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UK Redundancy Pay Calculator
Sign up to favourite this calculatorCalculate UK statutory redundancy pay from age, years of service and weekly pay. See the age-band breakdown, the weekly pay cap applied, and an optional comparison against an enhanced scheme.
Statutory redundancy pay
Redundancy weeks
12.0 weeksWeekly pay after cap
£600.00Years counted
10 of 20Tax-free amount
£7,200.00Uses 2026–27 rates, last reviewed 17 September 2026.
- Age at redundancy
- 45
- Complete years of service
- 10
- Years under 22
- 0 × 0.5 weeks = 0.0 weeks
- Years 22 to 40
- 6 × 1 week = 6.0 weeks
- Years 41 and over
- 4 × 1.5 weeks = 6.0 weeks
- Total redundancy weeks
- 12.0 weeks
- Weekly pay before cap
- £600
- Weekly pay after cap
- £600
- Formula
- 12.0 weeks × £600 = £7,200
- Redundancy pay used for tax summary
- Statutory redundancy pay
- Tax-free amount (first £30,000)
- £7,200
- Taxable amount above threshold
- £0
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Assumptions and limits
- An estimate from the numbers you entered, for guidance only. It is not financial, tax or medical advice.
- Calculator version 1, rates last reviewed 17 September 2026, last updated 25 October 2026.
- Source: GOV.UK: Redundancy pay.
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How to use this calculator
Enter age at redundancy, complete years of service and weekly gross pay. The statutory weekly pay cap is prefilled with the current rate — change it if the redundancy date falls in an earlier year with a lower cap. The result updates as you type: statutory redundancy pay, the age-band breakdown, and a tax-free/taxable split using the standard £30,000 exemption.
To compare against a more generous employer scheme, enter a figure for enhanced weeks per year of service. Leave it at 0 to see statutory redundancy pay only.
What do I need to enter?
- Age at redundancy — your age on the date employment ends, from 16 to 100.
- Years of service — completed years of continuous employment, from 0 to 50. Only whole years count, and at least 2 are needed to qualify.
- Weekly gross pay — your weekly pay before tax and deductions, up to £50,000.
- Statutory weekly pay cap — starts at £751 (England, Scotland and Wales) and can be set from £1 to £2,000. Weekly pay above it is not counted.
- Enhanced weeks per year of service — optional, 0 to 10 weeks. Enter it to compare an employer's more generous scheme; 0 shows statutory pay only.
What do the results show?
- Statutory redundancy pay — the main figure: redundancy weeks times weekly pay after the cap. It is £0 if you have under 2 complete years.
- Redundancy weeks — the weeks of pay earned from the age-band multipliers.
- Weekly pay after cap — your weekly pay, limited to the cap.
- Years counted — complete years used, out of a maximum of 20.
- Tax-free amount — the part of the redundancy pay within the £30,000 threshold. With enhanced pay entered, the tax split uses the enhanced figure.
- Summary — the years in each age band, the formula, and the enhanced-pay comparison when you enter one.
How is statutory redundancy pay calculated?
Statutory redundancy pay is redundancy weeks × capped weekly pay. Redundancy weeks come from applying an age-band multiplier to each complete year of service, using the age during that particular year — so a longer-serving employee's earlier years can fall in a younger band than their age at redundancy:
| Age during that year of service | Multiplier |
|---|---|
| Under 22 | 0.5 week’s pay per complete year of service |
| 22 to 40 | 1 week’s pay per complete year of service |
| 41 and over | 1.5 week’s pay per complete year of service |
Statutory redundancy pay = redundancy weeks × min(weekly pay, weekly pay cap)
- Redundancy weeks = (years under 22 × 0.5) + (years 22–40 × 1) + (years 41+ × 1.5)
- Only complete years of continuous service count; a partial final year is dropped
- Service is capped at 20 years — only the most recent 20 years count
- At least 2 complete years of continuous service are needed to qualify
- Weekly pay cap: £751 (England, Scotland, Wales), from 6 April 2026
Worked example. An employee is 45 at redundancy with 10 years of service and £600 weekly pay — so this job started at age 35. They had not yet turned 45 during any complete year of service, so the most recent year counts as age 44, the one before it 43, and so on back to age 35. Ages 44 down to 41 (4 years) fall in the 41-and-over band at 1.5 weeks each, and ages 40 down to 35 (6 years) fall in the 22–40 band at 1 week each — 6 weeks plus 6 weeks, for 12 redundancy weeks. Weekly pay of £600 is below the £751 cap, so the full amount counts: 12 weeks × £600 = £7,200 statutory redundancy pay. The whole amount is within the £30,000 tax-free threshold.
