Redundancy Calculator

Statutory redundancy pay is calculated based on your age, length of service (up to 20 years), and weekly pay (capped at £751 in 2026/27). For each year of service you receive: 0.5 weeks' pay if you were under 22 that year, 1 week's pay if you were aged 22 to 40, and 1.5 weeks' pay if you were 41 or over. The total is the sum across all years of service.

The maximum statutory redundancy pay in 2026/27 is £22,530. This applies to someone aged 61 or over with at least 20 years' service, earning at or above the £751 weekly cap: 20 years × 1.5 weeks × £751 = £22,530. Most people receive significantly less.

Statutory redundancy pay is tax-free, as is any enhanced redundancy pay up to £30,000. The £30,000 threshold covers your total redundancy package. Any redundancy payment above £30,000 is subject to income tax (but not National Insurance) in the normal way.

Only the last 20 years of continuous service with your employer count. Any service before your 16th birthday does not count. You also need at least 2 years' continuous service to qualify for any statutory redundancy pay at all.

The statutory weekly pay cap for 2026/27 is £751 (raised from £643 in April 2026). If your actual weekly pay is higher, the calculation uses £751 instead. This cap increases each April in line with the Retail Price Index. On a monthly salary, weekly pay is calculated as annual salary ÷ 52.

To qualify for statutory redundancy pay you must: be an employee (not self-employed or a worker), have at least 2 years' continuous service with your employer, and be made redundant (not dismissed for another reason or resign). Agency workers, self-employed contractors, and most volunteers do not qualify.