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Salary · UK · Updated 2026

UK Redundancy Pay Calculator

Find out your statutory redundancy pay after 2+ years' service. Enter your age, full years worked and weekly pay — the amount is tax-free within £30,000.

Enter details

years
years
£

You need 2+ years' service. Weekly pay is capped at £751 (from 6 April 2026), the total at £22,530, and the amount is tax-free within £30,000.

=Statutory redundancy payredundancy pay
£2,500.00
EligibilityYes
Capped weekly pay£500.00
Weeks awarded5.00
Statutory redundancy pay£2,500.00
Taxon redundancy pay
£30,000

Tax-free within £30,000

Last updated: 12 July 2026. Statutory Redundancy Pay needs 2+ years' continuous service. You get 0.5 / 1 / 1.5 week's pay per full year worked (by age band, max 20 years), with weekly pay capped at £751 (from 6 April 2026) and the total capped at £22,530. The statutory amount is tax-free within the £30,000 termination limit. Source: gov.uk — Redundancy pay.

⚖︎ Results are for informational purposes and do not constitute tax advice. For specific situations, consult a licensed accountant or the relevant tax authority.

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iHow it is calculated

Statutory Redundancy Pay is based on your age, full years of service (capped at 20) and weekly pay (capped at £751 from 6 April 2026). For each full year you receive 0.5 week's pay for years worked under 22, 1 week's pay for years worked at 22–40, and 1.5 week's pay at 41 or over. You need at least 2 years' continuous service. The statutory amount is tax-free within the overall £30,000 termination limit.

statutory pay = Σ (weeks per year) × capped weekly pay (max £22,530)

A 45-year-old with 10 full years and weekly pay above the cap: 6 years worked at 22–40 (1 week each) plus 4 years at 41+ (1.5 weeks each) = 6 + 6 = 12 weeks × £751 = £9,012, entirely tax-free. With fewer than 2 years' service there is no statutory entitlement, though notice pay and holiday pay may still apply.

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?Frequently asked questions

Who qualifies for statutory redundancy pay?

Employees with at least 2 years' continuous service who are made redundant. You must be an employee rather than a contractor, and you keep the right even if you find another job during your notice period.

How is statutory redundancy pay calculated?

For each full year of service (up to 20) you get 0.5 week's pay for years worked while under 22, 1 week's pay for years worked at 22–40, and 1.5 week's pay for years worked at 41 or over, multiplied by your weekly pay (capped).

What is the weekly pay cap for 2026?

From 6 April 2026 the statutory weekly pay used in the calculation is capped at £751. If you earn more, the excess is ignored for the statutory figure, although your contract may pay more.

What is the maximum statutory redundancy pay?

The statutory maximum is £22,530 — that is 20 years × 1.5 weeks × £751. Service beyond 20 years and pay above the weekly cap do not increase the statutory amount.

Is redundancy pay taxable?

Statutory redundancy pay is tax-free within the overall £30,000 termination-payment limit. Payment in lieu of notice (PILON) and accrued holiday pay are taxed separately as normal earnings.

Do years count differently depending on my age?

Yes. The multiplier depends on your age during each year of service: 0.5 week per year worked under 22, 1 week at 22–40, and 1.5 weeks at 41 or over. Only complete years count.

Can my employer pay more than the statutory amount?

Yes. Many contracts or company policies offer enhanced (contractual) redundancy pay above the statutory minimum. The statutory figure is the legal floor for eligible employees.

Can I get redundancy pay with less than 2 years' service?

Not statutory redundancy pay — it requires 2+ years' continuous service. You may still be entitled to notice pay, accrued holiday pay and any enhanced contractual terms.

How many years of service count?

A maximum of 20 years counts towards statutory redundancy pay. Years are counted backwards from the date employment ends, and only full years are used.

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