gov uk redundancy pay calculator

How the GOV.UK redundancy pay calculation works

If your role is made redundant in the UK, statutory redundancy pay is calculated using a simple framework set out in employment law. The amount depends on three main inputs:

• Your age during each full year of service
• Your number of full years of continuous employment
• Your gross weekly pay, subject to a statutory weekly cap

The official GOV.UK redundancy calculator follows this same logic. This page gives you a practical estimate so you can plan ahead and compare outcomes quickly.

Statutory age bands and multipliers

For each qualifying full year of service, you receive a number of weeks' pay based on your age in that year:

• Under age 22: 0.5 week’s pay per year
• Ages 22 to 40: 1 week’s pay per year
• Ages 41 and over: 1.5 weeks’ pay per year

Your final statutory amount is these total weeks multiplied by your capped weekly pay.

Important limits you should know

1) Service limit

The calculation only uses up to 20 years of continuous service, even if you have worked longer.

2) Weekly pay cap

Your weekly wage is capped at the statutory maximum for the relevant period. If your actual weekly pay is above the cap, only the capped amount is used for statutory redundancy calculations.

3) Two-year eligibility rule

In most cases, you need at least 2 full years of continuous employment with your employer to qualify for statutory redundancy pay.

Example calculation

Suppose someone is 46, has 10 full years of service, and earns £820 per week. If the weekly statutory cap is £700:

• Years counted: 10 (under 20-year cap)
• Age 41+ years among those 10 years: 6 years × 1.5 = 9 weeks
• Age 22–40 years among those 10 years: 4 years × 1 = 4 weeks
• Total: 13 weeks of pay
• Weekly pay used: £700 (capped)
• Estimated statutory redundancy: £9,100

That is a statutory estimate only. Your contract may offer an enhanced redundancy package.

Statutory vs contractual redundancy pay

Many employers offer enhanced terms that are better than minimum legal requirements. You should always check your:

• Employment contract
• Staff handbook or policy documents
• Collective agreements (if applicable)
• Settlement or consultation paperwork

If an enhanced scheme applies, the higher contractual amount usually replaces or builds on statutory redundancy pay.

What this calculator does not include

Redundancy pay is only one part of your final package. Your total final pay may also include:

• Notice pay (worked or paid in lieu)
• Unused holiday pay
• Bonus/commission terms (depending on contract)
• Other payments agreed during consultation

The first £30,000 of genuine redundancy compensation may be tax-free in many cases, but treatment varies. Always confirm tax treatment with payroll or HMRC guidance.

Tips to use this tool accurately

• Use full years only (part years are ignored for statutory redundancy).
• Enter your age at the end date of employment.
• Update the weekly pay cap if rates change.
• Compare this estimate with the official GOV.UK calculator for final confirmation.

Frequently asked questions

Does length of service include probation?

Usually yes, if you were continuously employed. Continuous service is what matters, not just permanent status labels.

Can I get redundancy pay if I am offered another role?

Potentially, but if a suitable alternative role is offered and unreasonably refused, statutory redundancy entitlement can be affected.

What if my service is over 20 years?

For statutory redundancy, only the most recent 20 years are counted in the legal formula.

Is this legal advice?

No. This page is educational and intended as a planning calculator. For disputes or complex cases, consult ACAS, a union rep, or an employment solicitor.

Final word

A redundancy situation is stressful, but clear numbers help you make better decisions. Use the calculator above for a quick UK statutory redundancy estimate, then compare it with your employer documentation and official GOV.UK guidance before accepting final figures.