Statutory Redundancy Pay (SRP)
In the UK, if you have been an employee for at least 2 years, you are legally entitled to Statutory Redundancy Pay. The amount depends on your age and length of service.
The UK Age-Based Multiplier
22 to 40: 1 week's pay per year
41 and Over: 1.5 weeks' pay per year
Consultation & Notice Rights
Employers must follow a fair redundancy process, which includes a consultation period. If they are making 20+ people redundant, there are strict collective consultation timelines (30 to 45 days).
Tax-Free Thresholds
A major benefit in the UK is that the first £30,000 of redundancy pay is usually tax-free. Any amount above this threshold is subject to standard Income Tax and National Insurance contributions.
Pay in Lieu of Notice (PILON)
If your employer wants you to leave immediately, they may pay you "in lieu of notice." This is separate from your redundancy pay and is fully taxable as regular earnings.
Authentic FAQ
What is the maximum weekly pay cap?
Can I lose my redundancy pay?
1 Enter Your Employment Details
Basic Salary only — exclude allowances
Decimals allowed (e.g. 3.5 years)
Required for UK and age-based calculations
Legal Basis & Formula
Editorial Standards & Formula Verification Policy
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