Redundancy Pay Calculator
Work out your statutory UK redundancy entitlement instantly.
Statutory Redundancy Pay
£4,000
Enhanced Pay (employer top-up)
£0
Total Redundancy Pay
£4,000
Tax-Free (first £30,000)
£4,000
Taxable Amount
£0
Just been made redundant?
Plan your budget around your payout so it lasts while you look for the next role.
How this was calculated
Statutory weeks entitlement: 8.0 weeks × capped weekly pay of £500 (weekly pay is capped at £719 for statutory purposes, 2026/27). Length of service is capped at 20 years. This is a guide only, check your contract for any enhanced company redundancy scheme. Last verified: 2026.
How Statutory Redundancy Pay Is Calculated
Your statutory entitlement depends on three things: your age, your length of continuous service (capped at 20 years), and your weekly pay (capped at the statutory limit, £719/week for 2026/27). The formula weights later years of service more heavily for older employees.
| Age During That Year of Service | Weeks' Pay Per Year |
|---|---|
| Under 22 | 0.5 weeks |
| 22 – 40 | 1 week |
| 41 and over | 1.5 weeks |
Statutory vs Enhanced Redundancy Pay
The figures above are the legal minimum, many employers offer enhanced redundancy schemes that pay more, often calculated as extra weeks per year of service or a multiple of the statutory amount. Check your contract or staff handbook, or ask HR whether an enhanced scheme applies to your role.
Is Redundancy Pay Taxed?
The first £30,000 of a redundancy payment is tax-free in the UK, covering both statutory and any enhanced element combined. Anything above £30,000 is subject to income tax (and, since April 2020, employer National Insurance) at your normal rate. Other elements of your final pay, unused holiday, notice pay, bonuses, are taxed as normal income and don't count towards the £30,000 exemption.
Worked Example: Age 45 With 12 Years' Service
Take someone aged 45 with 12 years of continuous service on £600 a week. Service is counted backwards from the redundancy date. Roughly four of those years fall at age 41 or over, earning 1.5 weeks each (6 weeks), and the other eight years fall between 22 and 40, earning 1 week each (8 weeks). That totals 14 weeks. At £600 a week the entitlement is 14 × £600 = £8,400. Their weekly pay is under the statutory cap, so the cap does not reduce it. The whole amount is below £30,000, so it is tax-free.
Frequently Asked Questions
How long do I need to have worked to qualify?
You normally need at least two years of continuous service with your employer to claim statutory redundancy pay.
Do I get notice as well as redundancy pay?
Yes. Notice pay is separate, and you are entitled to at least the statutory notice period or whatever your contract says if that is longer.
Can I be made redundant while on maternity leave?
There are extra protections. You may have a right to be offered any suitable alternative vacancy first. Speak to ACAS if this applies to you.
Does the cap apply to my weekly pay?
Yes. If you earn more than the weekly cap, the calculation uses the cap instead of your actual pay. The calculator applies it automatically.
⚠️ Important Disclaimer
This calculator estimates statutory redundancy pay only, using 2026/27 caps. It does not account for any enhanced company scheme, notice pay, or unused holiday. This is not legal or financial advice, check ACAS or gov.uk for your exact entitlement.
Frequently Asked Questions
How is statutory redundancy pay calculated?
You get half a week's pay for each full year you were under 22, one week's pay for each full year aged 22-40, and one and a half week's pay for each full year aged 41 or older. Length of service is capped at 20 years, and weekly pay is capped at the statutory limit (£719/week for 2026/27).
Who qualifies for statutory redundancy pay?
You must have worked continuously for the same employer for at least 2 years and be an employee (not a contractor) to qualify for statutory redundancy pay in the UK.
Is redundancy pay taxed?
The first £30,000 of redundancy pay is tax-free in the UK. Anything above that is subject to income tax and National Insurance.
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Not Financial Advice: This calculator is for informational and educational purposes only. Results are estimates and do not constitute financial advice, recommendations, or regulated advice. We are not authorised or regulated by the Financial Conduct Authority (FCA). Always consult a qualified financial adviser for personalised advice. Tax treatment depends on your individual circumstances and may change. Tax laws and rates may change. Past performance does not guarantee future results.
