Statutory redundancy payments ready reckoner

This ready reckoner should be used for calculating statutory redundancy payments. 

To calculate the number of weeks' statutory redundancy pay¹ due to an employee, read
off the employee's age and number of complete years' service². 

A new redundancy pay calculator is available on Liveflo, allowing you to calculate an employee's statutory redundancy pay based on the employee's age, salary and length of service. If you have an enhanced redundancy scheme, the calculator enables you to work out enhanced redundancy payments in accordance with the provisions of the Equality Act 2010. Watch a video in which Jo Stubbs, head of content on XpertHR, explains how to use the calculator. Liveflo, available as part of your XpertHR subscription, provides interactive flowcharts on employment law procedures, including redundancy, with step-by-step guidance to help you comply with the law. 

* The table starts at age 17, as it is possible for a 17 year old to have 2 years service. Compulsory school leaving age can be 15³/₄ or 15 and ⁴/₅ where a child is 16 before 1 September. 

Note for local government employers
The Redundancy Payments (Continuity of Employment in Local Government, etc) (Modification) Order 1999 modifies certain provisions of the Employment Rights Act 1996 concerning redundancy payments in their application to individuals employed by local authorities or certain other bodies, most of which are local or regional. The effect of the modifications is that an individual's service with a succession of employers is treated as continuous for the purpose of determining his or her entitlement to a redundancy payment or the amount of any such payment. 

Under the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) (Miscellaneous) Regulations 2006, regulation 5 local authorities have the power to base a week's pay for those made redundant on an amount up to the actual weekly pay of the redundant employee. This effectively means that for employees whose week's pay is above the £450 maximum, local authorities can choose to base the calculation on any sum between £450 and an actual week's earnings. 

¹ The limit on a week's pay for the purposes of calculating a statutory redundancy payment is currently £450 (from 1 February 2013 - prior limit £430). 

² Employees must have a minimum of two years' continuous service with the employer to qualify and there is a cap of 20 years' service that can be taken into account in the redundancy payment calculation. 

Note: The same figures should be used when calculating the statutory redundancy payments for employees aged 61 and above. 

Interactive guidance:
XpertHR redundancy pay calculator
UK Government redundancy pay calculator

Related quick reference items

Enhanced redundancy payments