Estimate your statutory redundancy money
Enter your details below to calculate an estimated UK statutory redundancy payment. This tool uses the standard age-banded formula and applies service/pay caps.
This is an estimate for planning purposes, not legal advice. Rules and yearly caps can change.
How redundancy money is usually calculated
In the UK, statutory redundancy pay is based on three main things: your age, your complete years of continuous service, and your weekly pay (subject to a statutory weekly cap). The formula is designed to give more weight to years worked at older ages.
Standard statutory formula
- 0.5 week’s pay for each full year worked when you were under 22
- 1 week’s pay for each full year worked when you were aged 22 to 40
- 1.5 week’s pay for each full year worked when you were 41 or older
Only complete years count, and statutory calculations usually cap service at 20 years. Your weekly pay used in the calculation is also capped at the legal weekly maximum in force at the time of redundancy.
What this redundancy money calculator includes
This calculator gives a clear estimate of statutory redundancy pay by applying age bands year-by-year. It also shows whether caps have reduced your total. That makes it useful for quick planning before speaking with HR, a union rep, or an employment adviser.
Inputs explained
- Age at redundancy date: Used to determine the correct multiplier for each year of service.
- Complete years of service: Statutory redundancy uses full years only.
- Gross weekly pay: Your normal weekly pay before deductions.
- Weekly pay cap: The legal maximum weekly pay allowed in statutory calculations.
Simple example
Suppose you are age 45, have 10 full years of service, and earn £900 per week. If the statutory weekly cap is £700:
- 5 qualifying years at age 41+ = 5 × 1.5 = 7.5 weeks
- 5 qualifying years at age 22–40 = 5 × 1 = 5 weeks
- Total = 12.5 weeks
- Weekly pay used = £700 (cap applied)
- Estimated statutory redundancy pay = £8,750
Important: redundancy package vs final pay
Redundancy money is only one part of what you might receive. Your final settlement can also include additional items that are separate from statutory redundancy pay.
Other amounts to check for
- Notice pay or payment in lieu of notice (PILON)
- Payment for untaken holiday
- Contractual redundancy enhancements
- Bonus, commission, or overtime owed under your contract/policy
- Pension contributions and benefits handling
Tax and deductions
In many UK cases, genuine redundancy compensation can be paid tax-free up to certain limits (commonly referenced as up to £30,000), while notice pay and normal earnings are typically taxed. The exact treatment depends on your situation and current HMRC rules, so always confirm with payroll or an adviser.
How to use your estimate wisely
Use this estimate as a planning number, not the final legal figure. If your employer offers an enhanced package, compare it with your statutory minimum. Ask for a written breakdown showing how every amount was calculated, including dates, caps, and tax treatment.
Before accepting an offer
- Request the calculation in writing
- Check your service start/end dates
- Confirm which weekly pay figure was used
- Review notice terms and holiday balance
- Get independent advice if anything seems unclear
Final thought
A redundancy process can feel stressful, but clarity helps. A reliable redundancy money calculator gives you a fast, objective starting point so you can ask better questions and make better decisions. Use the tool above, then validate the numbers with your official paperwork.