UK Redundancy Pay Calculator
Estimate your statutory redundancy pay using age bands, service years, and a weekly pay cap. This tool is for planning and education.
Statutory calculations typically use up to 20 years of service and age-weighted multipliers: 0.5, 1, or 1.5 weeks per year.
What is redundancy pay?
Redundancy pay is compensation paid to eligible employees when a role is no longer needed. In the UK, statutory redundancy pay is based on three things: your age, your weekly pay (subject to a legal cap), and your full years of continuous service (up to 20 years).
This page gives you a practical redundancy calculator so you can estimate your likely payout, compare scenarios, and make informed financial decisions before and after a job change.
How this redundancy calculator works
Age-weighted formula
Each full year of service is weighted differently depending on your age during that year:
- Under 22: 0.5 week’s pay per full year
- Age 22 to 40: 1 week’s pay per full year
- Age 41 and over: 1.5 weeks’ pay per full year
The calculator applies those weights backward from your current age across your service years and then multiplies by your capped weekly pay.
Service and pay limits
- Only full years of service are counted.
- Statutory calculations count a maximum of 20 years.
- Weekly pay is limited by a statutory cap (editable in the tool so you can update it).
- You generally need at least 2 years of continuous service for statutory redundancy pay eligibility.
Why an enhancement multiplier matters
Many employers offer more than the statutory minimum. That could be a flat uplift, an extra week per year, or a negotiated settlement package. The enhancement multiplier in this calculator helps you model those outcomes quickly.
Example: If your statutory estimate is £12,000 and your employer offers 1.5×, the projected package is £18,000.
Tax planning basics after redundancy
In many cases, part of a redundancy payment can be tax-free up to a threshold (commonly referenced as £30,000 in the UK for qualifying termination payments). This calculator includes a simple split between tax-free and potentially taxable portions so you can do rough planning.
Tax treatment can vary based on payment type (e.g., notice pay, holiday pay, bonuses), so always verify with payroll, HMRC guidance, or a qualified adviser.
Common mistakes people make
- Using monthly salary instead of weekly pay for statutory calculations.
- Counting part-years of service as full years.
- Ignoring the legal weekly cap.
- Assuming all redundancy money is automatically tax-free.
- Forgetting to include separate payments like unused holiday and notice pay.
How to use your estimate responsibly
Build a short runway plan
After using the calculator, compare your estimated payout to your essential monthly expenses. That gives you a rough “months of runway” number and helps you decide how urgently you need your next role.
Prepare documents early
- Request written breakdowns from HR (statutory, notice, holiday, ex-gratia).
- Check your contract and staff handbook for enhanced terms.
- Keep copies of final payslips and settlement letters.
Get advice when needed
If your situation is complex (part-time history, TUPE transfers, disputes over continuous service, or settlement agreements), legal or professional advice can make a big difference.
Final thoughts
A good redundancy calculator does more than produce one number. It helps you ask the right questions, prepare for negotiation, and reduce uncertainty at a stressful time. Use this estimate as a planning baseline, then confirm final amounts with your employer and current legal rules.