Precision Utility

Redundancy Pay Calculator UK 2026/27 — Statutory & Enhanced

Weekly Pay Cap

£751

Tax-Free Limit

£30,000

Redundancy pay calculator built for UK employees facing redundancy. Enter your age, years of continuous service and annual salary to calculate your statutory redundancy entitlement instantly. The calculator uses current HMRC rules and the 2026/27 statutory weekly pay cap of £751 to show your redundancy pay, notice pay and total package — including whether any amount is taxable.

Your Details

Age at Redundancy

years

1865

Years of Continuous Service

years

030

Annual Salary

£0£250k

Statutory Redundancy Pay

£0

Notice Pay

£0

Total Package

£0

Tax-Free Amount

£0

Taxable Amount

£0

payments

Weekly Pay (Capped)

£0

calendar_month

Service (Capped at 20)

0 years

notifications

Notice Period

0 weeks

verified

Multiplier Used

—

Age Bracket	Multiplier	Years	Amount

How the redundancy pay calculator works

Enter your age at the date of redundancy, your total years of continuous service with the same employer, and your annual salary. The calculator converts your salary to a weekly figure and caps it at the 2026/27 statutory maximum of £751 per week.

Years of service are capped at 20 for the statutory calculation. For each year of qualifying service, the calculator applies a multiplier based on your age: half a week's pay for years worked under 22, one week's pay for years aged 22 to 40, and one and a half weeks' pay for years aged 41 or over.

The simplified calculation uses your current age bracket for all qualifying years. Notice pay is calculated separately at one week per year of service, with a minimum of one week and a maximum of 12 weeks.

Your total redundancy package combines statutory redundancy pay and notice pay. The first £30,000 of redundancy pay is tax-free under HMRC rules — any excess is shown as the taxable amount.

What you need to know about UK redundancy pay

Statutory redundancy pay is a legal entitlement for employees who have been continuously employed for at least two years and are being made genuinely redundant. Your employer must pay this as a minimum, though many offer enhanced packages above the statutory amount.

The key figures for the 2026/27 tax year are:

Weekly pay cap: £751 — your weekly pay is capped at this amount regardless of actual earnings
Maximum service: 20 years — only the most recent 20 years of continuous employment count
Under 22: half a week's pay for each full year of service
Age 22–40: one week's pay for each full year of service
Age 41 and over: one and a half weeks' pay for each full year of service
Tax-free threshold: the first £30,000 of redundancy pay is free from income tax

Notice pay is separate from redundancy pay. You are entitled to at least one week's notice for each year of service, capped at 12 weeks. Your employer can either let you work your notice period or pay you in lieu of notice.

For the latest statutory rates and guidance, see the official GOV.UK redundancy rights page.

Redundancy pay examples 2026/27

Three worked examples showing statutory redundancy calculations at different ages and service lengths.

5 years service, age 28, £30,000 salary

Weekly pay: £30,000 ÷ 52 = £576.92 (below £751 cap)

Age 22–40 multiplier: 1 week per year of service

Entitlement: 5 years × 0.5 weeks (under 22: 0) + 5 years × 1 week (22–28) = 2.5 weeks

Statutory redundancy pay: 2.5 × £576.92 = £1,442.31

Notice pay: 5 weeks × £576.92 = £2,884.62

Total package: £4,326.92. All under £30,000 tax-free threshold.

10 years service, age 42, £40,000 salary

Weekly pay: £40,000 ÷ 52 = £769.23 — capped at £751

Age 41+ multiplier: 1.5 weeks per year of service

Entitlement: 10 years × 1.5 weeks = 15 weeks

Statutory redundancy pay: 15 × £751 = £11,265

Notice pay: 10 weeks × £751 = £7,510

Total package: £18,775. All under £30,000 tax-free threshold.

20 years service, age 55, £50,000 salary (capped at £751/week)

Weekly pay: £50,000 ÷ 52 = £961.54 — capped at £751

Service capped at 20 years (statutory maximum)

Age 41+ multiplier: 1.5 weeks per year of service

Entitlement: 20 years × 1.5 weeks = 30 weeks

Statutory redundancy pay: 30 × £751 = £22,530

Notice pay: 12 weeks (capped) × £751 = £9,012

Total package: £31,542. The redundancy pay (£22,530) is under the £30,000 tax-free limit. Notice pay is taxed as income.

Frequently asked questions

Who qualifies for statutory redundancy pay in the UK?

You must have worked for your employer continuously for at least 2 years to qualify for statutory redundancy pay. You must also be classed as an employee — not a contractor or agency worker. The redundancy must be genuine, meaning your role is no longer needed.

Is redundancy pay taxable in the UK?

The first £30,000 of statutory redundancy pay is completely tax-free. Any amount above £30,000 is taxed as income at your marginal rate. Statutory redundancy pay alone rarely exceeds £30,000, but if your employer offers an enhanced package the excess may be taxable.

What is the £30,000 tax-free limit on redundancy pay?

HMRC allows the first £30,000 of any redundancy payment to be received tax-free. This includes statutory redundancy pay and any additional ex-gratia payments from your employer. Only the amount exceeding £30,000 is subject to income tax.

What is the weekly pay cap for redundancy calculation?

For the 2026/27 tax year, the statutory weekly pay cap is £751. Even if you earn more than this per week, your redundancy pay is calculated using £751 as the maximum weekly figure. The cap is reviewed by the government each year.

What happens if my employer cannot afford to pay redundancy?

If your employer is insolvent or refuses to pay, you can claim statutory redundancy pay from the government's Redundancy Payments Service. You must apply within 6 months of your employment ending. The government will pay the statutory amount and recover costs from the employer where possible.

How long do I have to claim redundancy pay?

You have 6 months from the date your employment ended to make a claim for redundancy pay. If your employer has not paid you within this period, you can apply to an employment tribunal. It is important to act promptly as late claims are rarely accepted.

How much redundancy pay am I entitled to?

Statutory redundancy pay is based on your age, years of service (capped at 20) and weekly pay (capped at £751 for 2026/27). You receive half a week's pay per year of service under age 22, one week's pay per year aged 22–40, and one and a half weeks' pay per year aged 41 and over. The maximum statutory payout is 30 weeks' pay, or £22,530 at the current cap.

Is redundancy pay tax-free?

The first £30,000 of redundancy pay is completely tax-free. This includes statutory redundancy pay and any enhanced ex-gratia payment from your employer. Only the amount above £30,000 is subject to income tax at your marginal rate. Statutory redundancy alone rarely exceeds £30,000, so most employees receive their full statutory entitlement tax-free.

What is the weekly pay cap for redundancy in 2026/27?

The statutory weekly pay cap for 2026/27 is £751. Even if you earn more than £751 per week (£39,052 per year), your redundancy pay is calculated using £751 as the maximum. This cap is reviewed each year by the government in line with inflation. Your employer may offer enhanced redundancy based on your actual salary, but the statutory calculation always uses the capped figure.