Statutory Redundancy Pay Calculator
Work out the legal minimum redundancy pay for an employee using their date of birth, start date, leaving date and weekly pay. The result separates the statutory lump sum from notice pay, because those two payments are often confused and taxed differently.
Calculate your redundancy pay
Use the relevant date your employment ends, or would have ended if notice had been worked.
Optional comparison: employer enhanced scheme
Enter your details and calculate. A worked result will appear here.
What this calculator is built for
This calculator is for employees who want a quick, realistic check of their statutory redundancy pay before speaking to HR, payroll, a union rep or an adviser. It is deliberately focused on the legal minimum, because that is the part with a published formula. Many employers pay more than the statutory amount, but enhanced schemes can use their own multipliers, uncapped pay, length-of-service rules, voluntary redundancy terms or settlement-agreement wording.
The page therefore follows an eligibility-first journey. If you do not have two full years of service, the main result should say so before it talks about money. If you do qualify, the calculator shows the statutory redundancy figure, the capped weekly pay used, the age-band split, the tax-free portion of the statutory redundancy payment and a separate statutory notice-pay estimate. That split matters in real life: someone can receive redundancy compensation, pay in lieu of notice, unpaid wages and holiday pay in the same final payment, but they are not all treated in the same way.
The redundancy calculation in plain English
Statutory redundancy pay is based on three things: your weekly pay, your full years of continuous employment and your age during each counted year of service. The law does not simply multiply your current salary by your total years. Each full year falls into one of three age bands. A year when you were under 22 is worth half a week of pay, a year when you were 22 to 40 is worth one week, and a year when you were 41 or over is worth one and a half weeks.
The service cap is just as important as the age bands. Only 20 full years can be counted, and the calculation normally uses the most recent years ending with the relevant redundancy date. That means someone who has worked for the same employer for 27 years does not get 27 years in the statutory formula. They get the latest 20 years. If all those counted years were age 41 or over, the maximum is 30 weeks of pay.
Weekly pay is also capped for statutory purposes. For redundancies on or after 6 April 2026, the cap in England, Scotland and Wales is GBP 751, giving a maximum statutory redundancy payment of GBP 22,530. For 6 April 2025 to 5 April 2026, the GB cap is GBP 719, giving a maximum of GBP 21,570. Northern Ireland has its own cap: GBP 749 for 2025/26 and GBP 783 from 6 April 2026, giving a current maximum of GBP 23,490. If you earn less than the cap, your actual average weekly pay is used.
How this calculator works
Inputs used
- Date of birth, employment start date and employment end date.
- Location, because Northern Ireland uses a different statutory weekly pay cap.
- Gross weekly pay before the redundancy notice.
- Optional enhanced-scheme comparison inputs, shown separately from the statutory result.
Calculation method
- Checks whether there are at least two full years of continuous employment.
- Counts full years only and caps reckonable service at 20 years.
- Works through the counted service years and applies 0.5, 1.0 or 1.5 weeks depending on age at the start of each year.
- Applies the correct weekly pay cap for GB or Northern Ireland and multiplies capped weekly pay by total statutory weeks.
- Shows statutory notice weeks separately, using one week per year from two to 12 years and 12 weeks thereafter.
Assumptions
- The employment end date is the relevant date for redundancy purposes. If payment in lieu of notice changes the relevant date, use the date employment would have ended after statutory notice.
- Weekly pay is the average gross weekly pay relevant to the statutory calculation. Variable pay, contractual overtime, commission or furlough history may need careful averaging.
- The tax-free comparison only covers redundancy compensation. Use the take-home pay calculator for normal taxable pay such as notice pay or final wages.
What this does not cover
- It does not decide whether a role is genuinely redundant, whether selection was fair, or whether consultation was lawful.
- It does not calculate settlement-agreement tax, employer National Insurance on termination awards above GBP 30,000, benefits interaction, Universal Credit, or tribunal awards.
- It does not replace the official GOV.UK redundancy calculator, Acas, Labour Relations Agency or legal advice.
