Statutory Redundancy Pay Calculator

Statutory redundancy pay is calculated using your age, length of service (up to 20 years), and weekly pay (capped at £751 from 6 April 2026). You earn 0.5 weeks' pay per year if you were under 22, 1 week's pay per year aged 22–40, and 1.5 weeks' pay per year aged 41 or over. The maximum statutory award is £22,530.

You qualify for statutory redundancy pay if you have at least 2 complete years of continuous employment with the same employer. The qualifying period runs from your start date to your dismissal date. Service before your 18th birthday does not count towards the calculation.

The first £30,000 of redundancy pay (statutory and contractual combined) is tax-free. Any amount above £30,000 is subject to income tax. National Insurance is not charged on redundancy pay.

The statutory weekly pay cap is £751 per week from 6 April 2026 under the Employment Rights (Increase of Limits) Order 2026. If your actual gross weekly pay exceeds £751, the statutory calculation uses £751. The cap is uprated annually, usually from 6 April each year.

A maximum of 20 complete years of continuous employment counts towards statutory redundancy pay. Years of service beyond 20 are ignored. Service before your 18th birthday is also excluded under Employment Rights Act 1996, s.162(3).

Statutory redundancy pay is the legal minimum. Your employment contract, collective agreement, or employer policy may provide for enhanced redundancy pay on top of the statutory amount. This calculator shows the statutory minimum only. If your employer offers an enhanced package, the first £30,000 of the total (statutory plus contractual) remains tax-free.