Redundancy Pay Calculator 2026/27
Estimate statutory redundancy pay for England, Scotland and Wales using your date of birth, continuous service and weekly pay. The calculator shows the age-band calculation instead of giving you a black-box total.
Calculate your statutory redundancy pay
This version uses the Great Britain statutory limit that applies to redundancies on or after 6 April 2026. Enter gross weekly pay before tax. If your pay varies, use the appropriate 12-week average described below.
Informational estimate only. It covers the statutory Great Britain scheme and does not calculate contractual enhancements, notice pay or holiday pay. Northern Ireland has a separate statutory scheme.
Researched and maintained by Ruby Miller · HR & Employment Law Content Lead
How statutory redundancy pay is calculated
The statutory formula uses three things: your age during each full year of service, the number of full years of continuous employment that can be counted, and your weekly pay. The calculation works backwards from the relevant date and can count no more than the most recent 20 full years.
For each countable year, the age multiplier is:
| Age for that full year | Statutory weeks of pay |
|---|---|
| Under 22 | 0.5 week |
| 22 to 40 | 1 week |
| 41 or over | 1.5 weeks |
The weeks generated by those age bands are added together and multiplied by the weekly pay figure. For the 2026/27 rate used on this page, weekly pay is capped at £751 even if actual weekly earnings are higher. Because the most generous possible multiplier is 1.5 weeks for each of 20 years, the maximum is 30 statutory weeks × £751 = £22,530.
Before you rely on the result
This tool is deliberately narrower than a full employment-law assessment. It calculates the statutory arithmetic after you supply the dates and weekly pay, but several facts can change whether the figure is actually payable.
The calculator now returns £0 for continuous service under 2 full years rather than showing a positive statutory amount with a small warning. That is a safer presentation of the normal qualifying rule. It still cannot decide disputed employee status, continuity questions or whether an offered alternative role affects entitlement.
What weekly pay should you enter?
Use gross weekly pay before tax. If your hours and pay are regular, this will usually be your normal weekly contractual pay. If your pay varies, redundancy pay can use an average based on a 12-week period before the redundancy notice, with particular rules for weeks in which you did not work normally.
Guaranteed overtime in your contract and contractual bonuses or commission can also be relevant to the weekly-pay calculation. Because payroll patterns vary, this calculator does not attempt to reconstruct a 12-week average from payslips; it expects you to enter the weekly amount that should be used.
The relevant date can matter more than the announcement date
Redundancy calculations are not normally based on the day an employer first announces redundancies or starts consultation. The formula counts backwards from the statutory relevant date. In an ordinary case that will usually be tied to when employment ends.
Payment in lieu of notice (PILON) can make this more complicated. Where employment ends immediately and notice is paid instead of worked, the statutory relevant date used for redundancy calculations can extend beyond the actual last day worked. That extension can occasionally push someone over another complete year of service and change the payment.
Worked redundancy pay examples
Special situations that can change the answer
Voluntary redundancy
Voluntary redundancy does not automatically mean a lower statutory calculation. Employers often use the statutory formula as a minimum and may add an enhanced package. This calculator shows only the statutory amount and cannot model a company-specific enhancement unless the enhancement happens to use the same formula.
Family-related leave
If someone is on family-related leave when made redundant, redundancy pay should generally be based on normal contractual weekly pay rather than the reduced statutory payment they may have been receiving during leave. This can matter for maternity, paternity, adoption and other family-related leave.
TUPE transfers
Where employment transferred under TUPE, continuous service can carry across from the old employer to the new one. If redundancy happens later, service may therefore be longer than the time spent with the current employing entity alone.
Suitable alternative employment
Statutory redundancy pay can be affected if an employer offers suitable alternative work and the employee unreasonably refuses it. A calculator cannot decide whether a role is legally “suitable” because that depends on the actual job and circumstances.
Employer insolvency
If an employer cannot pay because it is insolvent, the Redundancy Payments Service may become relevant. Insolvency claims can also involve separate amounts for holiday pay, arrears and notice pay, each with its own rules.
What this calculator does not include
- Enhanced or contractual redundancy schemes that pay above the statutory minimum.
- Northern Ireland redundancy calculations.
- Automatic PILON or statutory-notice adjustments to the relevant date.
