Redundancy Pay Calculator
Your statutory minimum entitlement under the 2026/27 rules — using your actual age in each year of service, not a flat average.
How is UK statutory redundancy pay calculated?
Statutory redundancy pay is based on your age during each year of service, your length of service (capped at your most recent 20 years), and your weekly pay (capped at £751 for 2026/27). The rate per year of service is half a week's pay under age 22, one week's pay from 22 to 40, and one and a half week's pay at 41 or older — and because your age can cross a band partway through your career, this calculator works out your age year-by-year rather than applying a single flat rate to your whole service, which is what many simpler calculators do. You need at least 2 years' continuous service to qualify. The first £30,000 of combined statutory and contractual redundancy pay is tax-free.
Frequently asked questions
What is the statutory redundancy pay weekly cap for 2026/27?
£751 a week from 6 April 2026. If your actual average weekly pay is higher, the calculation still uses £751; if it's lower, your real average weekly pay is used instead.
How many years of service count toward redundancy pay?
Your most recent 20 years of continuous service, even if you've worked longer than that — only full years count, and you need at least 2 years' continuous service to qualify at all.
Is redundancy pay taxed?
The first £30,000 of combined statutory and contractual redundancy pay is tax-free. Amounts above that are taxable, and other payments like notice pay (PILON) or accrued holiday pay are taxed separately as normal income.
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