Assuming that you are an employee and meet the definition of a redundant employee then there is a set way that redundancy pay is calculated. It is based on complete years of service so for these purposes I have assumed that you have ten complete years.
Your calculation is based on your age and will be:
1.5 weeks x 10 years service x your gross weekly basic pay.
Your gross weekly sum is the lowest of your actual gross weekly basic pay or the current statutory limit on a week’s pay. The rate as at April 2015 is £475.00 per week.
The maximum you will receive is therefore 1.5 x 10 x £475.00 = £7,125.00
Some employers have a contractual or discretionary payment which may exceed this sum but this will be the minimum you are entitled to. Genuine Redundancy payments are free of tax and national insurance deductions.
