Pro Rata Redundancy Calculator
Calculate redundancy pay for part-time workers
About This Tool
The Redundancy Pay Calculator helps UK employees calculate their statutory redundancy payment. If you've been made redundant and worked for your employer for at least 2 years, you're entitled to statutory redundancy pay.
Statutory redundancy pay is based on your age, length of service, and weekly pay. This calculator uses the current UK rates and limits to give you an accurate estimate of what you should receive.
How It Works
How to Use This Calculator
- Enter your date of birth - Your age affects the calculation rate.
- Enter your start date - When you started working for this employer.
- Enter your redundancy date - The date your employment ends.
- Enter your weekly pay - Your gross weekly pay before tax (capped at £700 for 2024).
- Click Calculate - See your statutory redundancy entitlement.
The calculator shows your total payment and breaks down how it's calculated.
Formula
Redundancy Pay Formula
Statutory redundancy is calculated based on:
- Under 22: 0.5 week's pay per year of service
- 22-40: 1 week's pay per year of service
- 41 and over: 1.5 weeks' pay per year of service
Maximum limits (2024): Weekly pay cap £700, Maximum years counted 20, Maximum total £21,000.
Examples
Examples
Example 1: Young Worker
- Age: 25, Service: 4 years, Weekly pay: £500
- 2 years under 22: 2 x 0.5 = 1 week
- 2 years 22-40: 2 x 1 = 2 weeks
- Total: 3 weeks x £500 = £1,500
Example 2: Mid-Career
- Age: 45, Service: 10 years, Weekly pay: £600
- 5 years 22-40: 5 x 1 = 5 weeks
- 5 years 41+: 5 x 1.5 = 7.5 weeks
- Total: 12.5 weeks x £600 = £7,500
Example 3: Long Service
- Age: 55, Service: 25 years, Weekly pay: £800 (capped at £700)
- Only 20 years count (maximum)
- 20 years at 41+: 20 x 1.5 = 30 weeks
- Total: 30 weeks x £700 = £21,000 (maximum)
Frequently Asked Questions
How is statutory redundancy pay calculated?
UK statutory redundancy: 0.5 week's pay per year of service (age under 22), 1 week per year (age 22-40), 1.5 weeks per year (age 41+). Weekly pay is capped at £643 (2023/24). Maximum 20 years of service count.
How does pro rata apply to redundancy for part-time workers?
Part-time workers receive redundancy based on their actual weekly pay, not the full-time equivalent. If you earn £300/week part-time with 10 years service at age 35: 10 × £300 = £3,000 statutory redundancy.
What counts as a complete year of service for redundancy?
Only complete years count for statutory redundancy. 4 years and 11 months counts as 4 years. Service starts from your first day of employment, including any probation period. The calculator rounds down to complete years.
Is redundancy pay taxable?
In the UK, the first £30,000 of redundancy pay (statutory and contractual combined) is tax-free. Amounts above £30,000 are taxed as income. Statutory redundancy pay alone rarely exceeds this threshold.
What is enhanced redundancy pay?
Some employers offer enhanced redundancy above the statutory minimum, often 1-4 weeks per year of service at actual salary (uncapped). The calculator lets you enter custom multipliers and weekly pay amounts for enhanced calculations.
Disclaimer
Disclaimer: This calculator provides estimates based on the information you enter and is intended for general guidance only. It does not constitute professional employment or financial advice. For specific queries about your redundancy entitlement, please consult your employer, HR department, or contact ACAS for free, impartial advice. Redundancy pay rates and caps may change; always verify current rates with official sources such as GOV.UK.
💡 Tips
Tips
- Tax-free - Statutory redundancy pay up to £30,000 is tax-free
- Notice period - You're also entitled to your notice period pay
- Enhanced packages - Many employers offer more than statutory minimum
- Continuous service - Breaks in employment may affect your entitlement
- Appeal rights - You can appeal if you believe the calculation is wrong