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Our Redundancy Calculator Explained
Our calculator combines a range of variables to give you an accurate estimate of the monies you could be entitled.
- Calculates redundancy pay
- Calculates outstanding holiday pay
- Calculates outstanding notice pay
- Calculates arrears of wages
- Combines all values to give your estimated redundancy payment
Depending on your age you’ll be entitled to between 0.5 and 1.5 weeks pay for each full year worked.
- 1 Full years work under 22 years old = 0.5 week’s pay
- 1 Full years work between 22 & 41 years old = 1 week’s pay
- 1 Full years work over 41 years old = 1.5 week’s pay
For residents of England, Scotland & Wales redundancy pay is capped at £479 per week, if you reside in Northern Ireland redundancy pay is capped at £500. The length of service for which you receive redundancy pay is capped at 20 years. Any years of service over the 20-year cap are not included in the calculation.
This therefore means that the maximum amount of statutory redundancy pay that could be claimed is £14,370 (£15,000 in Northern Ireland).
N.B. Your company may also have a redundancy scheme, which could mean you’re entitled to more money. Our calculation does not include any additional redundancy schemes.
Similarly to redundancy pay notice pay is also capped at £479 (£500 in Northern Ireland) per week. You qualify for 1 week of notice pay per full year of service.
The government then deducts your estimated Jobseekers Allowance from the total. This is generally £73.10 per week and is deducted regardless of whether you claimed your allowance or not. Tax is also deducted from your notice pay at 20%.
You could be also be entitled to claim holiday pay if you have any unused holidays. We calculate your holiday pay based on the assumption that you work 5 days a week. If you work fewer days per week you could be entitled to more. Your daily rate is calculated from your salary and is multiplied by how many days you’re owed. 20% tax is deducted from your holiday pay.
Arrears of wages
If upon being made redundant you were owed any wages we can also add this to your rps payment estimate. We calculate the amount owed by dividing your annual salary into weekly payments and multiplying that amount by the number of weeks owed. The government taxes any arrears of wages at 20%, which is deducted in our calculation.