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Employment

Redundancy Pay Calculator

If your role is being made redundant, you may be entitled to compensation. This calculator estimates redundancy pay based on your salary, years of service, and local norms.

Tell us about it

in $ USD
$1,600.00
$
6
2
12
$320.00
$500.00
$
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Estimated Buyout

$23,540.00

In plain English

After 6 years at $1,600.00 a week, with 2 severance weeks per year, 12 unused PTO days, and a $500.00 healthcare stipend, the estimated severance package is $23,540.00.

How we got there+
Daily pay rate$320.00
Base severance$19,200.00
PTO payout$3,840.00
Healthcare stipend$500.00
Total package$23,540.00

Estimates only, not legal or financial advice. Double-check figures with a qualified professional.

How we got there

— Redundancy Pay Calculator

Methodology reviewed: August 17, 2026 · Source: IRS Publication 525 — Taxable and Nontaxable Income

Is severance pay taxable?

Yes, severance is taxed as regular income. The calculator shows the gross amount. Your actual take-home pay will be less after taxes.

Is PTO payout taxed differently than severance?

Both are taxed as regular income. The calculator shows gross amounts. Your actual payout will be less after taxes and deductions.

Frequently asked questions

Q.What is redundancy pay?▾
It is compensation paid when your job is eliminated due to restructuring or downsizing. It is similar to severance and is common in the UK and other countries.
Q.How is redundancy pay calculated?▾
It is usually based on your weekly pay and years of service. The exact formula depends on your country's laws or your employment contract.
Q.Is redundancy pay the same as severance?▾
They are similar. Redundancy is used when the role is eliminated, while severance can apply to other situations. The calculation method is often the same.
Q.Am I entitled to redundancy pay by law?▾
It depends on your country and how long you have worked there. In the UK, you are entitled after 2 years. In the US, it depends on your contract.
Q.Can I negotiate a better redundancy package?▾
Yes, especially if you have a strong track record. Some employers offer enhanced redundancy terms beyond the legal minimum.

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  3. 03Severance Package Calculator→
  4. 04Early Retirement Buyout Calculator→
  5. 05PTO Payout Calculator + Severance→