UK Statutory Redundancy Calculator
Statutory redundancy pay is the legal minimum your employer must pay when making you redundant. This calculator follows HMRC's statutory redundancy rules exactly — enter your dates and gross pay to get an instant, accurate figure based on 2026/27 rates. Your employer can pay more, but cannot pay less than this amount.
How it's calculated
Age bands (per full year of service):
- Worked under age 22 — ½ week's pay per year
- Worked aged 22–40 — 1 week's pay per year
- Worked aged 41 or over — 1½ week's pay per year
Weekly pay cap: Only the statutory cap applies (£751/week from 6 April 2026). If your weekly pay is lower, your actual pay is used.
Maximum service: Only the most recent 20 years of service count.
Age is calculated per year: The multiplier for each year is based on the age you were at the end of that year of service, not your current age.
Frequently Asked Questions
- How is UK statutory redundancy pay calculated?
- UK statutory redundancy pay is calculated by multiplying your weekly pay (capped at the statutory limit) by the number of weeks you are entitled to, based on your age during each year of service. For each full year worked under age 22, you get half a week's pay; for each year aged 22–40, you get one week's pay; and for each year aged 41 or over, you get one and a half weeks' pay. Only the most recent 20 years of service count. The age multiplier is applied year by year — not based on your current age alone.
- Who qualifies for statutory redundancy pay in the UK?
- To qualify for statutory redundancy pay in the UK you must: be an employee (not self-employed or a worker), have at least 2 years of continuous service with the same employer, and be genuinely made redundant (not dismissed for another reason). Agency workers, the self-employed, and those who resign do not qualify for statutory redundancy pay.
- What is the weekly pay cap for redundancy in 2026/27?
- The statutory weekly pay cap is £751 per week for the 2026/27 tax year (from 6 April 2026). This cap is reviewed annually by the government each April. If your actual gross weekly pay is below £751, your actual pay is used. If it is above £751, only £751 is counted. The cap applies to gross weekly pay before any deductions. The maximum possible statutory redundancy payment is £22,530 (20 years × 1.5 weeks × £751).
- What is the difference between statutory and enhanced redundancy pay?
- Statutory redundancy pay is the legal minimum set by the government under the Employment Rights Act 1996. Enhanced redundancy pay is anything your employer offers above this minimum — for example a higher weekly pay cap, a higher multiplier, or counting more than 20 years of service. Enhanced terms may be set out in your contract of employment or company redundancy policy. If your employer offers enhanced redundancy, your contract is the authoritative source — this calculator shows only the statutory minimum.
- Is redundancy pay taxable in the UK?
- Statutory redundancy pay is tax-free up to £30,000. You will not pay income tax or National Insurance contributions on amounts up to this threshold. If your total termination package (including contractual redundancy, pay in lieu of notice, or other payments) exceeds £30,000, the excess is taxed at your marginal income tax rate.
- Can I claim statutory redundancy pay if I was made compulsorily redundant?
- Yes — compulsory redundancy (where your employer selects you for redundancy) is the most common scenario where statutory redundancy pay applies. You may also be entitled to statutory redundancy pay in a voluntary redundancy situation if you accept a genuine voluntary redundancy offer. In both cases you must have at least 2 years of continuous service. If your employer refuses to pay, you can make a claim to an Employment Tribunal within 6 months of your employment ending.