The Redundancy Pay Calculator UK is a reliable, legally compliant, and easy-to-use tool designed to help employees, employers, and HR professionals estimate statutory redundancy pay based on current UK employment laws. Redundancy is a difficult time both financially and emotionally, and understanding your legal entitlements is essential. This calculator simplifies complex employment legislation by instantly calculating estimated redundancy pay according to your age, length of continuous service, and weekly earnings, all in line with UK’s statutory guidelines.
Under the Employment Rights Act 1996, employees in the UK who have been continuously employed for at least two years may be entitled to statutory redundancy pay. The amount depends on age, years of service, and capped weekly pay limits set by the UK government, which are updated annually. The Redundancy Pay Calculator UK incorporates these official thresholds to produce accurate and up-to-date calculations that reflect government regulations.
The statutory redundancy calculation currently follows these rules:
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Half a week's pay for each full year of service under age 22
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One week's pay for each full year of service between age 22 and 40
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One and a half weeks' pay for each full year of service aged 41 and over
Additionally, statutory redundancy pay is subject to a maximum weekly pay cap and a maximum number of service years (typically up to 20 years). The tool applies these limits automatically to deliver accurate results instantly.
For employees, this tool brings clarity during uncertain times. It helps individuals understand their rights, estimate how much redundancy pay they could receive, and plan financially for their next chapter—whether that means job searching, starting a business, or transitioning into retirement.
HR professionals and employers use the calculator to ensure fair and compliant redundancy payments. It helps businesses estimate liabilities, plan workforce restructuring, and provide staff with clear redundancy statements. By automating the calculations, the tool reduces errors and ensures consistency.
Financial advisors and employment consultants benefit from accurate redundancy calculations to assist clients with financial planning, pension decisions, and debt management. The calculator helps advisors demonstrate realistic payout estimates, making it easier for clients to plan their finances after job loss.
For employees aged 50 and above, redundancy compensation can be significant due to higher weekly multipliers. The tool clarifies entitlement, helping individuals understand the financial impact of early retirement, voluntary redundancy, or severance packages.
Part-time workers, shift workers, and those on flexible pay arrangements can also use the calculator by entering their average weekly pay. The tool adjusts calculations in line with statutory rules, offering inclusive support across employment types.
The calculator also helps business owners and payroll teams during restructuring, mergers, or company closures. By providing accurate projections, it assists with budgeting and ensures legally compliant redundancy packages—reducing the risk of disputes or miscalculations.
The interface is simple, mobile-friendly, and highly intuitive. Users simply input:
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Age at time of redundancy
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Years of continuous employment
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Weekly earnings (up to the legal cap)
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Employment type (optional)
The tool then instantly provides:
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Total statutory redundancy pay
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Breakdown by age-based entitlement
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Applicable limits and pay caps
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Clear eligibility status
In summary, the Redundancy Pay Calculator UK is an essential, legally accurate, and user-friendly solution for employees, employers, advisors, and HR professionals. By simplifying statutory redundancy calculations and ensuring transparency, it promotes fairness, financial preparedness, and compliance across the UK employment landscape.
