UK Redundancy Pay
Calculator 2026/27
Calculate your statutory redundancy pay entitlement based on your age, years of service and weekly pay. First £30,000 is tax-free.
Maximum 20 years counts for statutory redundancy
Capped at £643 for statutory calculation
How is statutory redundancy pay calculated?
Statutory redundancy pay is based on three factors: your age, your complete years of service (up to a maximum of 20 years), and your weekly pay (capped at £643 for 2026/27).
For each complete year of service, you receive:
- Half a week's pay for each year worked when you were under 22
- One week's pay for each year worked when you were aged 22 to 40
- One and a half weeks' pay for each year worked when you were 41 or older
The calculation works backwards from your current age. For example, if you are 43 with 5 years of service, 2 of those years were in the 41+ bracket (1.5 weeks each) and 3 were in the 22–40 bracket (1 week each), giving 3 + 3 = 6 weeks' pay.
Tax treatment of redundancy pay
The first £30,000 of redundancy pay is free from income tax. Any amount above £30,000 is taxable at your marginal income tax rate. National Insurance is not charged on any redundancy pay. Your employer should pay the tax-free element without deducting tax, though they may estimate and deduct tax on amounts over £30,000 via PAYE.
Related calculators
Statutory redundancy pay is based on your weekly salary — use the main salary calculator to confirm your annual equivalent. The income tax calculator shows your tax position on any redundancy pay above the £30,000 tax-free threshold. The take home pay calculator can help you model take-home at a new salary when you find your next role. If you believe you have overpaid tax in the year of redundancy, our tax rebate calculator estimates what you might reclaim. Our pension calculator can show the benefit of contributing some of your redundancy payment tax-efficiently. Facing redundancy while on maternity leave? Our maternity pay calculator covers your SMP entitlement.
Frequently asked questions
Statutory redundancy pay is based on age, length of service (capped at 20 years) and weekly pay (capped at £643 in 2026/27). You receive half a week's pay per year under 22, one week's pay per year aged 22–40, and one and a half weeks per year aged 41 and over. The multipliers are applied to each year at the age you were during that year of service.
The first £30,000 of redundancy pay is exempt from income tax and does not need to be declared on your tax return (unless HMRC specifically asks). Any amount above £30,000 is subject to income tax at your marginal rate. National Insurance is not payable on redundancy pay regardless of the amount.
You qualify if you are an employee (not self-employed or a worker), you have worked for your employer for at least 2 continuous years, and you have been genuinely made redundant. You do not qualify if you were dismissed for misconduct, you resigned, or you unreasonably refused a suitable alternative role.
Yes. The statutory redundancy pay is the legal minimum. Many employers offer enhanced redundancy packages that are higher — for example, not capping weekly pay at £643, using actual salary, or giving more weeks per year of service. These enhanced payments are set out in your employment contract or staff handbook.