How to calculate redundancy payment

Written by soren bagley
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How to calculate redundancy payment
Redundancy payment calculations are based on how much an employee got paid and for how long. (Paying Bills image by ne_fall_photos from

A redundancy payment is pay given to a former employee in the United Kingdom who lost his job due to company reorganisation, mechanisation or similar cause. The amount of a redundancy payment is usually based on three factors. The first factor is the rate of pay that the employee received while he was still working for the company; the second factor is the length of time that the employee worked for the organisation; and the third factor is the age of the employee.

Skill level:
Moderately Easy


  1. 1

    Gather the necessary information. You will need to know how many years you worked for the company, how much money you got paid every week and how old you were when you were laid off.

  2. 2

    Click on the redundancy pay table located in the resources section of this article. A new web page should appear.

  3. 3

    Use the table to determine how many weeks of pay you are entitled to based on your age and the number of years that you worked for the company.

  4. 4

    Multiply the number of weeks of pay that you are entitled to by the weekly pay you received while working for the company. The result is the amount of redundancy pay you will receive. For example, if you were entitled to two weeks of pay and you made 300 pounds sterling a week, you would multiply 300 by two to get a redundancy payment amount of 600 pounds sterling.

Tips and warnings

  • The weekly amount of income that you can claim for a redundancy payment is currently capped at 380 pounds sterling.

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