- Notice pay, payment in lieu of notice or compensation for loss of notice.
- Accrued but untaken holiday pay.
- Unpaid wages, bonus disputes or other money owed on termination.
- Whether an alternative job offer is suitable.
- Disputed employee status or disputed continuity of employment.
If redundancy ends employment with holiday still owed, use the Holiday Entitlement Calculator to estimate the remaining entitlement and the Holiday Pay Calculator for the value of leave where appropriate.
Four common redundancy-pay calculation mistakes
- ✕Applying one age to the whole period. The statutory multiplier is allocated year by year, so a long period of employment can contain more than one age band.
- ✕Using uncapped weekly pay. For current 2026/27 Great Britain calculations, weekly pay above £751 is still restricted to £751 for the statutory formula.
- ✕Counting more than 20 years. Only the most recent 20 full years can be used, even if total continuous service is much longer.
- ✕Using the redundancy announcement date. Consultation or announcement can happen before employment legally ends. The relevant date is what matters to the statutory service calculation.
Redundancy pay, tax and other final payments
A redundancy package can contain several different payments, and they are not necessarily taxed in the same way. Genuine redundancy or termination compensation can receive different tax treatment from wages, holiday pay and notice-related pay. The commonly quoted £30,000 exemption therefore should not be read as meaning that every payment on a final payslip is automatically tax-free.
Keep the statutory redundancy figure separate from notice pay, salary owed, holiday pay and any enhanced employer payment. If the tax treatment materially affects a decision, check current HMRC guidance or take appropriate professional advice.
How this calculator is reviewed
Ruby Miller
HR & Employment Law Content Lead
Ruby maintains the statutory leave and pay content behind LeaveCalculators.com. For this page, the current Great Britain weekly cap, maximum payment, 20-year service limit, age multipliers and 2-year qualifying rule are checked against official sources. See our Methodology, Sources and Editorial Policy for the wider review process.
Redundancy pay FAQs
Do I need 2 years’ service to get statutory redundancy pay?
Normally, yes. Employees generally need at least 2 years of continuous service with the employer. This calculator therefore shows £0 statutory redundancy pay where the dates produce fewer than 2 complete years.
What is the weekly redundancy pay cap for 2026/27?
For redundancies on or after 6 April 2026 in Great Britain, the weekly pay used in the statutory formula is capped at £751. The maximum statutory redundancy payment is £22,530.
Is there a maximum number of service years?
Yes. The statutory calculation can count a maximum of the most recent 20 full years of continuous employment.
Does the calculator work for Northern Ireland?
No. Northern Ireland has a separate statutory redundancy scheme and rates can differ. This tool is scoped to England, Scotland and Wales.
Can I get redundancy pay and start a new job straight away?
Starting a new job with an unrelated employer does not normally undo a statutory redundancy payment already due. However, an offer of suitable alternative employment from the existing employer or an associated situation can affect entitlement, so those cases need separate consideration.
Does weekly pay include overtime, bonuses or commission?
Guaranteed contractual overtime and contractual bonuses or commission can be relevant. If pay varies, the statutory weekly-pay calculation can require a 12-week averaging period. Use the appropriate gross weekly figure rather than simply dividing annual salary by 52 where that would ignore the statutory averaging rules.
What if I am paid in lieu of notice?
PILON can affect the statutory relevant date used to count service. This calculator does not automatically add a notice period, so check the relevant-date rule if the extra statutory notice period could take you over another service anniversary.
Is statutory redundancy pay tax-free?
Termination packages can include different types of payment. Genuine redundancy compensation may qualify for tax-free treatment within the relevant limit, while items such as wages, holiday pay and some notice-related payments can be taxable. Check current HMRC guidance for your package.
What if my employer refuses to pay?
Raise the issue with the employer first and keep a written calculation. Depending on the situation, Acas, an employment tribunal or the Redundancy Payments Service may be relevant. Time limits can apply, so do not assume a dispute can be left indefinitely.
Official sources
GOV.UK: Statutory redundancy pay — employee guidance
GOV.UK: Making staff redundant — statutory redundancy pay rates
Acas: Redundancy pay and relevant-date guidance
Rates and core rules checked . See the sitewide Sources & Evidence Standards page for our source hierarchy.