculator UK searches are high-intent because employers usually need an answer fast and the stakes are high. A wrong redundancy payment can trigger claims for unlawful deduction, unfair dismissal or protective awards if the wider process is flawed.

This guide explains how statutory redundancy pay is calculated, what a calculator can and cannot do, how the weekly pay cap works and what employers must check before confirming a dismissal. It complements any wider Redundancy Process UK Step by Step procedure.

How does a redundancy pay calculator UK page work?

A redundancy pay calculator estimates statutory redundancy pay using three main factors: age, length of service and capped weekly pay. Under the Employment Rights Act 1996, employees normally need two years’ continuous service to qualify for statutory redundancy pay.

Statutory and contractual redundancy are different

A calculator usually gives you the statutory minimum. If your contract, policy or settlement offer is more generous, the final payment may be higher.

What is the statutory redundancy formula?

0.5 week’s pay for each full year of service under age 22
1 week’s pay for each full year of service aged 22 to 40
1.5 weeks’ pay for each full year of service aged 41 and over

Length of service is capped at 20 years, and the weekly pay figure is also capped at the statutory maximum that applies at the dismissal date.

What must employers check before relying on the number?

The calculator only works if the inputs are right. Employers need the correct start date, the employee’s date of birth, the relevant weekly pay figure and the proposed dismissal date. They also need to check whether the role is genuinely redundant and whether a fair selection and consultation exercise has taken place.

A correct payment does not fix an unfair process

Even if the statutory redundancy figure is right, an employer can still lose an unfair dismissal claim if consultation, selection or alternative employment steps were mishandled.

What payments sit alongside statutory redundancy pay?

Redundancy cases often involve more than one payment. Employers may also need to pay notice pay, accrued but untaken holiday, bonus or commission where contractually due, and sometimes enhanced redundancy pay.

Notice pay and redundancy pay are separate

Statutory redundancy pay is not the same as notice pay. Employers should also review the Notice Period Calculator, Redundancy Pay Calculator and Settlement Agreements UK where compromise terms are being discussed.

How should employers document the calculation?

Employers should save a worksheet or system screenshot showing the inputs used, the weekly pay cap applied and the final statutory figure. The dismissal letter should confirm what is being paid and when. If a settlement agreement or enhanced package applies, the breakdown should clearly separate statutory and ex-gratia elements.

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Create a payment schedule

In redundancy cases, a one-page schedule covering notice, holiday, statutory redundancy and any enhanced amount reduces dispute risk dramatically.

Redundancy pay calculator employer checklist

Confirm two years’ continuous service.
Use the employee’s age at the relevant service years.
Apply the correct statutory weekly pay cap for the dismissal date.
Separate redundancy pay from notice pay and holiday pay.
Check collective consultation duties where numbers trigger them.
Keep written records of the calculation and approval.
Link the payment process with redundancy process guidance and redundancy selection criteria.

Frequently asked questions

Free Template: Redundancy Pay Calculation Checklist

A practical worksheet for statutory redundancy, notice pay and final pay checks.

redundancy-pay-calculation-checklist.pdf

Key takeaways

A redundancy pay calculator UK page should give employers a fast statutory estimate, but the legal outcome depends on more than the number. Check service, age, capped weekly pay and the wider fairness of the process. For safer implementation, connect this page to redundancy process, notice period guidance and the Redundancy Pay Calculator.