Calculate your statutory redundancy pay based on age, years of service, and weekly pay with the current GBP 751 weekly cap.
This calculator estimates statutory redundancy pay only. Your employer may offer enhanced redundancy terms. Use gov.uk/calculate-your-redundancy-pay for the official calculation. Tax treatment may vary by circumstance.
If you are facing redundancy, understanding your statutory redundancy pay entitlement is essential for financial planning. Statutory redundancy pay is a legal right for employees who have been continuously employed for two or more years and are being dismissed due to redundancy. The amount you receive depends on three factors: your age, your length of service, and your weekly pay (subject to a cap). The UK government sets the weekly pay cap and other parameters each year. For the 2026-27 tax year, the weekly pay cap is GBP 751, and the maximum years of service counted is 20. This calculator helps you estimate your statutory redundancy entitlement and understand the tax implications of your payment.
To calculate your statutory redundancy pay: 1. Enter your current age. Your age determines the multiplier applied to each year of service. Workers aged 41 and over receive a higher rate than those under 41. 2. Enter your years of continuous service with your current employer. Only complete years count, and the maximum used in the calculation is 20 years. 3. Enter your average weekly pay before tax. If your weekly pay exceeds GBP 751, the calculator automatically caps it at GBP 751 for statutory purposes. If your pay varies, use an average over the 12 weeks before your notice period. 4. Optionally enter your leaving date for your own reference. 5. Review your results, which show the total statutory redundancy pay, the number of weeks calculated, the capped weekly pay used, and a breakdown of tax-free and taxable amounts.
Statutory redundancy pay is calculated by working backwards from your current age through each year of service: For each complete year of service where you were aged under 22, you receive half a week's pay. For each year where you were aged 22 to 40, you receive one week's pay. For each year where you were aged 41 or over, you receive one and a half weeks' pay. Your weekly pay is capped at GBP 751 for the 2026-27 tax year. If your actual weekly pay is below this cap, your actual pay is used. A maximum of 20 years of continuous service is counted. For example, an employee aged 45 with 10 years of service and weekly pay of GBP 600 would receive: 5 years at age 41-45 (1.5 weeks each) plus 5 years at age 36-40 (1 week each) = 7.5 + 5 = 12.5 weeks. Total pay: 12.5 x GBP 600 = GBP 7,500. The first GBP 30,000 of statutory redundancy pay is free from income tax and National Insurance. Any amount above GBP 30,000 is taxable as earnings.
This calculator provides the statutory minimum redundancy pay. Many employers offer enhanced redundancy packages that exceed the statutory minimum. Check your employment contract and company policy for details. You must have been continuously employed for at least 2 years to qualify for statutory redundancy pay. Certain categories of workers, such as agency workers and apprentices who started before October 2023, may have different rules. If you believe you have been unfairly selected for redundancy or your employer has not followed proper consultation procedures, you can seek advice from ACAS (acas.org.uk) or contact your trade union representative. The gov.uk redundancy calculator at gov.uk/calculate-your-redundancy-pay provides the official government calculation tool.