Statutory Redundancy Pay Calculator
Statutory redundancy pay is based on how long you have worked for your employer, your age and your weekly pay. It is paid when you are made redundant after two or more complete years of service.
You get half a week’s pay for each year you were under 22, one week’s pay for years aged 22 to 40, and one and a half weeks’ pay for years aged 41 or over — capped at 20 years and a weekly pay cap.
How the calculation works
We believe numbers should be transparent. Here is the formula behind this calculator.
Worked example
Worked example: 46-year-old with 10 years’ service in 2026/27
Examples at common levels
See how the numbers change at typical input levels, using the updated for tax year 2026/27 rates.
| Scenario | Statutory redundancy pay | Weeks’ pay you’re entitled to | Weekly pay used | Qualifying service used |
|---|---|---|---|---|
| 30 years old, 4 years’ service, £500 a week | £2,000.00 | 4 | £500.00 | 4 years |
| 46 years old, 10 years’ service, £500 a week | £6,500.00 | 13 | £500.00 | 10 years |
| 55 years old, 20 years’ service, £800 a week | £20,652.50 | 27.5 | £751.00 | 20 years |
| 62 years old, 25 years’ service, £900 a week | £22,530.00 | 30 | £751.00 | 20 years |
Important assumptions
- You qualify after two or more complete years of continuous service.
- Weekly pay is the average over the 12 weeks before your redundancy notice, capped at the statutory weekly limit for the tax year.
- Service is capped at 20 years and each year counts at your age during that year of service.
- Shows the statutory minimum only — your contract or redundancy scheme may pay more.
Rates & official sources
Every calculation is based on the official rates and rules published by GOV.UK and HMRC.
Frequently asked questions
Who is entitled to statutory redundancy pay?
You are entitled if you have been continuously employed for at least two years and are being made redundant rather than dismissed for another reason. Some groups are excluded, such as self-employed contractors and most agency workers.
Is redundancy pay taxable?
The first £30,000 of any redundancy payment is tax-free. Statutory redundancy pay is always covered by this exemption, and most contractual redundancy payments are too unless they are for unspent holiday or notice pay.
What is the weekly pay cap?
For employment ending on or after 6 April 2026 the cap is £751 a week (£719 for 2025/26). Even if you earn more, only this amount is used to calculate your statutory entitlement.
Can I get more than the statutory amount?
Yes. Your employment contract may guarantee a better redundancy package, or your employer may offer an enhanced scheme. This calculator shows the statutory minimum you must be paid.
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Read the guideThese calculations are estimates for guidance only and are not professional financial, tax or legal advice. UK rates and rules change, so always verify important figures with official GOV.UK / HMRC information or speak to a qualified professional. See our full disclaimer.