How to calculate statutory redundancy pay?

Step 1: Determine Length of Service Identify the total number of complete years the employee has been continuously employed by the company.

Step 2: Age Factor Apply the appropriate age factor based on the employee’s age at the time of redundancy.

Step 3: Weekly Gross Pay Determine the employee’s weekly gross pay, considering the statutory cap.

Step 4: Calculate Statutory Redundancy Pay Multiply the length of service by the age factor and the weekly gross pay. The final figure represents the statutory redundancy pay entitlement.

Example Calculation

Let’s consider an employee aged 35, with 5 years of continuous service, and a weekly gross pay of £500.

Length of Service Factor: 5 years
Age Factor (for 35-year-old): 1
Weekly Gross Pay: £500

Calculation: 5 years x 1.0 x £500 = £2,500

If you are doing this calculation for multiple employees then I recommend using my redundancy calculator