1. What is UK Statutory Redundancy Pay?

UK statutory redundancy pay is a legal entitlement for employees who have been working for an employer for at least 2 years and are being made redundant. The amount is based on age, length of service, and weekly pay.

2. How Does the Calculator Work?

The calculator uses the UK statutory redundancy pay formula:

Where:

• \( Years Under 22 \) — Years worked while under age 22
• \( Years 22-40 \) — Years worked between ages 22 and 40
• \( Years Over 41 \) — Years worked while age 41 or older
• \( Weekly Pay \) — Gross weekly pay (capped at statutory maximum)

Explanation: The formula applies different multipliers based on age brackets to calculate the total redundancy entitlement.

3. Importance of Redundancy Pay Calculation

Details: Accurate redundancy pay calculation ensures compliance with UK employment law and helps both employers and employees understand their rights and obligations during redundancy situations.

4. Using the Calculator

Tips: Enter years of service in each age category and your weekly pay. Use decimal values for partial years (e.g., 2.5 years). All values must be non-negative.

5. Frequently Asked Questions (FAQ)

Q1: Who is eligible for statutory redundancy pay?
A: Employees with at least 2 years of continuous service who are being made redundant.

Q2: Is there a maximum weekly pay amount?
A: Yes, there's a statutory cap on weekly pay that is updated annually. Check the current limit on the UK government website.

Q3: How are partial years calculated?
A: Partial years of service should be calculated in complete months and converted to decimal years.

Q4: Are there any exemptions?
A: Some categories of workers may have different entitlements, such as those in certain public sector roles or with specific contract terms.

Q5: Is redundancy pay taxable?
A: The first £30,000 of redundancy pay is tax-free in the UK. Amounts above this threshold are subject to income tax.