gov.uk redundancy pay calculator

Statutory Redundancy Pay Estimator (UK)

Use this quick estimate to understand what statutory redundancy pay could look like based on GOV.UK rules.

Important: rates can change each tax year (usually April). Always confirm current limits on GOV.UK redundancy rights.

How statutory redundancy pay works in the UK

When a role is genuinely redundant, eligible employees may receive statutory redundancy pay. The core calculation is based on three things:

Your age during each full year of service
Your number of full years of continuous employment (capped at 20 years)
Your weekly pay (capped at the statutory weekly maximum)

This means two employees on the same salary can still receive different amounts if their age bands or years of service differ.

Who can usually claim statutory redundancy pay?

In most cases, you need at least 2 years of continuous service with your employer. Typical qualifying conditions include:

You are classed as an employee (not self-employed)
You have worked continuously for 2+ years
You are being made redundant (not dismissed for misconduct)

Even if you are not eligible for statutory redundancy pay, you may still have rights to notice pay, holiday pay, or contractual redundancy terms.

Calculation formula (GOV.UK style)

Weeks of pay per full year of service

0.5 week’s pay for each full year you were under 22
1 week’s pay for each full year from age 22 to 40
1.5 weeks’ pay for each full year age 41 and over

Key caps and limits

Maximum service counted: 20 years
Weekly pay used: your pay or the statutory cap, whichever is lower

Example

If someone is 45 at dismissal, has 10 full years of service, and earns £900/week while the cap is £719:

Years at age 41+ within those 10 years receive 1.5 weeks each
Any years at age 22–40 receive 1 week each
Weekly pay is reduced to £719 for statutory calculation

The calculator above handles this automatically and provides a year-by-year breakdown.

What this redundancy calculator includes

Age-banded statutory multipliers
2-year eligibility check
20-year service cap
Weekly pay cap adjustment
Estimated statutory payout in pounds

What it does not include

Enhanced contractual redundancy schemes
Tax treatment and payroll deductions
Complex breaks in service or TUPE edge cases
Legal disputes around whether redundancy is genuine

If your case is complex, speak to ACAS, your union rep, or an employment solicitor.

Before you rely on any estimate

This page provides an informational estimate, not legal advice. Always confirm your final entitlement through official channels and your employer’s HR documentation.

Check your contract for enhanced redundancy terms
Verify your exact continuous service start date
Confirm current statutory weekly cap on GOV.UK
Ask for a written redundancy calculation breakdown