Statutory Redundancy Pay Calculator (UK)
Facing redundancy is stressful, but understanding your financial entitlements can help you plan ahead. Every eligible employee in the UK has a legal right to statutory redundancy pay based on their age, length of service, and weekly earnings.
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The calculation uses a tiered system where older workers and those with longer service receive more. Your weekly pay is capped at £751 in England, Scotland and Wales for relevant dismissals from 6 April 2026, and only the most recent 20 years of service count. Many people underestimate their entitlement because they don't realise the age multipliers work in their favour.
Crucially, statutory redundancy pay is tax-free up to £30,000 – well above the maximum statutory amount of £22,530. Enter your details below to estimate your statutory amount and how the calculation breaks down by age band.
Statutory Redundancy Pay Calculator
Complete years of continuous employment, up to 20, assuming statutory eligibility. Genuine termination awards share the £30,000 exemption; notice pay, holiday pay and wages are separate taxable earnings.
England, Scotland and Wales limits. Northern Ireland has separate limits. Check the relevant date with your employer, particularly for notice-period extensions.
Minimum 2 years to qualify. Max 20 years counted.
Capped at £751/week for the relevant dismissal date.
What this means for your payout
Your weekly pay is capped at £751 for 2026/27 and only the most recent 20 years count, so the maximum statutory payout is £22,530. Each full year after age 41 earns 1.5 weeks, each full year after 22 up to 41 earns 1 week, and earlier years earn half a week — your age band can move the total by thousands.
The full £30,000 redundancy tax-free allowance covers anything paid as genuine redundancy, but PILON (payment in lieu of notice), holiday pay and bonuses are taxed normally. Use our redundancy tax calculator to see the tax on any excess. Many companies pay above the statutory minimum — always check your contract for an enhanced scheme.
How Redundancy Pay Is Calculated
Great Britain statutory redundancy pay follows a formula set by the government. Your entitlement depends on three factors: your age during each year of service, the number of complete years you've worked for the same employer, and your weekly gross pay (subject to a cap).
The calculation works backwards through complete years. Turning 41 does not make the previous year a full year after your 41st birthday. For each complete year of service, you receive a different multiplier based on your age during that year:
Under 22
0.5 weeks
Half a week's pay per year of service
Aged 22–40
1 week
One week's pay per year of service
Aged 41+
1.5 weeks
One and a half weeks' pay per year
In England, Scotland and Wales, weekly pay is capped at £751 for relevant dismissals from 6 April 2026 (previously £719 from 6 April 2025, £700 from 6 April 2024 and £643 from 6 April 2023). Northern Ireland has separate limits. The maximum number of years counted is 20, giving a maximum statutory payout of £22,530 at the current Great Britain cap.
Tax Treatment of Redundancy Pay
One of the most important aspects of redundancy pay is its favourable tax treatment. The first £30,000 of a genuine redundancy payment is completely exempt from Income Tax and National Insurance.
Tax-Free (up to £30,000)
- • Statutory redundancy pay
- • Enhanced/contractual redundancy
- • Ex-gratia payments
- • Non-contractual PILON
Always Fully Taxable
- • Contractual PILON payments
- • Outstanding salary and wages
- • Accrued holiday pay
- • Bonus payments owed
Use our Redundancy Tax Calculator to see the full tax picture including enhanced payments and PILON.
Who Qualifies for Statutory Redundancy Pay
To qualify, you must be an employee (not a contractor or agency worker) with at least 2 years of continuous service. You must have been genuinely made redundant – meaning your employer is closing, moving, or needs fewer employees to do a particular kind of work.
You do not qualify if you are dismissed for misconduct, if you unreasonably refuse a suitable alternative role, or if you have less than 2 years' service. If you believe you've been unfairly denied redundancy pay, you can make a claim to an employment tribunal within 6 months.
Frequently Asked Questions
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⚖️ Offered less than the calculator shows?
First4Lawyers can connect you with a UK employment solicitor for a free initial review of your redundancy or settlement offer — useful if your employer is paying below the statutory minimum.
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Emma App tracks every account, subscription and bill in one place so you can stretch your redundancy lump sum while you find your next role.
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