How is redundancy pay calculated?
Redundancy pay is based on: • the employee’s age • how long the employee has worked for you continuously after reaching the age of 18 – up to a maximum of 20 years • the employee’s weekly pay – up to a limit which is adjusted each year in line with the retail prices index The maximum amount of a week’s pay that may be taken into account for statutory redundancy payments purposes is £270 for redundancies that occur before 31 January 2005, with an overall maximum statutory payment of £8,100. From 1 February 2005 the weekly maximum increases to £280, and the overall maximum payment to £8,400. To receive an email about this change when more information is available, sign up for our email alert service at the bottom of this page. Calculate how much redundancy pay is due on the DTI website. Different laws govern Northern Ireland. For information call the Northern Ireland Redundancy Payments Helpline on Tel 0800 585 811.
