Redundancy pay is based on your earnings before tax (called gross pay). For each full year you’ve worked for your employer, you get: up to age 22 – half a week’s pay.
What money am I entitled to when made redundant?
If you are an employee with at least two years’ service in your job, you are entitled to a statutory redundancy payment. The law sets a minimum payment. This is normally paid by your employer, but the State will pay if your employer has gone bust.
What’s the maximum pay you can get if you are made redundant?
If you were made redundant on or after 6 April 2020, your weekly pay is capped at £538 and the maximum statutory redundancy pay you can get is £16,140. If you were made redundant before 6 April 2020, these amounts will be lower. Calculate your redundancy pay. Redundancy pay (including any severance pay) under £30,000 is not taxable.
Do you have to pay tax on redundancy pay?
Redundancy pay (including any severance pay) under £30,000 is not taxable. Your employer will deduct tax and National Insurance contributions from any wages or holiday pay they owe you. You’re not entitled to statutory redundancy pay if: your employer offers you suitable alternative work which you refuse without good reason
What to do if you have been made redundant in the UK?
3. Claim for redundancy pay (and other money owed) (RP1) Complete the online application. Completing the online form takes between 25 and 45 minutes. Once you start, you cannot save your application and come back to it later. If you cannot complete the application in full, you will need to start a new application.
How to apply for redundancy pay if your employer is insolvent?
Find out about: If your employer is insolvent, find out how to apply for redundancy pay, holiday pay, statutory notice pay and any other money you’re owed by your employer from the Insolvency Service .
