Statutory redundancy pay rates increase for 2017-18

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The maximum amount that can be used to calculate an employee's statutory redundancy pay increases to £489 per week from today. Calculations for statutory redundancy pay are based on an employee's weekly pay (subject to the maximum amount), length of continuous service and age:

• for every year of employment in which the employee was aged 41 or over, he or she is entitled to receive one and a half weeks' pay;
• for every year of employment in which the employee was aged between 22 and 40, he or she is entitled to receive one week's pay; and
• for each year of employment in which the employee was aged under 22, he or she is entitled to receive half a week's pay.

A maximum of 20 years' service can be used to calculate statutory redundancy pay. This means that the maximum statutory redundancy payment an employee can now receive is £14,670.