Precision Utility
How Much Redundancy Pay Will I Get? UK Calculator
Statutory redundancy requires at least 2 years continuous service: 0.5 week's pay per year under age 22, 1 week's pay per year aged 22–40, and 1.5 weeks' pay per year aged 41+ (capped at 20 years). The first £30,000 of redundancy is 100% tax-free.
Weekly Pay Cap
£751
Tax-Free Limit
£30,000
This calculator estimates statutory redundancy pay for England, Wales and Scotland (Great Britain), using the 2026/27 weekly cap of £751 and maximum payout of £22,530. Northern Ireland has separate statutory limits set by the Department for the Economy. Enter your age, full continuous years with your employer and annual salary. The applicable cap depends on your official dismissal date (Effective Date of Termination, or EDT), with annual rate changes on 6 April; this tool applies the Great Britain limits effective from 6 April 2026.
Your Details
I am years old.
Enter full continuous years with the same employer. Statutory redundancy pay requires at least 2 full years; under 2 years gives £0. Paid statutory notice normally still applies after 1 month of service (at least 1 week). This whole-year input cannot assess notice eligibility below 1 full year; calculate that separately.
Statutory Redundancy Pay
£0
Notice Pay
£0
Total Package
£0
Tax-Free Amount
£0
Taxable Amount
£0
Weekly Pay (Capped)
£0
Service (Capped at 20)
0 years
Notice Period
0 weeks
Multiplier Used
—
How the redundancy pay calculator works
Enter your age at the date of redundancy, your full continuous years of 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 Great Britain 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.
Each completed year uses your age during that year, counted back from your current age. At least 2 full continuous years with the employer are required for statutory redundancy pay; under 2 years gives £0. Statutory notice is separate: at least 1 week's paid notice normally applies after 1 month of service, then one week per full year from 2 years, capped at 12 weeks. This tool uses uncapped normal weekly pay for notice and only accepts full years, so notice entitlement below 1 year must be assessed separately.
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.
Great Britain redundancy limits and notice rules
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 following 2026/27 limits apply in England, Wales and Scotland (Great Britain) for dismissals from 6 April 2026. Northern Ireland has separate statutory limits set by the Department for the Economy. The cap depends on the official dismissal date (EDT); rates change annually on 6 April. Exact dates and statutory notice can affect the relevant date, so confirm the applicable rate where notice or payment in lieu crosses a rate change.
- Weekly pay cap: £751 — your weekly pay is capped at this amount regardless of actual earnings
- Maximum statutory payout: £22,530 (30 weeks × £751) in Great Britain
- 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. From 1 month to under 2 years of service, the statutory minimum is 1 week's notice. From 2 to 12 years, it is 1 week per full year, capped at 12 weeks. Your employer normally pays you through notice or makes a payment in lieu; a longer contractual notice period may apply.
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
5 completed years aged 23–27 give 5 weeks. Redundancy: £2,884.62. Five weeks of notice pay: £2,884.62. Total: £5,769.23. Notice pay is taxable earnings.
10 years service, age 42, £40,000 salary
9 completed years aged 32–40 plus 1 at age 41 give 10.5 weeks. Redundancy: 10.5 × £751 = £7,885.50. Uncapped notice pay: £7,692.31. Total: £15,577.81. Notice pay is taxable earnings.
20 years service, age 55, £50,000 salary (capped at £751/week)
6 completed years aged 35–40 plus 14 aged 41–54 give 27 weeks. Redundancy: 27 × £751 = £20,277. Uncapped notice pay for 12 weeks: £11,538.46. Total: £31,815.46. Notice pay is taxable earnings.
Frequently asked questions
Who qualifies for statutory redundancy pay in the UK?
Statutory redundancy pay normally requires employee status and at least 2 full continuous years of service with the same employer. With under 2 years, statutory redundancy pay is £0, although an enhanced contractual payment may still be available. Statutory notice is separate: after at least 1 month of service, employees normally receive at least 1 week's paid notice (or payment in lieu), including those with under 2 years. This whole-year calculator cannot assess notice eligibility for service below 1 full year. Its £751 weekly cap and £22,530 maximum are Great Britain limits for England, Wales and Scotland; Northern Ireland has separate limits set by the Department for the Economy.
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 dismissals from 6 April 2026, the Great Britain weekly pay cap is £751 and the maximum statutory redundancy payment is £22,530. These limits apply in England, Wales and Scotland. Northern Ireland has separate statutory limits set by the Department for the Economy. The applicable cap depends on your official dismissal date (Effective Date of Termination, or EDT), not the date you run this calculator or receive payment. Limits change annually on 6 April; this calculator uses the 2026/27 Great Britain limits.
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?
With at least 2 full continuous years of service as an employee, statutory redundancy pay is based on your age during each completed year, up to 20 years, and capped weekly pay. You receive half a week's pay per year under 22, one week per year aged 22–40, and one and a half weeks per year aged 41 or over. For 2026/27 in England, Wales and Scotland (Great Britain), weekly pay is capped at £751 and the maximum award is 30 weeks' pay, or £22,530. Northern Ireland has separate Department for the Economy limits. With under 2 years, statutory redundancy pay is £0; paid statutory notice normally still applies after 1 month of service.
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 2026/27 statutory weekly pay cap is £751 in England, Wales and Scotland (Great Britain), giving a maximum statutory payout of £22,530. Even if your weekly earnings are higher, this calculator uses the capped figure for redundancy pay. Northern Ireland has separate statutory limits set by the Department for the Economy. Check the limit applicable to your official dismissal date (EDT): rates change annually on 6 April, and this tool uses the Great Britain limits effective from 6 April 2026. Enhanced contractual redundancy may use actual salary.
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This estimate uses completed years and age in whole years; exact start, birth and termination dates can affect the statutory award. The £751 weekly cap and £22,530 maximum apply to Great Britain dismissals from 6 April 2026; Northern Ireland has separate Department for the Economy limits. The dismissal date (EDT) determines the applicable rate. Statutory redundancy requires 2 full continuous years. Paid statutory notice normally starts after 1 month, but this whole-year calculator cannot assess notice eligibility below 1 full year; enhanced contractual packages also require a separate calculation.