redundancy statutory calculator

What is statutory redundancy pay?

Statutory redundancy pay is the legal minimum payment many UK employees receive when their role is genuinely redundant. It is designed to provide a financial cushion while moving to a new role.

The amount is not based on your salary alone. Instead, it depends on three key factors:

• Your age during each year of service.
• Your number of full years of continuous employment.
• Your weekly pay, subject to the statutory weekly cap.

How this redundancy statutory calculator works

This calculator follows the standard UK statutory framework:

• 0.5 week’s pay for each full year of service when you were under age 22.
• 1 week’s pay for each full year of service when you were aged 22 to 40.
• 1.5 weeks’ pay for each full year of service when you were aged 41 or older.

It then multiplies your total statutory weeks by your weekly pay (or the weekly cap, if enabled).

Eligibility basics

In most cases, you need at least 2 full years of continuous employment with your employer to qualify for statutory redundancy pay.

• If service is less than 2 full years, statutory redundancy is usually £0.
• Only up to 20 years of service can be counted.
• The weekly pay figure used may be capped by law for the relevant year.

Worked example

Imagine you are 46, have 12 full years of service, and gross weekly pay of £800. If the weekly cap is £700 and cap is applied:

• Years under 22: 0
• Years aged 22–40: 6 years
• Years aged 41+: 6 years
• Total weeks = (6 × 1) + (6 × 1.5) = 15 weeks
• Pay used = £700 (capped)
• Estimated statutory redundancy pay = 15 × £700 = £10,500

Important assumptions and limitations

1) Full years only

Statutory redundancy normally counts complete years of service. Part years are not usually included in the legal minimum calculation.

2) Service cap of 20 years

Even if you worked longer, statutory calculations generally use a maximum of 20 years.

3) Weekly pay cap can change

Government updates can revise the weekly pay cap. This tool lets you edit that cap so you can match the correct period.

4) Enhanced employer packages are separate

Some employers offer redundancy terms above the statutory minimum. If your contract, policy, or union agreement has better terms, those may apply instead.

Practical checklist before relying on any estimate

• Confirm your exact redundancy date.
• Confirm your full continuous service years.
• Check your contract for enhanced redundancy terms.
• Verify the weekly statutory cap for that date.
• Request a written breakdown from HR.

Frequently asked questions

Does this include notice pay?

No. Notice pay is separate from statutory redundancy pay. You may be entitled to one, both, or different amounts depending on circumstances.

Does tax apply to redundancy money?

Tax treatment can vary by payment type and threshold. This page is for gross estimation, not tax advice.

What if my weekly pay is below the cap?

Then your actual weekly pay is used. The cap only reduces the value when your weekly pay is above it.

Bottom line

A statutory redundancy estimate gives you a useful baseline for planning. Use the calculator above to quickly model your likely legal minimum, then compare it with your contract and HR documentation for the final figure.