Statutory Redundancy Pay Calculator UK 2026/27
Calculate your minimum legal redundancy entitlement in seconds. Updated for the April 2026 weekly pay cap.
Under the Employment Rights Act 1996, employees with at least 2 years of continuous service are entitled to a statutory redundancy payment when they are made redundant. The amount depends on three factors: your age, your length of service (up to a maximum of 20 years), and your weekly pay (capped at £751 from April 2026).
The statutory formula applies the following multipliers per complete year of service:
- Under 22: half a week's pay for each full year
- Age 22–40: one week's pay for each full year
- Age 41 and over: one and a half weeks' pay for each full year spent entirely at 41 or over
This calculator gives you the statutory minimum. Your employer may offer an enhanced redundancy package — check your contract or staff handbook. If they offer less than the statutory amount, they are breaking the law.
Your Details
Age at date of redundancy
Must be 2+ years to qualify
Before tax and deductions. If pay varies, use your 12-week average.
Determines which weekly pay cap applies. Defaults to today if left blank.
How statutory redundancy pay works
Who qualifies
Employees who have worked for their employer continuously for at least 2 years are entitled to statutory redundancy pay if they are made redundant. Workers and self-employed contractors are not entitled.
An employee can lose the right to redundancy pay if they unreasonably turn down an offer of suitable alternative work from the same employer or an associated company.
The formula
For each complete year of service, the employee gets:
- Half a week's pay for each year when they were under 22
- One week's pay for each year when they were 22 or older, but under 41
- One and a half weeks' pay for each year when they were 41 or older
Service is counted back from the date the job ends, and only the last 20 years count. If the employee is given less than their statutory notice, or paid in lieu of it, that date is treated as the end of the statutory notice period, which can add a year of service. A week's pay is capped at £751 for redundancies on or after 6th April 2026, so the most statutory redundancy pay can be is £22,530.
How to use the calculator
- Enter the employee's age on the date of redundancy and their complete years of continuous service
- Enter their gross weekly pay, or their annual salary and the calculator will work out the weekly figure
- Add the redundancy date if you know it, so the right weekly pay cap is used
If the employee's pay varies, a week's pay is usually their average weekly pay over the 12 weeks before they were given notice of redundancy.
Tax, notice and other payments
The first £30,000 of a genuine redundancy payment is normally tax-free. Notice pay, including payment in lieu of notice, and pay for untaken holiday are taxed as normal earnings.
Statutory redundancy pay is a minimum. Many employers pay more under an enhanced scheme, and the employee is also entitled to their notice period, or pay in lieu of it.
Frequently asked questions
Who qualifies for statutory redundancy pay?
Employees with at least 2 years' continuous service who are genuinely made redundant. Workers and the self-employed do not qualify, and a dismissal for conduct or performance is not a redundancy.
How is statutory redundancy pay calculated?
For each complete year of service: half a week's pay for each year under age 22, one week's pay for each year aged 22 to 40, and one and a half weeks' pay for each year aged 41 or over. Only the last 20 years count, and a week's pay is capped.
What is the weekly pay cap for 2026/27?
£751 for redundancies on or after 6th April 2026. For redundancies before that date it was £719. If the employee earns more than the cap, the calculation uses the capped figure.
What is the maximum statutory redundancy pay?
£22,530: 20 years at one and a half weeks' pay, with a week's pay capped at £751.
Is redundancy pay taxable?
The first £30,000 of a genuine redundancy payment is normally tax-free. Anything above £30,000 is taxed. Notice pay and holiday pay are taxed as normal earnings, even when paid at the same time.
Can an employer pay less than statutory redundancy pay?
No. It is a legal minimum. Employers can pay more under an enhanced redundancy scheme, but not less.
What if an employee is offered another job instead?
If the employer, or an associated company, offers suitable alternative work, the employee is entitled to a trial period of 4 weeks in the new role. If they unreasonably turn down a suitable offer, they can lose their right to redundancy pay.
What if the employer does not pay?
The employee should make a written claim to the employer, or apply to an employment tribunal, within 6 months of the relevant date, which is normally the date the job ended. A tribunal can sometimes allow a claim made in the following 6 months. If the employer is insolvent, the employee can apply to the government's Redundancy Payments Service.
Is redundancy pay the same as notice pay?
No. Notice pay covers the notice period, whether it is worked or paid in lieu. Redundancy pay is a separate payment for losing the job. An employee who is made redundant is usually entitled to both.
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