About the UK Redundancy Pay Calculator
This UK redundancy pay calculator works out the statutory minimum redundancy payment your employer must make if you are made redundant after at least two years of continuous employment. It counts back from your age at redundancy and gives half a week’s pay for each full year worked under 22, one week’s pay for each year aged 22 to 40, and one and a half weeks’ pay for each year aged 41 or over.
Weekly pay is capped at £751 for redundancies on or after 6 April 2026 and no more than 20 years of service count, so the most anyone can receive in statutory redundancy pay is £22,530. The calculator shows the number of weeks’ pay you have earned, a year-by-year breakdown and your final statutory figure.
Use it to check a redundancy offer, plan a negotiation or compare an enhanced package with the legal minimum. Many employers pay more under the contract. The figures apply to England, Scotland and Wales; Northern Ireland sets its own weekly cap. Statutory redundancy pay, together with other qualifying termination payments, is tax-free up to £30,000.
With the default inputs, the statutory redundancy pay is £10,514.00. Change any value above to recalculate instantly.
How to use the uk redundancy pay calculator
- 1Enter your age on the date you are made redundant.
- 2Enter your full years of continuous service with the employer.
- 3Enter your average gross weekly pay.
- 4Optionally enter your employer’s offer to compare it with the statutory minimum.
- 5Read your statutory pay and the year-by-year breakdown.
Formula and method
Statutory redundancy pay counts backwards from the redundancy date, one full year of continuous service at a time, for at most 20 years. Each year earns half a week’s pay if you were under 22 throughout it, one week’s pay if you were 22 to 40, and one and a half weeks’ pay if you were 41 or older. The total number of weeks is then multiplied by your weekly pay.
Weekly pay is your average gross pay over the 12 weeks before notice was given and is capped — £751 for redundancies on or after 6 April 2026. With the cap and the 20-year limit, the maximum is 30 weeks × £751 = £22,530. You must have at least two years of continuous employment to qualify.
- Weekly pay
- Average gross weekly pay over 12 weeks, capped at £751
- Multiplier
- Weeks’ pay earned for each full year of service, by age
Worked examples
Age 45 with 12 years’ service on £800 a week
Counting back, the four years aged 41–44 earn 1.5 weeks each (6 weeks) and the eight years aged 33–40 earn 1 week each (8 weeks), 14 weeks in total. Weekly pay is capped at £751, so statutory pay is 14 × £751 = £10,514.
Age 30 with 10 years’ service on £500 a week
The eight years aged 22–29 earn 1 week each and the two years aged 20 and 21 earn half a week each, 9 weeks in total. At £500 a week (below the cap) that is £4,500.
Maximum: age 62 with 25 years’ service
Only 20 years count, all of them aged 41 or over, so 20 × 1.5 = 30 weeks. At the £751 cap that is the statutory maximum of £22,530; a £30,000 offer is £7,470 more.
Less than two years’ service
Statutory redundancy pay requires at least two years of continuous employment, so someone with one year gets nothing under the statutory scheme (a contract may still give something).
Frequently asked questions
How is statutory redundancy pay calculated?+
You get half a week’s pay for each full year of service under 22, one week’s pay for each year from 22 to 40, and one and a half weeks’ pay for each year aged 41 or over, counting back up to 20 years.
What is the redundancy pay cap for 2026?+
For redundancies on or after 6 April 2026, weekly pay is capped at £751 and the maximum statutory redundancy payment is £22,530 (30 weeks at the cap).
Is redundancy pay taxable?+
Statutory redundancy pay is not taxed. Redundancy and other qualifying termination payments are tax-free up to £30,000 in total; anything above is taxed. Pay in lieu of notice and holiday pay are taxed as earnings.
Do I qualify for redundancy pay with less than 2 years’ service?+
No, the statutory scheme needs two years of continuous employment. Your contract or company policy may still give a redundancy payment, and you are still entitled to notice pay and accrued holiday.
What counts as a week’s pay?+
It is your average gross weekly pay over the 12 weeks before you were given notice. If your hours or pay vary, the average over those 12 weeks is used, subject to the weekly cap.
Results are general estimates and not legal advice. Laws vary by jurisdiction — consult a qualified attorney.