UK Redundancy Pay Calculator

Statutory redundancy pay follows a formula old enough to have its quirks memorised by employment lawyers: half a week's pay for each full year of service before age 22, one week for each year between 22 and 40, and one and a half weeks for each year at 41 or older — with only the last 20 years counting and weekly pay capped by law. That cap rose to £751 for dismissals on or after 6 April 2026 (from £719), pushing the maximum possible statutory payment to £22,530. The first £30,000 of redundancy pay is tax-free, which comfortably covers any statutory amount. This calculator applies the age bands the way tribunals do — working backwards through your service year by year at the age you were at the time — so you get the precise number of weeks and pounds, not a rough average. Enter your age, complete years of service, and gross weekly pay, and adjust the cap if you're calculating for an earlier dismissal date.

When redundancy is announced, the statutory figure is your floor for negotiation — you can't get less, and knowing it precisely tells you what any "enhanced" offer is really worth on top. The details move real money: a year of service completed a week before dismissal versus a week after can be worth £1,126 at the capped rate; crossing your 41st birthday shifts every subsequent year from 1 to 1.5 weeks. The cap matters most to higher earners — anyone on more than £751 a week (about £39,000 a year) has their excess earnings ignored entirely, which is why statutory redundancy often feels small against a City salary. Check the number before any settlement conversation, not after.

For each of your last 20 complete years of service, take the multiplier for the age you were during that year: 0.5 under 22, 1.0 from 22 to 40, 1.5 at 41 and over. Sum the multipliers, then multiply by your gross weekly pay capped at £751 (2026/27). The theoretical maximum is 20 years × 1.5 × £751 = £22,530. Statutory redundancy pay is tax-free (the £30,000 termination-payment exemption covers it entirely), though contractual extras like notice pay in lieu are taxed normally.

1. Enter your age at dismissal. Your age on the date employment ends — this anchors the year-by-year band calculation.
2. Enter complete years of service. Full years of continuous employment only; part-years are dropped. If a redundancy date is negotiable, check whether waiting completes another year.
3. Enter gross weekly pay. Normal gross pay before deductions. Variable pay? Use the 12-week average ending on the calculation date. The cap is applied for you.
4. Set the right cap for your dismissal date. £751 for dismissals on or after 6 April 2026; £719 for the year before. The date of dismissal, not the payment date, decides which applies.
5. Compare against any offer. The result is your legal minimum. Score enhanced offers, settlement agreements, and voluntary-redundancy terms against it.

• Multiplying years by your current age band. The formula uses the age you were during each year of service — most people's service spans two or three bands.
• Counting part-years. Only complete years qualify; 11 years and 11 months is 11 years. If dates are flexible, a few weeks' difference can add a full year.
• Ignoring the weekly cap. Earnings above £751 a week (2026/27) simply don't feature — the statutory scheme was never designed to replace a high salary.
• Assuming everything in the settlement is tax-free. Statutory redundancy is; holiday pay and notice pay (including PILON) are taxed as normal earnings; only genuine ex-gratia amounts share the £30,000 exemption.
• Missing the two-year qualifying rule. You need at least 2 complete years of service to get statutory redundancy pay at all.

• If a proposed dismissal date sits just before a service anniversary or your 41st birthday, it's legitimate to negotiate the date — the difference is a formula input, not a favour.
• Use GOV.UK's tables or this calculator in redundancy consultations; employers occasionally get the age-band arithmetic wrong, usually not in your favour.
• Voluntary redundancy packages are typically enhancements on the statutory formula — knowing your statutory figure prices the enhancement precisely.
• Redundancy pay doesn't affect entitlement to claim New Style Jobseeker's Allowance, and paying part of a package into your pension can shelter amounts above £30,000 from tax.
• Check your contract for an enhanced redundancy scheme before negotiating — a contractual scheme binds the employer just as the statute does.

Three inputs — age, service, weekly pay — and two caps decide your statutory redundancy entitlement. The formula is mechanical, which is its virtue: run it yourself and you know your floor before anyone slides a settlement agreement across the table. For dismissals from April 2026 the ceiling is £22,530, tax-free; anything better than the formula produces is negotiation, and now you can measure it.

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• GOV.UK — Redundancy: your rights (gov.uk) — Official rules, consultation rights, and the government calculator
• Acas — Your rights during redundancy (acas.org.uk) — Independent guidance on process and fairness