Statutory Redundancy Entitlement Calculator (UK Model)
Use this tool to estimate statutory redundancy pay based on age, years of continuous service, and weekly pay. It uses the standard UK age-banded rules and a configurable weekly pay cap.
Important: This is an estimate only and not legal advice. Final redundancy pay can vary depending on contract terms, local law changes, collective agreements, and tribunal outcomes.
What this redundancy calculator does
A redundancy entitlement calculator helps you quickly estimate what a fair statutory payout could look like if your role is made redundant. Instead of guessing, you can use a clear formula and get a number grounded in service length, age bands, and weekly earnings.
This page uses a UK statutory-style model where:
- Service is capped at 20 years for statutory calculations.
- Each year of service is weighted by your age during that year.
- Weekly pay may be capped (if you choose to apply the cap).
How statutory redundancy pay is usually calculated
1) Count eligible years of service
Only full years of continuous service are counted. In statutory calculations, there is generally a maximum number of years that can be included. This calculator applies a 20-year cap.
2) Apply age bands to each year
Each completed year receives a multiplier:
- Under age 22: 0.5 week’s pay per year
- Ages 22 to 40: 1 week’s pay per year
- Age 41 and over: 1.5 weeks’ pay per year
3) Multiply total weeks by weekly pay
The total weighted weeks are multiplied by your weekly pay. If a statutory pay cap applies, your weekly pay is limited to that cap for this part of the estimate.
What is not included in this estimate
Redundancy entitlement is only one part of your final leaving package. Your final payment may also include:
- Notice pay (worked or paid in lieu)
- Accrued but unused annual leave
- Long service leave (where applicable)
- Contractual severance above statutory minimums
- Bonuses, commissions, or share-related entitlements (if specified in your contract)
Tax treatment can also differ between components. A statutory redundancy estimate does not automatically equal the exact net amount you will receive in your bank account.
Who should use a redundancy entitlement calculator?
- Employees reviewing a proposed redundancy package
- Managers preparing initial internal estimates
- HR teams creating transparent communication for staff
- Advisers helping clients compare statutory minimums vs contractual terms
Practical tips before accepting a redundancy offer
Check your documents
Review your employment contract, staff handbook, and any redundancy policy. Some employers offer enhanced redundancy terms that exceed statutory minimums.
Confirm your service dates
A small difference in start date or continuity can change the payout. Confirm your official continuous service period in writing.
Request a written breakdown
Ask for a line-by-line statement showing statutory redundancy, notice, leave accrual, and any ex-gratia payment. This makes it easier to verify accuracy.
Get professional advice for complex cases
If you have variable pay, TUPE transfers, periods of parental leave, or disputes over continuous service, consider speaking with HR, a union representative, or an employment solicitor.
Frequently asked questions
Is redundancy pay always taxed?
Tax treatment depends on local law and the payment type. Some components may have tax-free thresholds, while others are taxed as normal earnings.
Do part-time workers qualify?
Eligibility is usually based on employment status and continuous service, not full-time status. Part-time workers may still qualify for statutory redundancy pay.
What if my employer offers more than statutory pay?
That can happen. The statutory amount is typically a minimum floor. Enhanced company schemes can provide a larger payout.
Can this calculator replace legal advice?
No. It is designed for planning and education. Always rely on current law and professional advice for decisions with legal or financial consequences.