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United Kingdom Statutory Redundancy Pay Calculator

Source: https://www.gov.uk/redundancy-your-rights/redundancy-pay

Statutory redundancy pay calculator
Result
Weekly pay used in calculation£500
Years counted (capped at 20)5
  • 5 year(s) aged 22–40 → 1 week/year
Statutory redundancy pay£2,500

Informational — statutory minimum only; contractual or enhanced redundancy terms may apply and are not calculated here. Weekly pay cap: £751 (effective 2026-04-06, source: gov.uk). This is not legal or financial advice.

Managing this situation?

I need to make a role redundant

Redundancy Process Pack

Work out statutory redundancy pay (England, Wales & Scotland) from an employee's age, full years of continuous service, and weekly pay — applying the age-banded formula and the current statutory weekly-pay cap.

Key figures
  • Qualify: At least 2 years' continuous service (otherwise no statutory payment).
  • Per full year of service: Under 22 → half a week's pay; 22–40 → one week's pay; 41+ → one and a half weeks' pay.
  • Service cap: Capped at 20 years.
  • A "week's pay": Capped at £751 (effective 6 April 2026).
  • Maximum statutory payment: 30 × the weekly cap (20 yrs × 1½ weeks) — currently £22,530.

Tax treatment

Tax treatment depends on your termination package. Qualifying statutory redundancy pay is generally tax-free up to £30,000, but other payments (such as notice pay, holiday pay or bonuses) may be taxable. Tax rules may change — always refer to the latest HMRC guidance for your individual circumstances.

GOV.UK — Redundancy: tax and National Insurance
Frequently asked questions
How is statutory redundancy pay calculated?
From three things: age, full years of continuous service (capped at 20), and weekly pay (capped at £751). You get half a week's pay per year worked under 22, one week per year aged 22–40, and one and a half weeks per year aged 41 or over.
How long must I have worked to qualify?
At least 2 years of continuous service.
Is there a maximum?
Yes — with a week's pay capped at £751 and service capped at 20 years, the maximum statutory payment is 30 weeks' capped pay (currently around £22,530).
Do older employees get more?
Yes — one and a half weeks' pay per full year from age 41, versus one week (22–40) and half a week (under 22).
Is statutory redundancy pay taxable?
Tax treatment depends on your whole termination package. Qualifying statutory redundancy pay is generally tax-free up to £30,000; other payments (such as notice pay, holiday pay or bonuses) may be taxable. This calculator shows the statutory redundancy amount only — it does not calculate tax. Tax rules may change, so always refer to the latest HMRC guidance for your individual circumstances.
What counts as a "week's pay"?
Average weekly earnings over the 12 weeks before notice — but only up to the statutory cap of £751; pay above the cap doesn't increase the statutory figure.
Sources

Figures sourced from GOV.UK · effective 6 April 2026.

GOV.UK — Redundancy pay

This calculator gives a general estimate based on current published rates for England, Wales and Northern Ireland. It is not tax or legal advice, and it does not cover every personal circumstance. Rates and thresholds change — always check the current position on GOV.UK before relying on a figure. For advice on your specific situation, consult a qualified professional.

Explore the Redundancy Process Pack