UK Statutory Redundancy Pay Calculator 2026/27
Estimate your UK statutory redundancy entitlement from your age, complete years of continuous service and weekly gross pay. Weekly pay above the statutory cap is disregarded for this calculation.
You need at least 2 years of continuous service to qualify for statutory redundancy pay.
Capped at £751.00 for statutory purposes.
How it works
Statutory redundancy pay is a minimum legal entitlement for employees with at least two years of continuous service who are dismissed because their role is no longer needed. Your employer can pay more (contractual redundancy) but never less. Eligibility also depends on your employment dates and the circumstances of the dismissal — for example, unreasonably refusing suitable alternative employment can affect your entitlement.
The formula counts each complete year of service and multiplies it by a factor based on the age you were during that year:
- 0.5 weeks of pay for every full year under 22
- 1 week of pay for every full year at 22 to 40
- 1.5 weeks of pay for every full year at 41 or older
Two hard caps apply. First, only your first 20 years of service count, however long you've actually worked there. Second, weekly pay is capped at £751.00 for 2026/27, no matter how much you actually earn. So the maximum statutory redundancy payout in 2026/27 is 20 × 1.5 × £751.00 = £22,530.
The first £30,000 of a redundancy package is usually tax-free — that applies to statutory pay, contractual pay, and any ex-gratia payment on top. Anything above £30,000 is taxable as income. Which components of your final payment (notice pay, accrued holiday, bonuses) count towards this differs case by case, so the exact tax treatment depends on how your termination payment is structured.
For an official calculation, or if your situation is unusual, use the GOV.UK redundancy pay calculator or read our statutory redundancy pay guide.
Worked example
A 45-year-old with 10 complete years of service and £600 weekly pay (above the £751.00 cap, so capped): working backwards from age 45, the years aged 41–44 (4 years) each earn 1.5 weeks, and the years aged 35–40 (6 years) each earn 1 week. That's (4 × 1.5) + (6 × 1) = 12 weeks. 12 × £751.00 = £9,012.00, all of which falls inside the £30,000 tax-free limit.
Limitations of this calculator
- Assumes continuous, straightforward employment — breaks in service, TUPE transfers or previous redundancies can change the calculation.
- Does not calculate contractual/enhanced redundancy schemes, only the statutory minimum.
- Does not determine your eligibility — that depends on your employment history and the circumstances of dismissal.
- Tax treatment of the wider termination package (notice pay, holiday pay, bonuses) is not modelled — only the £30,000 statutory exemption on redundancy pay itself.
Frequently asked questions
Who is entitled to statutory redundancy pay?
Employees with at least two years of continuous service who are made genuinely redundant. Some workers — including agency workers, members of the armed forces and share fishermen — are excluded, and your specific circumstances (such as suitable alternative employment being unreasonably refused) can affect eligibility.
How is my age used?
The multiplier per year of service depends on the age you were during each year: 0.5 weeks per year under 22, 1 week for years worked between 22 and 40, and 1.5 weeks for years worked at 41 or older. Only your first 20 years of service count.
Is redundancy pay taxed?
It depends on the components of your termination payment. The first £30,000 of statutory or contractual redundancy pay is usually tax-free, but pay in lieu of notice, holiday pay and bonuses are taxed as normal income even within a redundancy package.
What if my weekly pay is very high?
For the purposes of statutory redundancy, weekly pay is capped at £751.00 (2026/27). Any pay above that is disregarded, even if you earn much more.
Can my employer pay more than the statutory amount?
Yes. Many employers pay contractual (enhanced) redundancy in addition to the statutory minimum. The first £30,000 of the combined total is usually tax-free.
Related calculators
Official sources
Figures on this page follow official UK government guidance for the 2026/27 tax year. Rates last verified: 27 August 2026. See our data sources and calculation methodology.
Estimates for general guidance only — not personalised financial advice.