What this calculator does not cover
This is a planning and entitlement estimate built entirely from the figures entered and the statutory assumptions shown alongside the result. It does not cover:
- Whether a redundancy is fair, lawful, or has followed a proper process
- Notice pay, holiday pay, PILON (pay in lieu of notice), or other separate termination payments
- Employer National Insurance or pension contributions on the redundancy payment
- Northern Ireland’s separate £783 weekly pay cap
- Scotland or Wales-specific rules — the statutory formula is the same UK-wide
- Contractual notice periods, settlement agreements, or tribunal claims
- Personal tax circumstances beyond the standard £30,000 exemption
For the employer's other on-costs of employing someone — National Insurance, pension, benefits and overheads above gross salary — see the UK Cost of Employing Someone Calculator.
Disclaimer and sources
This calculator estimates UK statutory redundancy pay only. It is not legal advice, payroll software or a tribunal tool, and it does not say whether a redundancy is fair, lawful or advisable. Redundancy rules can differ for Northern Ireland's weekly pay cap. Check official GOV.UK guidance or speak to a qualified adviser before relying on this estimate.
Rates are based on official GOV.UK guidance. Rates last reviewed 17 September 2026. The weekly pay cap and tax-free threshold can change — confirm the current figures on GOV.UK before you rely on this result.
Frequently asked questions
How is statutory redundancy pay calculated?
Statutory redundancy pay is worked out from age, complete years of continuous service (capped at 20 years) and weekly pay (capped at the statutory limit, £751 for redundancies on or after 6 April 2026 in England, Scotland and Wales). Each complete year of service counts as 0.5 week’s pay under 22, 1 week’s pay from 22 to 40, and 1.5 week’s pay from 41 upward — using the age during that particular year of service, not just the age at redundancy.
What is the statutory weekly pay cap?
For redundancies on or after 6 April 2026, the weekly pay cap is £751 in England, Scotland and Wales (£783 in Northern Ireland). Only pay up to this figure counts toward statutory redundancy pay, even if actual weekly pay is higher. The cap rises most years — enter the figure that applied on the redundancy date if it was earlier.
How many years of service count toward redundancy pay?
Only complete years of continuous service count — a partial final year is dropped. Statutory redundancy pay counts a maximum of 20 years, so anyone with longer service only has their most recent 20 years counted. At least 2 complete years of continuous service are needed to qualify at all.
Is redundancy pay taxable?
The first £30,000 of a genuine redundancy payment is free of Income Tax and National Insurance. Any amount above £30,000 is taxable. This applies to the total genuine redundancy payment — statutory plus any enhanced or contractual redundancy pay combined — and does not include notice pay, holiday pay or other separately taxed items.
What is enhanced redundancy pay?
Enhanced (or contractual) redundancy pay is a more generous scheme an employer chooses to offer on top of, or instead of, the statutory minimum — for example, a fixed number of weeks’ pay per year of service with no statutory caps applied. This calculator compares an enhanced figure against the statutory result when a non-zero enhanced rate is entered.
What is the maximum statutory redundancy pay?
The maximum is reached at 20 years of service, all at age 41 or over, on pay at or above the cap: 20 years × 1.5 weeks × £751 = £22,530 for redundancies on or after 6 April 2026 in England, Scotland and Wales.
Last updated 25 October 2026. Rates last reviewed 17 September 2026. Source: GOV.UK: Redundancy pay.