UK Statutory Redundancy Pay Calculator
Estimate statutory redundancy pay based on age, full years of service, and weekly pay.
This tool provides an estimate only. Actual entitlement can vary based on contract terms, enhanced employer schemes, and legal specifics.
How redundancy pay works in the UK
If you're being made redundant in the UK, statutory redundancy pay is normally based on three key factors: your age, your complete years of service, and your weekly pay (subject to a legal cap). This calculator is designed to help you get a quick estimate before speaking with HR, ACAS, or an employment adviser.
Who can usually claim statutory redundancy pay?
- You must generally be an employee (not self-employed).
- You need at least 2 complete years of continuous service.
- Your role must genuinely be redundant (for example, workplace closure or reduced need for your role).
Statutory redundancy formula explained
For each full year worked, you get a fraction or multiple of a week’s pay depending on your age during that year. A maximum of 20 years of service is counted under statutory rules.
| Age during each full year of service | Weeks' pay entitlement for that year |
|---|---|
| Under 22 | 0.5 week |
| 22 to 40 | 1 week |
| 41 and over | 1.5 weeks |
Weekly pay is typically capped by law in statutory calculations. Many employers offer enhanced redundancy packages above statutory minimums, but this depends on your contract, staff handbook, collective agreements, or internal policy.
Example calculation
Suppose someone is age 45 with 10 complete years of service and a weekly pay of £800. If the cap year is 2025/26 with a weekly cap of £719:
- Years aged 41+ may count at 1.5 weeks each.
- Years aged 22–40 may count at 1 week each.
- Weekly pay used in statutory calculation is capped at £719 (not £800).
The calculator handles this automatically and gives a band-by-band breakdown.
What this calculator does not include
- Notice pay: statutory or contractual notice periods are separate.
- Holiday pay: untaken annual leave is paid separately.
- Enhanced packages: employer-specific policies can exceed statutory minimums.
- Tax treatment: tax can vary depending on total termination package structure.
Frequently asked questions
Is redundancy pay taxable in the UK?
Parts of a termination package may be tax-free up to certain limits, while other parts are taxable. Because payroll treatment can vary, always confirm with your employer and check current HMRC guidance.
What if I have worked more than 20 years?
For statutory redundancy pay, only the most recent 20 complete years are counted. This calculator applies that rule automatically.
Can I get redundancy pay with less than 2 years of service?
You usually won't qualify for statutory redundancy pay below 2 complete years, but your contract may provide additional rights.
Before signing a settlement or redundancy agreement
- Ask for a written breakdown of all amounts (redundancy, notice, holiday, bonus, deductions).
- Check whether your employer uses statutory minimum or enhanced terms.
- Review your employment contract and staff policy documents.
- Consider speaking to ACAS, a union rep, or a qualified employment solicitor.
Use this redundancy calculator UK page as a practical starting point. For formal decisions, rely on your written employer terms and professional advice.