Redundancy Pay Calculator

How this UK redundancy pay calculator works

This calculator estimates statutory redundancy pay for Great Britain using complete years of service, age at redundancy, and average weekly pay. It counts back from the redundancy date, caps service at 20 years, and applies the statutory weekly pay cap for the selected redundancy date.

Formulas

capped_weekly_pay = min(average_weekly_pay, statutory_weekly_cap)
counted_years     = min(complete_service_years, 20)
entitlement_weeks = under_22_years * 0.5 + age_22_to_40_years * 1.0 + age_41_plus_years * 1.5
statutory_pay     = entitlement_weeks * capped_weekly_pay
total_package     = statutory_pay + enhanced_redundancy_pay
tax_free_amount   = min(total_package, 30000)

Official source assumptions checked

GOV.UK says statutory redundancy pay normally applies to employees with at least 2 years of continuous service. The age bands are half a week for each full year under 22, one week for each full year from age 22 to 40, and one and a half weeks for each full year age 41 or older. Service is capped at 20 years. For redundancies on or after 6 April 2026, weekly pay is capped at £751 and maximum statutory redundancy pay is £22,530.

What this tool does not include

It does not decide whether a redundancy is fair, whether suitable alternative employment was reasonably refused, whether Northern Ireland rates differ, whether the employer is insolvent, or how Post-Employment Notice Pay affects tax. It also does not replace the written statement your employer must provide showing how the redundancy payment was calculated.

References

• GOV.UK statutory redundancy pay
• GOV.UK calculate your statutory redundancy pay
• GOV.UK redundancy pay for employers
• GOV.UK working out weekly pay
• GOV.UK tax on termination payments

FAQ

Who qualifies for statutory redundancy pay?

You normally need to be an employee with at least 2 complete years of continuous employment and be dismissed by reason of redundancy. Some categories and situations are excluded, and suitable alternative work can affect entitlement.

Why does the calculator count years by age band?

Statutory redundancy pay is not a single multiplier based only on your current age. Each complete year of service is assigned to an age band, counted back from the redundancy date, then multiplied by 0.5, 1.0, or 1.5 weeks of capped weekly pay.

What weekly pay should I enter?

Use average weekly pay over the 12 weeks before the day you got redundancy notice. If pay varies, GOV.UK guidance explains how the 12-week average is worked out and when contractual overtime, bonus, or commission can count.

Is redundancy pay tax-free?

Qualifying redundancy and enhanced redundancy payments are usually tax-free up to a combined £30,000. Notice pay, holiday pay, unpaid wages, and some other termination amounts can be taxed differently.

Does this include enhanced redundancy packages?

You can enter a fixed enhanced redundancy amount to add to the statutory estimate. The tool does not interpret employer formulas such as one month per year of service; calculate that extra amount from your policy first, then enter it.