Estimate statutory redundancy pay
Use this UK-style estimator to quickly calculate a likely statutory redundancy payment based on age, complete years of service, and weekly pay.
This estimate is for informational purposes and does not include notice pay, unused holiday pay, enhanced employer terms, or tribunal outcomes.
How this gov redundancy calculator works
If you are checking a potential redundancy payment, the key figure most people want first is their statutory redundancy pay. This calculator follows the standard age-banded formula commonly used in government redundancy guidance in the UK.
The estimate is based on three core inputs:
- Your age
- Your full years of continuous employment with the employer
- Your gross weekly pay (subject to a statutory cap if applied)
Age bands used in statutory redundancy calculations
Each complete year of eligible service is counted differently depending on your age during that year:
- Under 22: 0.5 week’s pay per year
- Age 22 to 40: 1 week’s pay per year
- Age 41 and above: 1.5 week’s pay per year
Only up to 20 complete years of service can usually be counted for statutory redundancy pay.
What this estimate includes (and does not include)
Included
- Age-weighted service years
- Optional weekly pay cap
- Maximum statutory service years (20)
Not included
- Contractual enhancement schemes from your employer
- Payment in lieu of notice (PILON)
- Accrued but unused annual leave payments
- Tax treatment for larger settlement packages
- Special rules for fixed-term or atypical employment disputes
Step-by-step: using the calculator correctly
- Enter your current age in whole years.
- Enter only complete years of continuous service.
- Enter your gross weekly pay before deductions.
- Leave the pay cap switched on for a statutory-style estimate.
- Click Calculate and review the detailed breakdown.
Tip: If your employer offers enhanced redundancy terms, run a second comparison manually against your contract to see whether you are better off than the statutory baseline.
Worked examples
Example 1: Mid-career employee
A 35-year-old with 8 complete years and weekly pay of £500 receives mostly 1 week per year weighting. Because pay is below the cap, weekly pay is not adjusted.
Example 2: Long service over age 41
A 52-year-old with 24 years of service will only have 20 years counted for statutory purposes, and many of those years attract 1.5 weeks per year depending on age progression.
Example 3: Higher earners
If weekly pay is £1,100 and the cap is enabled at £700, the statutory estimate uses £700. This can significantly reduce the final statutory amount versus gross salary expectations.
Common mistakes people make
- Counting partial years of service as full years
- Using monthly salary instead of weekly gross pay
- Forgetting the weekly statutory cap
- Ignoring contractual enhancement terms
- Assuming the statutory result is the final settlement figure
Frequently asked questions
Is this the official government redundancy calculator?
No. This page is an independent calculator designed to mirror common statutory logic for educational planning. Always verify figures against current official guidance.
Does this tool account for tax?
No. Redundancy tax treatment can vary based on total package structure and jurisdictional rules.
Can I use this for enhanced redundancy schemes?
You can use the output as a baseline, but enhanced schemes may use different multipliers, caps, or service rules.
Final note
When redundancy is on the table, quick clarity matters. Use this gov redundancy calculator to get a practical estimate, then compare it with your contract, HR documents, and current legal guidance before making financial decisions.