Redundancy Pay
The Real Calculation
The short answer
Statutory redundancy pay is age-banded — more per year of service the older you are — capped at 20 years, and capped at a statutory weekly pay ceiling. The first £30,000 of what you receive is generally tax-free. Most forces also run their own enhanced schemes on top of the statutory minimum, so the real number is often higher than the formula alone suggests.
The statutory formula
Statutory redundancy pay is built from three things: your age in each year of service, your length of continuous service (capped at 20 years), and your weekly pay (capped at the statutory maximum). For each full year of service, you get:
Age Under 22
0.5 week's pay
per full year of service
Age 22 to 40
1 week's pay
per full year of service
Age 41 and over
1.5 weeks' pay
per full year of service
Only your most recent 20 years of service count, and each year is banded by the age you were during that specific year — so a long career can mix all three bands. Your weekly pay is also capped at the statutory maximum, which is reviewed and uprated periodically; check the current figure at gov.uk rather than relying on an old number, especially if your salary is well above the typical range.
The first £30,000 is usually tax-free
This is the detail most redundancy calculators skip, and it genuinely changes what actually lands in your account. Under the UK's termination payment tax rules, the first £30,000 of a genuine termination payment — which includes statutory redundancy pay, and most non-contractual severance paid alongside it — is free of income tax, and that same portion sits outside employee National Insurance too.
Above £30,000, the rules get genuinely more complex — and some elements of a package, like pay in lieu of notice, can be taxed differently regardless of the £30,000 figure. If your total package is large, or includes several different elements, it's worth getting proper advice (your union, Federation-equivalent staff association, or an accountant) rather than assuming a simple net figure.
Notice pay is separate — and adds on top
Redundancy pay and notice pay are two different entitlements, and both are usually owed together. Statutory minimum notice is one week for each full year of continuous employment, up to a maximum of 12 weeks once you've completed 12 years' service. If your contract specifies a longer notice period than the statutory minimum, the longer contractual period normally applies instead.
In practice, this means your actual leaving package is very rarely just the statutory redundancy figure on its own — it's redundancy pay, plus notice pay (or pay in lieu of notice), plus, in many forces, an enhanced contractual top-up on top of the statutory minimum.
Check your own force's enhanced scheme
The statutory formula above is a floor, not a ceiling. Many forces operate their own contractual redundancy schemes that pay more generously than the statutory minimum — sometimes significantly more, particularly for voluntary redundancy. This genuinely varies force by force and isn't guaranteed, so the only way to know your real number is to check your own force's HR policy or ask your union or staff association directly, rather than assuming the statutory calculation is final.
Paid tool · Police Staff mode
Calculate your real redundancy figure
Switch the salary calculator to Police Staff, enter your age and years of service, and the full report estimates your statutory redundancy pay net of the £30,000 tax exemption.
Common questions
How is police staff redundancy pay actually calculated?
Statutory redundancy pay uses an age-banded formula: half a week's pay for each full year of service under age 22, one week's pay for each full year between 22 and 40, and one and a half weeks' pay for each full year at 41 or older. Service is capped at 20 years, and your weekly pay is capped at the statutory maximum, which is reviewed and uprated periodically — check the current figure at gov.uk before relying on an exact number.
Is redundancy pay taxed?
The first £30,000 of a genuine termination payment — which includes statutory redundancy pay and most non-contractual severance paid alongside it — is generally free of income tax, and that same portion is also outside employee National Insurance. Above £30,000, tax rules get genuinely more complex (and some elements, like pay in lieu of notice, can be taxed differently regardless of the £30,000 figure), so get advice from your union, an accountant or HMRC's own guidance if your total package is large.
Do I get notice pay as well as redundancy pay?
Yes — they're separate entitlements. Statutory minimum notice is one week for each full year of continuous employment, up to a maximum of 12 weeks once you've completed 12 years' service. Many police staff contracts specify a longer contractual notice period than the statutory minimum, in which case the longer period usually applies.
Do I need two years' service to get redundancy pay?
Yes. Statutory redundancy pay only applies once you have at least two years' continuous service with your force. Below that, a genuine redundancy dismissal can still be lawful, but there's no statutory redundancy payment attached to it.
Will my force pay more than the statutory minimum?
Possibly — many forces run their own enhanced, contractual redundancy schemes that pay more generously than the statutory formula, particularly for voluntary redundancy. This varies by force and isn't guaranteed, so check your own force's HR policy or ask your union or staff association what actually applies to you, rather than assuming the statutory figure is the final number.
Does redundancy pay affect my LGPS pension?
Redundancy pay itself is a separate lump sum, not pensionable pay, so it doesn't directly change your LGPS pension calculation. But redundancy ending your employment does end your LGPS membership at that point, which affects your total pensionable service — see our LGPS guide for how the pension itself works.