UK Statutory Redundancy Pay Calculator
Use this UK redundancy pay calculator to work out your statutory redundancy entitlement from your age, gross weekly pay and years of service. It applies the official 0.5 / 1 / 1.5 week age bands, the 20-year service limit and the statutory weekly pay cap.
⚠️ Estimate only — see the disclaimer.
Last updated:
Calculate your statutory redundancy pay
Enter your details and select Calculate to see your statutory entitlement.
What this calculator does
Statutory redundancy pay is a legal minimum that UK employers must pay when they make qualifying employees redundant. The amount depends on three things: your age across your years of service, your length of service, and a capped weekly pay. This calculator applies the official method used by GOV.UK, counting each year of service in the correct age band, so you can quickly see what you are entitled to.
It's helpful whether you've just been told your role is at risk, you're checking an employer's offer, or you're planning ahead. Remember it shows the statutory minimum — your contract may entitle you to more.
How to use this calculator
- Enter your age at the date of redundancy.
- Enter your full years of continuous service (part years are not counted).
- Enter your gross weekly pay before tax.
- Check the statutory weekly cap is current (£751 from 6 April 2026).
- Select Calculate to see your weeks of pay and total entitlement.
Formula and method
For each full year of service (max 20 years): • Under age 22 in that year → 0.5 week's pay • Aged 22 to 40 in that year → 1.0 week's pay • Aged 41 or over in that year → 1.5 weeks' pay Week's pay = MIN(your weekly pay, statutory cap) Redundancy pay = total weeks × capped week's pay
The calculator works backwards from your current age, assigning each year of service to the age band you were in during that year. Only the most recent 20 years count, and weekly pay above the statutory cap is reduced to the cap.
Example calculation
A 45-year-old with 10 years of service earning £800 a week (above the £751 cap):
- Years aged 41+: ages 44, 43, 42, 41 → 4 years × 1.5 = 6 weeks.
- Years aged 22–40: ages 40 down to 35 → 6 years × 1 = 6 weeks.
- Total = 12 weeks × £751 (capped) = £9,012, tax-free.
Age band reference
| Age during the year of service | Weeks' pay per year |
|---|---|
| Under 22 | 0.5 week |
| 22 to 40 | 1 week |
| 41 and over | 1.5 weeks |
Service capped at 20 years. Weekly pay capped at the statutory limit (£751 from 6 April 2026).
Common mistakes to avoid
- Using net pay. Statutory redundancy uses gross weekly pay before tax.
- Forgetting the cap. Even high earners are limited to the statutory weekly cap for the statutory amount.
- Counting part years. Only full years of service count.
- Ignoring the 2-year rule. Under 2 years' service usually means no statutory entitlement.
- Mixing up notice pay. Pay in lieu of notice and holiday pay are separate and taxed differently.
Limitations of this calculator
- Calculates the statutory minimum only — not enhanced or contractual redundancy.
- Assumes continuous employment and a genuine redundancy situation.
- The weekly cap changes each April; confirm the current figure before relying on the result.
- For US or Canadian situations, use the US severance or Canada severance calculators instead.
Frequently asked questions
How is statutory redundancy pay calculated in the UK?
For each full year of continuous service you get: half a week's pay for years worked while under 22, one week's pay for years aged 22 to 40, and one and a half weeks' pay for years aged 41 and over. Service is capped at 20 years and weekly pay at the statutory limit.
Who qualifies for statutory redundancy pay?
Employees with at least 2 years of continuous service who are genuinely made redundant. Agency workers, the genuinely self-employed and some other groups don't qualify. Your employment contract may provide more (“contractual redundancy pay”) but never less than the statutory minimum.
What is the maximum redundancy pay?
The statutory maximum is 20 years × 1.5 weeks × the weekly cap. With the £751 weekly cap (from 6 April 2026) that's a maximum of £22,530. The cap is reviewed every April, so check the current figure.
Is redundancy pay taxed?
Statutory redundancy pay is tax-free. More broadly, genuine redundancy payments are tax-free up to £30,000; anything above that is taxed as income. Pay in lieu of notice and holiday pay are taxed normally.
What counts as a week's pay?
Generally your gross weekly pay before tax, based on a normal week. If your pay varies, use the average over the 12 weeks before you were given notice. For the statutory calculation, weekly pay is capped at the current limit even if you earn more.
Does the calculator include enhanced or contractual redundancy?
No. It calculates the statutory minimum only. Many employers offer enhanced packages (for example, using actual pay with no cap, or more weeks per year). Check your contract or redundancy policy for any extra entitlement.
Disclaimer
This calculator provides general estimates for informational purposes only and is not a substitute for professional tax, legal, accounting or financial advice. Rules, rates and thresholds change frequently and vary by individual circumstances. Always confirm figures with the relevant authority or a qualified professional before acting.
Sources & references:GOV.UK — Calculate your statutory redundancy pay · GOV.UK — Redundancy: your rights · GOV.UK — Redundancy pay (tax)