How the calculator works
Statutory redundancy pay is half a week's pay for each full year you were under 22, one week for each year from 22 to 40, and one and a half weeks for each year from 41. Only the last 20 years count and a week's pay is capped at £751, so the maximum is £22,530. You need two years' service.
Notice and holiday pay are worked out from your yearly pay and taxed as earnings.
Compensation is the number of months you enter, multiplied by your monthly pay.
Tax. Redundancy pay and compensation are added together. The first £30,000 is tax-free and anything above is taxed at the rate you choose, along with your notice and holiday pay. See tax on settlement agreements.
What it does not include
- National Insurance on notice and holiday pay.
- Bonus, commission, shares and pension contributions. See bonus, shares and pension.
- Enhanced redundancy terms in your contract or a company policy.
- The value of your claims. The calculator tells you what an offer adds up to, not whether it is enough. For that, see how much should I get?
Checking an offer against the result
If the offer in front of you is lower than the "what you are owed anyway" parts of the result, something is missing, most often notice pay calculated at the statutory minimum when your contract gives you more. If the compensation line is nil, you are being asked to give up your claims for nothing. Either point is worth raising in negotiation.
Frequently asked questions
Is this calculator accurate?
It applies the statutory redundancy formula, the £751 weekly cap and the £30,000 exemption exactly. The tax figure is an estimate at the rate you choose. It cannot tell you what your claims are worth, which is what a solicitor assesses.
How many months' compensation should I enter?
Start with your employer's offer. Then try the ranges in how much should I get? to see what a stronger offer would look like.
Why is my notice pay taxed?
Since April 2018 pay for notice you do not work is taxed as earnings, even if your contract has no pay in lieu clause. See notice pay and PILON.
Does the calculator work for Northern Ireland?
No. Northern Ireland has different limits, including a higher cap on a week's pay.
Sources
About this guide. This page is general information, not legal advice, and reflects the law and published government plans on the date shown above. Frederick George is a legal referral service, not a law firm. For advice on your own circumstances we will introduce you to an SRA-regulated solicitor.