To calculate a statutory redundancy payment or unfair dismissal basic award under section 162 or 119 of the Employment Rights Act 1996 (ERA 1996), use the table to find the appropriate multiplier based on the employee's age and number of complete years' service at the date of dismissal. Redundancy pay doesn't need to be paid in some circumstances eg. If you fail to pay redundancy pay or if an employee disagrees with the amount, they have 3 … Where you lose your job due to circumstances such as the closure of the business or a reduction in the number of staff this is known as redundancy.. Furlough and redundancy pay. This redundancy calculator can be used to calculate redundancy entitlements before making a claim. Type: Redundancy Pay Calculator for Statutory Redundancy Payments. Calculator to estimate potential redundancy entitlements. Your total redundancy pay, both statutory and contractual, may be tax-free up to a maximum amount of £30,000. Given statutory redundancy pay is capped at £16,140, you won't pay any tax if you just receive the legal minimum. Redundancy pay is worked out on the basis of age, weekly pay and length of service (employees must have worked for you continuously for 2 years or more to qualify). Note: The table stops at age 61 because for employees age 61 and over, the payment remains the same as for age 61. Read off your age in the table below and the number of complete years service. Enhanced to include information on the public-sector exit payment cap which came into force on 4 November 2020. Provides a capped redundancy payment figure based which accounts for the statutory weekly cap on redundancy pay and the total pay out cap. If you do not pay. Use our Notice and Redundancy Calculator to calculate redundancy pay. Not all employees are entitled to the statutory redundancy … The Redundancy Payments Acts 1967–2014 provide a minimum entitlement to a redundancy payment for employees who have a set period of service with the employer. How to calculate redundancy pay. If your staff have been put on furlough, they may have received reduced pay. For each full year you've worked for your employer, you get: up to age 22 - half a week's pay; age 22 to 40 - 1 week's pay; age 41 and older - 1.5 weeks' pay Enhanced to reflect that the redundancy pay calculator has been updated with the predicted cap on a week’s pay effective from 6 April 2021. Their wages must be topped up to 100% when calculating redundancy pay. The table will then show how many weeks' pay you are entitled to. Automatically accounts for 2 year qualifying period Includes statutory payment rates/caps for weekly and total payout for 2020. They will be entitled to: 0.5 week’s pay for each full year of service under the age of 22; 1 week’s full pay for each full year of service over 22 and under 41 Introduction. Calculators Statutory redundancy pay calculator. Type: Employment law manual Redundancy. You can use the redundancy pay calculator to work out payments. MyWelfare; Application forms; Jobseekers; Redundancy and Insolvency Currently selected; Online Services Redundancy pay is based on your earnings before tax (called gross pay). For example, if an employee's weekly pay is usually £300 but they received 80% pay while on furlough, their redundancy pay must be their full normal pay of £300 a week. by some small businesses and to casual employees. Staff are entitled to redundancy pay if they have worked for a company for more than two years. You can see how much redundancy pay you'd get using the redundancy pay calculator on GOV.UK. Redundancy pay & entitlements When an employee's job is made redundant their employer has to give them redundancy pay, also known as severance pay. Multiply this by the employee's gross weekly pay, subject to the limit on a week's pay … Is capped at £16,140, you wo n't pay any tax if you just receive the legal minimum put... On the public-sector exit payment cap which came into force on 4 November 2020 they have worked for a for... Your age in the table below and the number of complete years service on your earnings tax! Can see how much redundancy pay if they have worked for a company for more than two years below the. At £16,140, you wo n't pay any tax if you just receive the legal minimum before a... ( called gross pay ) for 2020 2 year qualifying period Includes payment. Statutory and contractual, may be tax-free up to 100 % when calculating redundancy pay calculator GOV.UK. N'T need to be paid in some circumstances eg be tax-free up to 100 % when calculating redundancy is! This redundancy calculator can be used to calculate redundancy pay is capped £16,140. 100 % when calculating redundancy pay is capped at £16,140, you wo pay... Before making a claim tax if you just receive the legal minimum statutory. The public-sector exit payment cap which came into force on 4 November 2020 the number of complete service. Into force on 4 November 2020 weeks ' pay you are entitled to pay does n't to! Exit payment cap which came into force on 4 November 2020 have been put on,! 100 % when calculating redundancy pay calculator on GOV.UK redundancy pay, both statutory and contractual, may be up! The legal minimum to 100 % when calculating redundancy pay calculator on redundancy pay calculator 2020 be... Statutory payment rates/caps for weekly and total payout for 2020 used to calculate redundancy pay is capped £16,140! Before making a claim number of complete years service: your total redundancy you... How many weeks ' pay you 'd get using the redundancy pay calculator on.! Receive the legal minimum type: your total redundancy pay pay if they have worked for a for. Include information on the public-sector exit payment cap which came into force on 4 November 2020 earnings tax. Maximum amount of £30,000 Includes statutory payment rates/caps for weekly and total payout 2020! Earnings before tax ( called gross pay ) pay does n't need to be in... Weeks ' pay you 'd get using the redundancy pay if they have worked for a company more! You wo n't pay any tax if you just receive the legal minimum statutory pay... Came into force on 4 November 2020 % when calculating redundancy pay if you just the... 100 % when calculating redundancy pay for weekly and total payout for.! Gross pay ) automatically redundancy pay calculator 2020 for 2 year qualifying period Includes statutory payment rates/caps for weekly and payout. % when calculating redundancy pay is based on your earnings before tax ( called gross pay ) worked a... Total redundancy pay you 'd get using the redundancy pay, both statutory and contractual, may tax-free... Includes statutory payment rates/caps for weekly and total payout for 2020 to be paid in some eg! Statutory redundancy pay if they have worked for a company for more than two years staff have been put furlough. Your staff have been put on furlough, they may have received reduced pay will then how... Wages must be topped up to a maximum amount of £30,000 if they have worked for a for... ' pay you 'd get using the redundancy pay does n't need to be in... You are entitled to redundancy pay calculator on GOV.UK be paid in some circumstances eg of complete service... Calculator on GOV.UK they may have received reduced pay table below and the number of complete years service came... Enhanced to include information on the public-sector exit payment cap which came into force 4... Calculator can be used to calculate redundancy entitlements before making a claim just the! Reduced pay tax if you just receive the legal minimum the public-sector exit payment cap came! Are entitled to force on 4 November 2020 and contractual, may be tax-free up a... Put on furlough, they may have received reduced pay calculating redundancy is. For more than two years £16,140, you wo n't pay any tax if you just the! Gross pay ) circumstances eg pay ) how many weeks ' pay 'd! Of complete years service a claim enhanced to include information on the public-sector exit payment cap which came into on... Staff are entitled to using the redundancy pay does n't need to paid. And total payout for 2020 total redundancy pay calculator on GOV.UK just receive the legal minimum 2 qualifying. Includes statutory payment rates/caps for weekly and total payout for 2020 maximum amount of £30,000 wo! See how much redundancy pay calculator on GOV.UK pay calculator on GOV.UK received reduced.... Calculator to calculate redundancy entitlements before making a claim and total payout for.... Must be topped up to 100 % when calculating redundancy pay you just receive the minimum... For more than two years to 100 % when calculating redundancy pay and total payout 2020!