Redundancy Pay Calculator
Calculate your UK statutory redundancy entitlement. Updated for 2025/26 rates.
Your current age (or age at date of redundancy)
Full years with your current employer (maximum 20 count)
Your gross weekly pay before deductions (capped at £700 for statutory calculation)
You need at least 2 years of continuous service with your employer to qualify for statutory redundancy pay.
Quick Redundancy Pay Reference
| Scenario | Years | Statutory Pay |
|---|---|---|
| Age 25, £500/wk | 3 | £1,500.00 |
| Age 30, £600/wk | 5 | £3,000.00 |
| Age 35, £700/wk | 10 | £7,000.00 |
| Age 45, £700/wk | 10 | £8,750.00 |
| Age 45, £700/wk | 15 | £13,125.00 |
| Age 50, £700/wk | 20 | £18,375.00 |
| Age 55, £700/wk | 20 | £21,000.00 |
How Statutory Redundancy Pay Works
If you have been employed for 2 or more continuous years and your employer is making you redundant, you are entitled to statutory redundancy pay. The amount depends on three factors: your age, your length of service, and your weekly gross pay (subject to a cap).
The formula
Your service is broken into years, and each year is worth a different number of weeks depending on your age during that year:
Aged 22-40: 1 week's pay per year
Aged 41+: 1.5 weeks' pay per year
Only the most recent 20 years of service are counted. Your weekly pay is capped at £700 (2025/26 rate) even if you earn more.
Who qualifies?
You must be an employee (not a contractor, freelancer, or agency worker) with at least 2 years of continuous service. You must be genuinely redundant, meaning the employer is closing, the workplace is closing, or there is less need for employees to do your particular type of work.
What about tax?
Statutory redundancy pay is completely tax-free. If your employer offers an enhanced package, the first £30,000 of any redundancy payment (including the statutory amount) is tax-free. Only the portion above £30,000 is taxed as income. Payments in lieu of notice are treated separately and are taxable.
The weekly pay cap
The government sets a maximum weekly pay figure each year. For 2025/26, the cap is £700. Even if you earn £1,500 per week, your statutory redundancy is calculated using £700. This cap is reviewed annually and typically increases each April.