Statutory Redundancy pay increased from 6th April 2015 from 464.00 per week to 475.00 per week. If an employees weekly salary is lower than the statutory amount, then the lower amount is payable. Statutory Redundancy pay is tax free up to 30,000. Redundancy pay over 30,000 is subject to tax at basic rate currently 20% and no Employees or Employers NIC is payable. To qualify an employee must have been continuously employed for a minimum of two complete years.
The table below shows how many weeks redundancy an employee would be entitled to based on age and length of employment. If the employees earnings vary each week, an average of the last 12-week period leading up to the redundancy is used. Statutory Redundancy is capped at 20 years service.
Statutory Redundancy Table
17* - 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 15 3/4 or 15 4/5 where a child is 16 before 1st September.
61* - The table stops at age 61 because for employees aged 61 and over, the payment remains the same.
The number in the grid indicates the number of weeks Statutory Redundancy due, based on age and length of service i.e. if you were 44 and worked for 5 complete years you would be due 6.5 weeks Statutory Redundancy 6.5 x 464.00 = 3,016.