Redundancy Pay Calculator

Find out your statutory redundancy entitlement based on your age, years of service and weekly pay. See tax-free allowance, notice pay and your full leaving package — 2025/26 rates.

2025/26 statutory rates £30,000 tax-free threshold Notice, holiday & LG scheme included

Your Details

Local Government (England & Wales) Scheme
Under the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2006, local authority employees receive redundancy pay based on their actual weekly pay — with no weekly pay cap. The age-based multipliers (½, 1, 1½ weeks per year) are the same as statutory, but the maximum is 104 weeks' pay rather than 30. This calculator uses uncapped weekly pay for LG calculations.
18 – 80 Must be 18+ and employed 2+ years for statutory entitlement
0 – 40 Only full completed years count (max 20 for statutory)
£
£5,000 – £250,000 We'll calculate your weekly pay — capped at £719/wk for statutory
If your pay varies use an average of the last 12 weeks
Statutory: 1 wk/yr service up to 12 wks
Always taxable — calculated as days × (salary ÷ 260 working days)
£
Always taxable — not covered by the £30,000 threshold

Your Redundancy Package

Statutory Redundancy Pay
£0
Based on 0 weeks' pay
How your weeks are calculated:
£0 tax-free
£0 taxable
£0 weekly pay used
Statutory Redundancy Pay£0
Notice Pay (taxable income)£0
Estimated Total Package£0
Tax-Free Portion (up to £30,000)£0
Total Taxable via PAYE£0

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Enter your age, service length and salary above, then tap Calculate.

Worked Examples

All examples use 2025/26 statutory weekly pay cap of £719. Figures rounded to nearest pound.

Early Career — Age 28, 5 years, £26,000

Age at redundancy28
Complete years service5
Weekly pay (capped)£500
Rate: all years age 22–405 × 1.0 = 5 weeks
Statutory redundancy pay£2,500
Statutory notice (5 weeks)£2,500
Total package£5,000 — all tax-free

Mid-Career — Age 45, 15 years, £50,000

Age at redundancy45
Complete years service15
Weekly pay (capped at £719)£719
Age 41–45: 4 yrs × 1.56 weeks
Age 30–40: 11 yrs × 1.011 weeks
Statutory pay (17 wks)£12,223
Total package£12,223 — all tax-free

Long Service — Age 58, 20 years, £45,000

Age at redundancy58
Service (capped at 20)20 years
Weekly pay (capped at £719)£719
Age 41–58: 17 yrs × 1.525.5 weeks
Age 38–40: 3 yrs × 1.03 weeks
Statutory pay (28.5 wks)£20,492
Total package£20,492 — all tax-free

Local Government Scheme — Worked Examples

All LG examples use actual uncapped weekly pay. Statutory figures shown for comparison using the 2025/26 £719/wk cap. Figures rounded to nearest pound.

Social Worker — Age 45, 15 yrs, £52,000

Weekly pay (actual)£1,000
Age 41–45: 4 yrs × 1.56 weeks
Age 30–40: 11 yrs × 1.011 weeks
LG pay (17 wks × £1,000)£17,000
Statutory pay (17 wks × £719)£12,223
LG advantage+£4,777 — all tax-free

Council Manager — Age 55, 20 yrs, £70,000

Weekly pay (actual)£1,346
Age 41–55: 14 yrs × 1.521 weeks
Age 35–40: 6 yrs × 1.06 weeks
LG pay (27 wks × £1,346)£36,346
Statutory pay (27 wks × £719)£19,413
LG advantage+£16,933
Tax position£30,000 tax-free + £6,346 taxable

Director of Services — Age 60, 20 yrs, £90,000

Weekly pay (actual)£1,731
Age 41–60: 19 yrs × 1.528.5 weeks
Age 39–40: 1 yr × 1.01 week
LG pay (29.5 wks × £1,731)£51,064
Statutory pay (29.5 wks × £719)£21,211
LG advantage+£29,853
Tax position£30,000 tax-free + £21,064 taxable

⚠️ The LG scheme is discretionary — your employer can choose to pay anything between the statutory minimum and the LG maximum. Check your council's redundancy policy or speak to your union (Unison, GMB, Unite) before redundancy is confirmed.

Statutory Rates & Rules at a Glance

Weekly Pay Cap by Tax Year
Tax YearWeekly CapMax Statutory Pay
2025/26£719£21,570
2024/25£643£19,290
2023/24£643£19,290
2022/23£571£17,130
2021/22£544£16,320
Weeks' Pay by Age Band
Age During Service YearWeeks Per Year
Under 22½ week
22 to 401 week
41 and over1½ weeks
Maximum 20 years of service. Maximum 30 weeks' pay.
Statutory Minimum Notice Periods (Employment Rights Act 1996)
Continuous ServiceMinimum NoticeNotes
Under 1 monthNoneNo statutory entitlement
1 month to 2 years1 weekQualifies for notice, not redundancy pay
2 to 12 years1 week per yearRedundancy pay entitlement begins at 2 years
12+ years12 weeks (capped)Maximum statutory notice is 12 weeks

Statutory vs Local Government Scheme

Key Differences at a Glance
FeatureStatutory SchemeLocal Government Scheme
Weekly pay cap£719/wk (2025/26)No cap — actual pay used
Maximum weeks' pay30 weeks104 weeks
Maximum service counted20 years20 years
Age multipliers½ / 1 / 1½ per year½ / 1 / 1½ per year
£30,000 tax-free limitYesYes
Employer discretionStatutory minimum onlyCan pay less than max but not below statutory minimum
Legal basisEmployment Rights Act 1996LG (Early Termination) Regulations 2006

The Local Government scheme applies to employees of local authorities, fire authorities, and certain other public bodies in England and Wales. Scottish and Northern Irish local government workers may have different arrangements — check with your employer or union.

