Redundancy Pay Calculator
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Informational estimate only, based on official GOV.UK guidance and assumes the person is eligible — see the eligibility notes below. Not legal or payroll advice.
Quick answer: Statutory redundancy pay is based on age, length of service (capped at 20 years) and weekly pay (capped at £751/week, max £22,530 for 2026/27).
Written by Ruby Miller · HR & Employment Law Content Lead
How this is calculated
Statutory redundancy pay is based on age, length of continuous service (capped at 20 years) and weekly pay (capped at £751 for the 2026/27 tax year, giving an absolute maximum payment of £22,530).
For each full year of service — counting backwards from the leaving date — the calculator works out the exact age at that point using the date of birth entered, then applies: 0.5 week’s pay for a year worked under age 22; 1 week’s pay for a year worked age 22–40; and 1.5 weeks’ pay for a year worked age 41 and over. The weekly pay figure used is capped at the current statutory limit even if actual weekly pay is higher.
Why dates, not just an age and a year count
Using exact dates of birth, start and leaving means the age-band multiplier for each year of service is calculated precisely against real anniversaries, rather than approximated — so a result near an age-band boundary (22nd or 41st birthday) is accurate rather than rounded.
When redundancy ends your employment, you’re also usually owed pay for any statutory holiday you’ve accrued but not yet taken. Use the Holiday Entitlement Calculator to work out how many days that is, then the Holiday Pay Calculator to see what each day is worth.
The age-band multiplier, at a glance
Each full year of service earns a different number of statutory weeks depending on the employee’s age during that specific year — not their age at redundancy overall. That’s why long-serving staff who crossed an age threshold partway through their career often have a mix of all three rates in their final total:
| Age during that year of service | Weeks’ pay earned |
|---|---|
| Under 22 | 0.5 week per year |
| 22 to 40 | 1 week per year |
| 41 and over | 1.5 weeks per year |
Service is capped at 20 years even if someone has worked for the same employer longer, so the maximum possible statutory entitlement is 20 years × 1.5 weeks (all served at 41+) = 30 weeks’ pay, at the capped weekly rate.
Who this applies to
Eligibility isn’t checked here — the calculator just does the arithmetic. Before you rely on the figure, check you actually meet these conditions:
- At least 2 years’ continuous service with the employer.
- Employee status (not a worker, contractor, or genuinely self-employed).
- Dismissal by reason of redundancy, rather than performance, conduct or resignation.
Special cases
Made redundant during your notice period
Statutory redundancy pay is based on your continuous service up to the date your employment actually ends, not the date redundancy was announced. If you’re working your notice, your leaving date — not the announcement date — is what should go into this calculator.
Re-employed by an associated company
If you’re made redundant but immediately re-employed by an associated employer (such as a sister company in the same group) without a break, your continuous service usually carries over rather than resetting — check your specific circumstances with HR before assuming a break in service.
Voluntary redundancy
Voluntary redundancy is calculated the same way as compulsory redundancy for the statutory minimum. Employers sometimes offer an enhanced voluntary package on top, which this calculator does not model.
Crossing an age threshold mid-career
Someone who worked from age 38 to 45 doesn’t get a single flat rate for all 7 years — the calculator (correctly) applies 1 week/year for the years worked at 22–40, then switches to 1.5 weeks/year for the years worked at 41+, exactly as the statutory formula requires.
Worked examples
What this calculator doesn’t cover
- Does not check the 2-year qualifying service requirement — it assumes eligibility.
- Does not apply to Northern Ireland, which has a separate (though similar) statutory redundancy scheme.
- Does not include any enhanced or contractual redundancy terms an employer may offer on top of the statutory minimum.
- Assumes continuous service with no breaks that would reset the qualifying period.
- Does not calculate notice pay or accrued holiday pay owed alongside redundancy pay.
Where a back-of-envelope figure usually goes wrong
We’ve checked enough HR-team spreadsheets to know redundancy pay is one of the easiest statutory figures to get subtly wrong, even for people who do it regularly. It’s rarely one big error — it’s one of these four small ones.
- ✕Using current age instead of age during each service year. By far the most common one. The multiplier is applied year by year against the age at that specific anniversary, not a single age applied to the whole tenure.
- ✕Using actual weekly pay instead of the capped figure. Anyone earning above £751 a week (2026/27) still has their statutory redundancy pay calculated using the £751 cap, not their real salary.
- ✕Confusing the announcement date with the leaving date. Continuous service is counted up to the date employment actually ends, which is often weeks after redundancy is first announced or consulted on.
- ✕Forgetting the 20-year service cap. Even with 25 years at the same employer, statutory redundancy pay only counts the most recent 20 years of service.
FAQs
Do I need a minimum length of service to qualify?
Yes. You generally need at least 2 years’ continuous service with the same employer to qualify for statutory redundancy pay.
What if I don’t know my exact start date?
Use the date from your contract, offer letter or HR records. Being off by a few days rarely changes the result, since the age-band multiplier only shifts on a birthday.
Is statutory redundancy pay taxable?
The first £30,000 of a genuine redundancy payment is usually tax-free. Amounts above that threshold, or payments that don’t meet the strict definition of redundancy, may be taxable — check current guidance for your specific situation.
Can I get statutory redundancy pay and still get a new job the same week?
Yes — statutory redundancy pay is compensation for the job ending, not unemployment support. Starting a new role immediately doesn’t affect your entitlement to it.
What’s the difference between statutory and contractual redundancy pay?
Statutory redundancy pay is the legal minimum calculated by this formula. Many employers — especially larger ones — offer a more generous contractual scheme instead, which this calculator does not model; always check your contract or redundancy policy first.
Does my weekly pay figure include overtime and bonuses?
Generally, “a week’s pay” for this calculation is based on normal contractual pay, which may or may not include regular overtime depending on your contract — if unsure, use your basic contractual weekly pay and check with HR or ACAS for anything more complex.
What if my employer refuses to pay statutory redundancy pay I’m owed?
You can raise it formally with your employer first, and if unresolved, claim through an employment tribunal or apply to the government’s Redundancy Payments Service if your employer is insolvent. Acas can also advise on the process before it reaches a tribunal.