Redundancy employment details
How to calculate statutory redundancy pay
Select the tax year, enter your age, complete years of service, and gross weekly pay to calculate your statutory redundancy pay with year-by-year accuracy. Optionally compare enhanced employer schemes and see how staying longer affects your entitlement.
Select tax year
Choose the tax year for your redundancy calculation (2024/25, 2025/26, or 2026/27). Rates may vary by year, so select the year your employment ends.
Select tax year
Choose the tax year for your redundancy calculation. Rates are currently the same for 2024/25, 2025/26, and 2026/27, but selecting the correct year ensures accuracy if rates change in the future.
Enter your age
Use your age on the employment termination date. The calculator will work backwards through each year of service to determine your age band for each year.
Enter complete service
Enter completed years with the employer. Statutory calculations count up to 20 years and require at least two years for eligibility. The calculator shows how many years fall into each age band.
Enter weekly pay
Enter gross weekly pay. The calculator applies the statutory weekly cap for your selected tax year before calculating the entitlement. If you earn more, only the capped amount is used for statutory calculations.
Optional: Enhanced scheme
If your employer offers an enhanced redundancy scheme, enter the weeks per year they provide. The calculator will compare statutory and enhanced amounts.
Review the results
The results show your statutory entitlement with age band breakdown, enhanced comparison (if entered), tax treatment, and scenarios showing how staying longer affects your entitlement.
Frequently Asked Questions
How is statutory redundancy pay calculated?
Statutory redundancy pay is calculated year-by-year based on your age during each year of service. You get 0.5 week's pay for each year you were under 22, 1 week's pay for each year aged 22-40, and 1.5 weeks' pay for each year aged 41 or older. Weekly pay is capped at £700 and maximum service counted is 20 years.
How much statutory redundancy pay can I get?
The maximum statutory redundancy pay is £21,000 for 2026/27. This is based on 20 years of service at the maximum weekly pay of £700, all in the highest age band (1.5 weeks per year).
Is redundancy pay taxable?
Statutory redundancy pay up to £30,000 is tax-free. Any amount over £30,000 may be subject to Income Tax. This applies to the total of all redundancy payments and termination payments. Payment in Lieu of Notice (PILON) is always taxable.
Who qualifies for redundancy pay?
You qualify for statutory redundancy pay if you're an employee who has been continuously employed for at least 2 years and you're being made redundant (not dismissed for other reasons).
What is the weekly pay cap?
For 2026/27, the weekly pay cap for redundancy calculations is £700. If you earn more than £700 per week, only £700 is used in the statutory calculation.
What is enhanced redundancy pay?
Enhanced redundancy pay is when your employer offers more than the statutory minimum. This might be a flat number of weeks per year of service, or a more complex scheme. Enhanced payments may have different tax treatment, so check your contract or HR team.
How does the calculator work out my age bands?
The calculator works backwards from your current age through each year of service. For each year, it determines your age at the end of that year and applies the appropriate multiplier (0.5, 1, or 1.5 weeks). This gives an accurate year-by-year breakdown.
Can I compare different scenarios?
Yes. The calculator shows what your entitlement would be if you stayed 1, 2, or 5 more years. This helps you understand the value of additional service, especially if you're approaching a higher age band.
Which tax year should I use?
Use the tax year in which your employment ends. For example, if you're made redundant on 15 October 2026, use the 2026/27 tax year (6 April 2026 to 5 April 2027). Currently, rates are the same for 2024/25, 2025/26, and 2026/27, but selecting the correct year ensures accuracy if rates change.
Have redundancy pay rates changed?
For 2024/25, 2025/26, and 2026/27, the rates are the same: £700 weekly cap, £21,000 maximum statutory redundancy pay, and £30,000 tax-free limit. The calculator supports all three tax years for future-proofing and consistency with other UK calculators.