Statutory Redundancy Pay Calculator 2026
Estimate your statutory redundancy entitlement based on your age, weekly pay, and years of continuous service. Understand your UK employment rights instantly.
Estimate Your Redundancy Entitlement
Enter your details below to calculate your estimated statutory redundancy pay. This tool applies the official UK government calculation method.
Your Redundancy Estimate
Based on current UK statutory guidelines
How Statutory Redundancy Is Calculated
The UK government uses a specific formula based on your age during each year of employment to determine your redundancy entitlement.
Check Eligibility
You must be an employee with at least 2 years of continuous service. The calculation only considers up to a maximum of 20 years of service.
Apply the Weekly Pay Cap
Your gross weekly pay is capped at a statutory maximum (e.g., £700). If you earn more than this, the calculation will only use the capped amount.
Calculate Age Multipliers
For each year of service, you are awarded:
• 0.5 week’s pay for each year under age 22.
• 1 week’s pay for each year aged 22 to 40.
• 1.5 weeks’ pay for each year aged 41 and older.
Determine Total Entitlement
Multiply your total awarded weeks by your capped weekly pay. The maximum possible statutory award is 30 weeks’ pay (e.g., 20 years × 1.5 weeks).
Statutory Redundancy Rules & Limits
Key limits and rules that govern statutory redundancy pay calculations in the UK.
| Rule / Limit | Detail | Impact on Calculation |
|---|---|---|
| Minimum Service | 2 full years | Less than 2 years of continuous service results in £0 statutory redundancy pay. |
| Maximum Service Counted | 20 years | Any years of service beyond 20 are ignored for the statutory calculation. |
| Statutory Weekly Pay Cap | £700 (subject to annual review) | Even if your actual weekly pay is £1,000, only £700 is used in the formula. |
| Maximum Total Award | 30 weeks’ pay | Achievable only by someone aged 41+ with 20 years of service (20 × 1.5 = 30). |
| Tax Status | 100% Tax-Free | Statutory redundancy pay does not count as taxable income and does not affect your Personal Allowance. |
Redundancy Pay FAQ
Answers to the most frequently asked questions about UK redundancy entitlements, employment rights, and severance.
Statutory redundancy pay is calculated based on your age, length of continuous service (up to a maximum of 20 years), and your weekly pay (subject to a statutory cap). You get 0.5 week’s pay for each year under 22, 1 week’s pay for each year between 22 and 40, and 1.5 weeks’ pay for each year 41 and older.
No, statutory redundancy pay is completely tax-free. Furthermore, the first £30,000 of any enhanced (non-statutory) redundancy payment is also tax-free.
The maximum statutory redundancy pay is determined by the statutory weekly pay cap (e.g., £700 as of recent years, subject to annual government updates) multiplied by the maximum of 30 weeks. This results in a maximum of around £21,000, though this cap is reviewed every April.
No. To be eligible for statutory redundancy pay in the UK, you must have been continuously employed by the same employer for at least 2 full years.