How is statutory redundancy pay calculated?

Statutory redundancy pay is calculated using your age, weekly pay (capped at £719 for 2025/26) and complete years of service. You receive 0.5 weeks' pay per year under 22, 1 week per year aged 22–40, and 1.5 weeks per year aged 41 or over. Service is capped at 20 years.

Is redundancy pay taxable in the UK?

Statutory redundancy pay is tax-free up to £30,000. Any amount above this threshold is subject to income tax in the normal way. National Insurance is not payable on redundancy pay.

How many years do you need to qualify for redundancy pay?

You need at least 2 complete years of continuous employment with the same employer to qualify for statutory redundancy pay.

What is the maximum statutory redundancy pay in 2025?

The maximum statutory redundancy pay in 2026 is £19,290. This is based on 20 years of service, aged 41+, at the weekly pay cap of £719.

Finance & Employment

UK Redundancy Calculator – Calculate Your Statutory Pay

Calculate your statutory redundancy pay in seconds using UK employment law. Enter your age, weekly pay, and years of service for an instant result. Uses the 2024–25 statutory cap of £719/week.

Updated April 2026 · 2025/26 statutory rates

✅ Rates verified April 2026 · Sourced from HMRC, DWP & UK legislation · About our verification process

What Is Statutory Redundancy Pay?

Statutory redundancy pay is the minimum compensation you are legally entitled to receive if you are made redundant by your employer. You qualify if you have been continuously employed for at least two years. The amount depends on your age, your weekly pay (capped at £719 for 2024–25), and your complete years of service (up to a maximum of 20 years).

Statutory redundancy pay is tax-free up to £30,000. Any amount above that threshold is subject to income tax in the normal way.

How This Calculator Works

The calculator applies the statutory redundancy formula set by UK employment law. It multiplies your weekly pay (capped at the statutory maximum of £719/week for 2024–25) by a service multiplier based on your age and complete years of service. Employees under 22 receive 0.5 weeks' pay per year of service; those aged 22–40 receive 1 week per year; and those aged 41 and over receive 1.5 weeks per year. The total is capped at 20 years of service.

2024–25 statutory weekly pay cap: £719. If your actual weekly pay is higher, the calculation uses £719. This cap is reviewed each April by the government.

Factors That Affect Your Payout

Several factors determine your final redundancy entitlement:

Age band: Your multiplier changes at ages 22 and 41. If you fall into multiple bands across your service period, the calculator applies the correct rate to each portion of service.
Weekly pay cap: Your gross weekly pay is capped at £719 (2024–25). Commission, bonuses and overtime may or may not be included depending on your contract.
Complete years only: Only fully completed years of service count. Partial years are disregarded.
Enhanced pay: Your employer may offer more than the statutory minimum. This calculator shows the legal minimum only.

What to Do After You're Made Redundant

Once you know your redundancy entitlement, there are several practical next steps to consider. Check whether you are owed any outstanding holiday pay — this is separate from redundancy pay and calculated differently. Review your notice period entitlement, as you may be owed payment in lieu of notice (PILON). If your income drops significantly, you may also be eligible for Universal Credit.

If you believe your redundancy was unfair or the process was not followed correctly, you can raise a claim with an Employment Tribunal within three months of your dismissal date.