Current statutory caps
| Redundancy date | GB weekly cap | NI weekly cap | Maximum statutory pay |
|---|---|---|---|
| 6 Apr 2025 to 5 Apr 2026 | £719 | £749 | GB £21,570 / NI £22,470 |
| On or after 6 Apr 2026 | £751 | £783 | GB £22,530 / NI £23,490 |
Redundancy, notice and final pay are different
Treat the final payslip as a bundle, not one single redundancy payment. Statutory redundancy pay is compensation for losing the job. Notice pay is pay for the notice period, or payment instead of working it. Unpaid wages and holiday pay are normal employment earnings. The first GBP 30,000 of genuine redundancy compensation is generally outside tax, but notice pay and wages are usually taxable. If your employer gives you one combined figure, ask for a written breakdown before you compare it with the calculator.
A practical worked example
Suppose Maya is made redundant in England on 13 May 2026. She was born on 13 May 1981, started work on 13 May 2014 and earns GBP 650 a week. She has 12 full years of service. The counted service years start when she was 33 and end just before she turned 45. Eight years fall in the 22 to 40 band and four years fall in the 41-plus band. Her statutory weeks are therefore 8 x 1 plus 4 x 1.5, which gives 14 weeks.
Because her weekly pay of GBP 650 is below the 2026/27 GB cap of GBP 751, the calculator uses GBP 650. Her statutory redundancy pay is 14 x GBP 650, or GBP 9,100. That statutory redundancy amount is below GBP 30,000, so it is not taxable as redundancy compensation. Her notice pay is separate. With 12 years of service, statutory notice is 12 weeks, so a rough statutory notice-pay figure would be 12 x GBP 650, or GBP 7,800, but that notice pay is normally treated as employment income.
Checks to make before accepting a redundancy figure
The calculator gives a useful minimum, but the paperwork matters. Ask your employer for a written redundancy calculation showing the relevant date, the number of years counted, the age-band split, the weekly pay used and whether any weekly cap has been applied. In Northern Ireland, check that the NI cap has been used rather than the GB cap. If your pay changes from week to week, ask how the average was calculated and whether regular overtime, commission or bonuses were included.
Also check whether you are being offered suitable alternative work. GOV.UK says a role may be suitable depending on the work, terms, skills, pay, benefits, status, hours and location. Refusing a genuinely suitable alternative without good reason can put statutory redundancy pay at risk, but you normally have a four-week trial period for alternative employment. This is one of those moments where the money calculation and the employment-rights question overlap, so do not treat the calculator result as the whole answer.
What happens if the employer is insolvent?
If the employer cannot pay because it is insolvent, the UK government insolvency route may cover statutory amounts, including redundancy pay and certain other unpaid employment debts. The caps still matter, and contractual amounts above statutory limits may not be paid through the government route. Keep payslips, contract documents, redundancy letters and any settlement correspondence. If you are in Northern Ireland, the Redundancy Payments Service and Labour Relations Agency routes are especially relevant.
FAQs
How much is statutory redundancy pay in 2026/27?
For redundancies on or after 6 April 2026, the GB weekly pay cap is GBP 751, so the maximum statutory redundancy pay is GBP 22,530. In Northern Ireland the current weekly cap is GBP 783, giving a maximum of GBP 23,490.
Do I get statutory redundancy pay with less than two years service?
Usually no. Statutory redundancy pay normally requires at least two full years of continuous employment with the same employer by the relevant date.
Is redundancy pay taxable?
Statutory redundancy pay under GBP 30,000 is not taxable. Notice pay, unpaid wages and holiday pay are normally treated differently and can be taxed as employment income.
Why does my employer figure differ from this calculator?
Differences usually come from the weekly pay figure, the exact relevant date, enhanced company schemes, variable pay averaging, contractual notice rules, or Northern Ireland using a different weekly cap.
Official sources
Last verified: 13 May 2026. Calculations are estimates based on the published rules and assumptions shown on this page.
- GOV.UK - statutory redundancy pay - GB eligibility, age bands, 20-year cap, weekly cap and claim deadline.
- GOV.UK - tax and National Insurance on redundancy payments - Tax treatment of statutory redundancy and termination payments.
- GOV.UK - notice periods - Statutory redundancy notice periods and payment in lieu of notice.
- nidirect - redundancy pay - Northern Ireland calculation rules, cap and worked examples.
- Department for the Economy NI - 2026 limits - Northern Ireland weekly pay cap from 6 April 2026.
- GOV.UK - consultation rules - Individual and collective consultation timing.
- GOV.UK - suitable alternative employment - Trial periods and refusal risk.