Statutory Redundancy Pay Calculator (UK)
Use this estimator to calculate an approximate statutory redundancy payment based on age, years of continuous service, and weekly pay.
What is statutory redundancy payment?
Statutory redundancy pay is the legal minimum payment many employees in the UK receive when their role is made redundant. The amount is not a flat figure. It depends on your age during each full year of service, your length of continuous employment, and your weekly pay (subject to a statutory cap).
This calculator gives a practical estimate so you can plan ahead. It is useful for early financial planning, comparison with an employer offer, and understanding whether an enhanced redundancy package is above the legal minimum.
How statutory redundancy is calculated
The standard calculation uses these age-based multipliers for each full year of service:
- Under age 22: 0.5 week’s pay per full year
- Ages 22 to 40: 1 week’s pay per full year
- Ages 41 and over: 1.5 weeks’ pay per full year
Important statutory limits usually include:
- Only the last 20 years of service can be counted.
- Weekly pay is often limited by a government-set maximum weekly cap.
- You normally need at least 2 years of continuous service to qualify.
Who is usually eligible?
You are generally eligible for statutory redundancy pay if:
- You are classed as an employee (not self-employed contractor).
- You have at least two years of continuous service.
- Your job is genuinely redundant (for example, business closure, workplace closure, or reduced need for your role).
Who may not qualify
- Some categories of worker are excluded under specific rules.
- If dismissal is for misconduct, statutory redundancy pay may not apply.
- If you unreasonably refuse suitable alternative employment offered by your employer, entitlement can be affected.
Example calculation
Suppose someone is age 45, has 10 full years of service, and weekly pay of £750. If a weekly cap of £700 is applied:
- Years aged 35–40: 6 years × 1 week = 6 weeks
- Years aged 41–44: 4 years × 1.5 weeks = 6 weeks
- Total = 12 weeks of capped pay
- Estimated statutory payment = 12 × £700 = £8,400
Practical tips before accepting a redundancy package
- Ask HR for a written breakdown showing how your amount was calculated.
- Check your contract and staff handbook for enhanced redundancy terms.
- Confirm whether notice pay, holiday pay, bonus, and commission are treated separately.
- Keep records of start date, pay slips, and any changes in hours or pay.
- Take advice if anything looks incorrect or unclear.
Frequently asked questions
Is statutory redundancy payment taxable?
In many cases, redundancy compensation can be tax-free up to a limit, while other elements such as pay in lieu of notice may be taxed. Tax treatment depends on what each payment element represents.
Does overtime count in weekly pay?
Weekly pay calculations can depend on your pay pattern and contractual terms. Some regular elements may count, but rules vary. If your pay is irregular, ask payroll for the method used.
What if my employer offers more than statutory pay?
That is common. Many organizations provide enhanced redundancy packages based on internal policy, collective agreements, or contracts. Enhanced terms should never reduce your legal minimum entitlement.
Final note
This page is an educational estimator, not legal advice. For an official figure, always verify the latest government rates and, where needed, consult your HR team, union representative, ACAS guidance, or an employment law professional.