Key Rules to Know

You Must Have 2+ Years' Continuous Employment

Statutory redundancy pay only applies if you have at least two years' continuous service with the same employer. If you have less than two years you have no legal entitlement to statutory redundancy pay, though your employer may still choose to make a payment voluntarily.

The £30,000 Tax-Free Limit Covers Redundancy Pay — Not Notice Pay

Statutory and enhanced redundancy payments are tax-free up to £30,000 (combined). However, notice pay — whether you work it or receive it as pay in lieu of notice (PILON) — is treated as normal employment income and is fully taxable under PAYE. This distinction is important when calculating your net package.

Weekly Pay Cap Applies to Statutory Calculations Only

The £719/week cap (2025/26) applies only to the statutory redundancy calculation. If your employer offers enhanced redundancy — say, full salary rather than capped — the enhancement above the statutory amount is still tax-free as long as the total (statutory + enhancement) doesn't exceed £30,000.

Redundancy Pay Does Not Affect Your Benefits Entitlement Immediately

Since October 2013, redundancy payments are disregarded for the purpose of means-tested benefits (like Universal Credit) for the first 52 weeks. However, notice pay and any holiday pay owed are counted as income. Seek advice from Citizens Advice or GOV.UK if you are unsure about your specific situation.

Local Government Workers: The Scheme is Discretionary — Check Your Policy

The Local Government scheme sets a ceiling, not a guarantee. Your council or authority can choose to pay anywhere between the statutory minimum and the LG maximum of 104 weeks' uncapped pay. Many authorities pay a standard enhanced amount set by their own HR policy. Always check your employment contract, your authority's redundancy policy, or consult your union representative (typically Unison, GMB or Unite) before your redundancy is agreed.

The LG scheme applies to employees of local authorities, fire and rescue authorities, police support staff, and certain other public bodies in England and Wales. Scotland and Northern Ireland have separate arrangements.

Frequently Asked Questions

What qualifies as redundancy?
Redundancy occurs when your employer needs to reduce their workforce, close a workplace, or no longer requires the work you do. It must be genuine — using redundancy as a pretext for dismissal for another reason is unlawful. Valid redundancy situations include: the business closing entirely, your particular workplace closing, or the job you do ceasing to exist (due to restructuring, automation, etc).
Can my employer offer less than statutory redundancy pay?
No. Statutory redundancy pay is your legal minimum entitlement. Your employer cannot pay you less than the statutory amount if you qualify (2+ years' service, over 18, dismissed by reason of redundancy). However, they can choose to offer more — many employers offer enhanced packages through a contractual redundancy policy or negotiation.
Is redundancy pay taxable?
Statutory redundancy pay is tax-free up to £30,000. Enhanced redundancy payments are also tax-free within the same £30,000 limit. Any amount above £30,000 is taxed at your marginal rate as employment income and is also subject to National Insurance. Notice pay (whether worked or paid as PILON) is always taxable as normal income regardless of the £30,000 threshold.
Do I need to pay National Insurance on redundancy pay?
No NI is due on the first £30,000 of redundancy pay (the same threshold as Income Tax). Amounts above £30,000 are subject to both Income Tax and Class 1 employee NI at your normal rate. Notice pay is always subject to full NI deductions as it is treated as employment earnings.
What if my employer cannot afford to pay redundancy?
If your employer is insolvent and cannot pay, you can claim your statutory redundancy pay directly from the Government's National Insurance Fund via the Redundancy Payments Service (part of the Insolvency Service). Claims are made online at GOV.UK. You may also be able to claim unpaid wages, notice pay and holiday pay through this route.
Does my age still affect redundancy pay now that the default retirement age is abolished?
Yes — the weekly pay multipliers (0.5, 1.0 and 1.5) based on age during each year of service remain in effect under the Employment Rights Act 1996. The Equality Act 2010 abolished the default retirement age of 65 and prevents age discrimination, but the age-related redundancy multipliers are a specific statutory exception. Older workers with long service typically receive more.
Can I claim redundancy if I'm made part-time?
If your employer significantly reduces your hours without your agreement, this may constitute a redundancy situation and you may be able to claim. Alternatively, if the change is so significant it amounts to a breach of contract, you could claim constructive dismissal. The situation depends on the specific circumstances — take advice from ACAS or a solicitor before acting.
How long do I have to claim redundancy pay?
You have 6 months from the date of dismissal to make a claim to an Employment Tribunal if your employer refuses to pay statutory redundancy. The tribunal can extend this to 12 months if there is a good reason for the delay. Act promptly — claims made outside these deadlines may be refused.
How is local government redundancy different from statutory?
Local authority employees in England and Wales are covered by the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2006. The key differences from the standard statutory scheme are: (1) your actual weekly pay is used with no upper cap — unlike the statutory scheme which caps weekly pay at £719 (2025/26); (2) the maximum payout is 104 weeks' pay rather than the statutory maximum of 30 weeks' pay. The age-based multipliers (½, 1, or 1½ weeks per year of service depending on age) remain the same. In practice, the biggest difference for higher earners is that the uncapped weekly pay can significantly increase the redundancy payment.

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