Redundancy Calculator (UK Statutory Estimate)
Use this tool to estimate statutory redundancy pay, optional notice pay, and total package value.
This is an educational estimate based on a UK-style statutory formula (0.5, 1.0, 1.5 weeks by age band, capped at 20 years). It is not legal, tax, or HR advice.
Why run a redundancy estimate early?
Uncertainty is expensive. When people hear the word “redundancy,” they often freeze and delay planning. A quick estimate gives you a realistic baseline and helps you make smarter decisions about savings, debt, and your timeline for finding a new role.
Even if your final package differs from this calculator, a structured estimate helps you ask better questions in HR meetings and negotiate from a position of clarity.
How this calculator works
1) Statutory weeks by age bracket
The calculation applies a common UK statutory approach for each completed year of service (up to 20 years):
- Under age 22: 0.5 week of pay per year
- Ages 22 to 40: 1.0 week of pay per year
- Ages 41 and over: 1.5 weeks of pay per year
2) Weekly pay cap
Statutory schemes usually cap weekly pay at a legal maximum. Keep the cap switched on for a conservative estimate. Turn it off only if your employer confirms an uncapped contractual package.
3) Optional notice pay and ex-gratia amount
The tool can add notice pay weeks and any extra discretionary compensation. This gives you a practical “total package” figure you can use for budget planning.
What this estimate includes and excludes
Included
- Age-banded redundancy weeks
- Service-year limit at 20 years (for statutory estimation)
- Optional pay cap
- Optional notice pay and ex-gratia compensation
Not included
- Holiday accrual/payout
- Pension effects and benefits continuation
- Tax treatment specific to your jurisdiction and contract
- Enhanced collective agreements or union-negotiated terms
How to use your result in real life
Build a 3-number plan
- Essential monthly spend: housing, food, transport, insurance
- Runway: total package divided by essential monthly spend
- Re-employment target: number of applications/networking conversations per week
If your runway is shorter than expected, focus immediately on cutting fixed costs and preserving cash. If your runway is comfortable, use the time to target roles with better long-term fit rather than rushing into a poor match.
Prepare your HR and legal questions
Bring a list to every conversation:
- How were service years counted?
- Is notice paid in lieu or worked?
- Is there an enhanced package beyond statutory?
- What is the exact tax treatment of each component?
- Will outplacement support, training budget, or references be provided?
Common mistakes to avoid
- Assuming gross redundancy pay equals spendable cash
- Ignoring benefit losses (healthcare, pension match, bonus eligibility)
- Waiting too long to update CV, LinkedIn, and recruiter outreach
- Overlooking contractual terms that differ from statutory minimums
Final note
Redundancy can feel personal, but it is often structural. Use this calculator to regain control: estimate, plan, and execute. If your case is complex, confirm details with HR, ACAS guidance, or a qualified employment solicitor.