Unsure about your compensation package in case of redundancy? With the Redundancy Pay Calculator you can calculate that figure easily.
After a redundancy, employees have the right to claim redundancy pay that will depend on what they earn, their age and the amount of years they have worked for their employer. For that, with the help of one of our Business Calculators, you will be able to obtain the exact amount that is owed to you in redundancy pay. In addition, you will be able to add the amount that you settled on with your employer if applicable, so that you know exactly what will be what you will receive as compensation.
How do you calculate your redundancy pay with a calculator?
Calculating your redundancy pay is very simple with our calculator. You just need to input the data asked for in the blank fields and click the button. With this you will automatically know how much the company owes you. The necessary fields are :
- Annual gross salary: the quantity of money you receive pre-tax during a year of employment.
the amount of payslips received during the year: you must include the number of payslips received during the year.
- The date of your first day of work: indicate the date stated on your contract when you officially started at the company
- The date of your last day of work: the day when your contract was no longer in effect.
- Amount of holiday days taken: The holiday days that you took during this calendar year. This will enable you to know if you had more or less holiday days than the valid year. If you had less then the company pays you the days that were not taken as holiday. If more then the days of holiday are deducted from your compensation package.
- Days worked per year : Include here the dates that correspond to the amount of years you have worked (in days, thus taking off holidays).
After filling in these fields you just need to click the button to calculate your compensation. You will know the amount of money the company owes you. We must take into account that the total amount indicated is the sum of your redundancy pay. But also your settlement amount and the salary of the working month in course of completion.
How do calculate the amount of days worked per year?
To take an example, in the United Kingdom, one of the factors that will influence the redundancy pay is the amount of time you have worked for your employer, and another is your age. According to the type of redundancy the employer utilises they will also have to pay more or less compensation.
- If you are 17 to 21 years old you will receive half a week’s pay for each full year you have worked
- If you are aged 22 to 40 your employer will give you one week’s pay for each full year worked from age 22. You will also receive half a week’s pay for each full year you worked before that
- If you are aged 41 or over your employer must give you 1.5 weeks pay for each full year worked from the age of 41,
Does redundancy pay fall under income tax?
Redundancy pay in the United Kingdom falls under a special tax regime. So it is tax free up to 30.000 pounds.