How is my redundancy pay calculated?

Provided you have 2 years' continuous service with your employer and are an employee, you will be entitled to a statutory redundancy payment on being made redundant. This is calculated as follows:

• half a week's pay for each year of employment up to the age of 22
• one week's pay for each year of employment between ages 22 to 40
• one and a half week's pay for each year of employment over the age of 41
• there is a statutory maximum limit to a week's pay. This is set annually and is currently £400 per week. A week's pay is the amount payable for normal working under the contract of employment in force at the time of calculation.

The BIS website has a handy ready reckoner for working out your entitlement.

Please note that this is the minimum redundancy pay that you are due. Your employer may operate a more generous scheme.

You can also download these two free publications with further advice:

Dealing with the Downturn TUC/Citizens Advice leaflet in Adobe pdf format.

Facing Redundancy Know Your Rights leaflet from the TUC in Adobe pdf format.