redundancy calculator gov uk

Statutory Redundancy Pay Calculator (UK)

Use this quick estimator to calculate statutory redundancy pay using the GOV.UK method: age bands, full years of service, 20-year cap, and weekly pay cap.

Only full years count. Statutory calculation uses a maximum of 20 years.
This cap changes over time. Check current limits on GOV.UK.
This is an educational estimator, not legal advice. Employers may offer enhanced redundancy terms above the statutory minimum.

How the GOV.UK redundancy calculator works

If you are being made redundant in the UK, a common first question is: what is the minimum I should receive? The official method is based on three core inputs: your age, your complete years of service, and your weekly pay (subject to a legal cap).

The calculation is done year-by-year, because different age bands receive different multipliers. The maximum service counted is 20 years, and only full years are included.

Statutory multipliers by age

  • Under 22: 0.5 week’s pay for each full year
  • Age 22 to 40: 1 week’s pay for each full year
  • Age 41 and over: 1.5 weeks’ pay for each full year

Who normally qualifies?

In most cases, statutory redundancy pay applies to employees with at least 2 years of continuous service. If your service is under 2 years, the statutory amount is typically zero, though contractual, settlement, or enhanced offers might still be available.

What this calculator includes (and does not include)

Included

  • Age-band weighting per full year
  • 20-year statutory service cap
  • Weekly pay cap (editable input)

Not included

  • Notice pay (statutory or contractual)
  • Accrued but untaken holiday pay
  • Enhanced redundancy schemes
  • Potential tribunal awards or settlement terms

Example quick scenario

Suppose someone is age 45, has 12 full years of service, and earns £680 per week. The calculator applies the correct multiplier to each year by working backward from age 45 through each complete year of service. Years at age 41+ get 1.5 weeks, years at 22–40 get 1 week, and so on.

This often surprises people: two employees with the same service length can get different totals because their age profile across those years differs.

Common mistakes to avoid

  • Using monthly pay instead of weekly pay
  • Rounding up partial years of service (only full years count)
  • Ignoring the weekly statutory cap
  • Assuming statutory redundancy includes notice and holiday pay

Before signing any agreement

If your employer has provided a redundancy package, compare it with your statutory estimate. If the offer is enhanced, that can be positive—but review the full terms, especially any waiver of claims in a settlement agreement.

A practical checklist:

  • Get your service start date confirmed in writing
  • Confirm the weekly pay figure used
  • Check the current GOV.UK weekly cap rate
  • Request a written redundancy breakdown from HR
  • Take independent advice before signing final documents

Final note

This page gives you a clean, fast way to estimate minimum statutory redundancy pay in line with GOV.UK logic. Use it as a planning tool, then verify the final numbers against current official rates and your employment contract.

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