Statutory Redundancy Payment Calculator (UK Estimate)
Enter your details to estimate statutory redundancy pay. This tool uses age bands, years of service, and a weekly pay cap.
Disclaimer: This calculator gives an estimate for UK statutory redundancy only. It does not include notice pay, holiday pay, bonuses, tax treatment, or enhanced contractual terms.
How redundancy payment is calculated
If you are being made redundant, one of the biggest questions is: How much redundancy pay should I receive? The answer depends on your age, your length of continuous service, and your weekly pay (subject to a legal cap for statutory calculations). This page gives you both a practical calculator and a clear explanation of the formula so you can sense-check your employer’s numbers.
UK statutory formula (simplified)
- 0.5 week’s pay for each full year worked while under age 22
- 1 week’s pay for each full year worked from age 22 to 40
- 1.5 weeks’ pay for each full year worked from age 41 and over
- A maximum of 20 years of service can be counted
- Weekly pay is usually limited by a statutory cap
What this calculator includes
This calculator is designed for fast planning and job-transition budgeting. It includes:
- Age-banded entitlement rules
- Service cap at 20 years
- Optional weekly pay cap toggle (on by default)
- A clear breakdown of how total weeks are built
What this calculator does not include
Real-life redundancy packages can be larger than statutory pay. Your final amount may also include:
- Enhanced redundancy terms in your contract, policy, or collective agreement
- Notice pay or pay in lieu of notice (PILON)
- Outstanding holiday pay
- Commission, overtime history, or benefits rules specific to your employer
- Tax treatment, if any part exceeds normal exemption limits
Step-by-step example
Imagine someone is age 46 at dismissal, has 12 full years of service, and earns £900 per week. If the statutory weekly cap is £700 and cap is applied:
- Years aged 41+ might count at 1.5 weeks each
- Earlier years aged 22–40 count at 1 week each
- Total “weeks owed” are multiplied by £700 (not £900) due to the cap
That gives a statutory estimate. If the employer has an enhanced scheme, the real payout could be higher.
Common mistakes people make
1) Using monthly salary instead of weekly pay
Statutory redundancy is based on weekly pay, so convert carefully. If you only know annual salary, divide by 52.
2) Counting part-years of service
The statutory method is based on complete years of continuous service. Part-years generally do not count in the same way.
3) Ignoring the legal weekly cap
If your weekly earnings are higher than the cap, statutory redundancy is still calculated from the capped amount unless an enhanced scheme applies.
4) Forgetting other payments
Redundancy pay is only one part of your exit package. Notice pay and unused holiday can make a meaningful difference to total cash received.
How to use this estimate in real life
- Budget planning: estimate how long your emergency fund plus redundancy can cover expenses
- Negotiation prep: compare statutory minimum with proposed employer package
- Document check: verify service dates, age timing, and weekly pay basis
- Career transition: build a realistic job-search runway
Redundancy checklist before signing
- Request a written breakdown of all components (redundancy, notice, holiday, bonuses)
- Confirm your start date and continuity of service are correct
- Check whether any enhanced terms apply from handbook or union agreement
- Ask for clarification on tax handling for each payment type
- Keep all correspondence and final payslip records
Frequently asked questions
Is statutory redundancy payment taxable?
Tax can depend on structure and total amount. Statutory redundancy is often treated differently from normal wages, but always confirm with current HMRC guidance or a qualified adviser.
Do I get redundancy pay if I have less than 2 years of service?
In many UK cases, statutory redundancy rights usually require at least 2 years of continuous service. Contractual terms may still offer additional rights.
Can my employer pay more than statutory redundancy?
Yes. Many employers offer enhanced packages, especially during large restructures or voluntary redundancy programs.
Why is there a 20-year cap?
Statutory redundancy law limits the countable service years to 20 for calculation purposes. Enhanced schemes may choose a different basis.
Final thoughts
A redundancy payment calculator is not just a number tool—it helps you make decisions with clarity during uncertainty. Use the estimate above as your baseline, then compare it with your employer’s final offer and documentation. If your case is complex, seek advice from HR, your union, ACAS, or a qualified employment adviser.