Statutory Redundancy Payment

Calculation of the Statutory Redundancy Payment

The Statutory Redundancy Payment SRP is calculated in exactly the same way as the basic award for unfair dismissal in accordance with the formula below (s.162 ERA):

Age Factor

The employee’s age factor is as follows:

1½ weeks’ pay For each complete year of service in which the employee was 41 or over

1 week’s pay For each compete year of service in which the employee was between the ages of 22 and 41

½ week’s pay For each complete year of service in which the employee was below the age of 22

Note that you never use the employee’s actual age in the calculation; just the employee’s age factor.  

Service

Service is calculated in complete years backwards from the EDT to a maximum of 20 years.

 Weeks’ Pays

The week’s pay is the actual gross weekly pay up to a maximum which is reviewed annually in April:

• The weekly maximum for 2020/22 is £544. 

• The weekly maximum for 2022/23 is £643. 

If the employee’s actual weekly pay is less than the statutory maximum, the actual weekly pay should be used in the calculation.