Redundancy pay calculator

Made redundant after 2 years' service? You're entitled to a statutory payment based on your age, length of service and weekly pay. For dismissals on or after 6 April 2026, weekly pay is capped at £751 and the maximum total is £22,530.

Statutory redundancy pay

2026/27

up to 30 weeks' pay, week capped at £751

Per full year of service: 1.5 weeks aged 41+, 1 week aged 22–40, half a week under 22. Max 20 years counted. Tax-free up to £30,000.

How the formula works

Counting back from your dismissal date, each of your last 20 full years of service earns:

Weeks of pay per year of service, by your age during that year
Age during the year	Weeks of pay
41 and over	1.5
22 to 40	1.0
Under 22	0.5

Multiply the total weeks by your gross weekly pay, capping the week at £751 (£783 in Northern Ireland). The theoretical maximum is 20 × 1.5 × £751 = £22,530. Redundancies before 6 April 2026 use the previous year's lower cap.

Statutory redundancy pay is the floor: your contract may promise enhanced redundancy terms on top (NHS staff — see the NHS redundancy calculator, which pays a month per year).

Common questions

Is redundancy pay taxable?

Statutory redundancy pay is tax-free, and combined redundancy payments (statutory + enhanced + ex-gratia) are tax-free up to £30,000. Above that, income tax applies — see redundancy pay and tax.

Do I get redundancy pay with under 2 years' service?

No statutory payment — but you're still entitled to your notice period (or pay in lieu), accrued holiday, and a fair selection process.

What if my employer is insolvent?

You can claim statutory redundancy pay, notice pay, and up to 8 weeks' wage arrears from the government's Insolvency Service (RP1 form), subject to the same weekly cap.

Does voluntary redundancy get statutory pay?

Yes — volunteering for a genuine redundancy situation doesn't reduce the statutory entitlement, and enhanced packages for volunteers are common. The calculator applies equally.

Which years count if I'm 43 but spent most of my service under 41?

Each year is banded by your age during that year, counting back from dismissal — so a 43-year-old with 10 years gets 2 years at 1.5 weeks and 8 at 1 week, not 10 × 1.5.

Sources for the figures on this page

Last checked 3 July 2026

How we keep these current: methodology & update policy.