UK Statutory Redundancy Pay Calculator

Statutory redundancy pay follows a fixed formula based on age, length of service and pay — but the weekly pay figure used in that formula is capped at a maximum the government resets every April. That's the one part no calculator can safely hardcode without going stale, which is why we point you to the official one for your final figure.

How the formula works

For each complete year of service (counting back a maximum of 20 years), you get a multiple of a week's pay based on your age during that year:

Add up the multiples across your qualifying years of service, then multiply by your weekly pay — capped at the government's current maximum weekly pay figure for redundancy calculations.

Eligibility

• You must be an employee (not self-employed or a contractor)
• You need at least 2 years of continuous service
• It must be a genuine redundancy situation, not another type of dismissal

Frequently asked questions

Am I eligible for statutory redundancy pay?

Generally yes, if you're an employee with at least 2 years of continuous service made redundant in a genuine redundancy situation.

Is redundancy pay taxed?

Statutory redundancy pay, and most redundancy payments up to £30,000 in total, are free of income tax and National Insurance.

What if my employer offers more than the statutory minimum?

That's enhanced (contractual) redundancy pay — the statutory amount is only the legal floor, and many employers offer more.

Why is there a weekly pay cap on this calculation?

The government sets a maximum weekly pay figure for this calculation, revised every 6 April. Above that cap, only the capped figure counts towards your statutory entitlement.

Does this apply in Northern Ireland?

Northern Ireland has its own, broadly equivalent redundancy legislation. This tool reflects the rules for England, Scotland and Wales.