Redundancy Pay Calculator UK 2026
Calculate your UK statutory redundancy pay instantly using official 2026 rates. Our free calculator shows exactly what you're entitled to based on your age, length of service, and weekly pay. Results include tax impact, detailed breakdowns, and downloadable reports.
Key Facts 2026
Maximum weekly pay used for statutory redundancy calculations (from April 2025)
Highest statutory redundancy pay possible (20 years × £719 × 1.5)
First £30,000 of redundancy pay is completely tax-free
You must have worked 2 complete years to qualify for statutory pay
Who Can Use This Calculator?
Employees Being Made Redundant
Calculate your statutory redundancy entitlement before your final day. Know your rights and check your employer's offer matches legal minimums.
Employers Planning Redundancies
Estimate redundancy costs for workforce planning. Calculate statutory minimums and budget for enhanced terms if offered.
HR Professionals
Verify redundancy calculations for multiple employees. Check your payroll calculations align with statutory requirements and contractual terms.
Anyone Planning Ahead
Understand what you'd receive if made redundant. Factor into financial planning and compare job offers with different redundancy terms.
Calculate Your Redundancy Pay
How the Redundancy Pay Calculator Works
Enter Your Details
Provide your employment start date, redundancy date, date of birth, and average weekly pay. The calculator needs these to apply the correct age-based multipliers.
Apply Age Multipliers
Your redundancy pay is calculated based on your age during each year of service: 0.5 weeks' pay (under 22), 1 week (22-40), or 1.5 weeks (41+).
Calculate Total Payment
We multiply your weekly pay (capped at £719 for statutory) by the total weeks earned across all age bands, up to a maximum of 20 years' service.
Show Tax Impact
The first £30,000 is tax-free. Any amount above this is subject to Income Tax at your marginal rate. We estimate net pay and provide a detailed breakdown.
Understanding UK Redundancy Pay 2026
Statutory redundancy pay is the legal minimum your employer must pay if you're made redundant after at least 2 years' continuous service. The amount depends on your age, length of service, and weekly pay, with specific multipliers applied to each year worked.
Age-Based Pay Multipliers
UK redundancy law uses three age bands with different multipliers. For each complete year of service: you get 0.5 weeks' pay for years worked under age 22, 1 week's pay for years aged 22-40, and 1.5 weeks' pay for years aged 41 or over. Your age at the start of each service year determines which multiplier applies.
Weekly Pay Cap and Maximum Payment
From 6 April 2025, weekly pay is capped at £719 for statutory calculations, regardless of actual earnings. This cap is reviewed annually. The maximum statutory redundancy payment is £21,570, achieved by someone aged 41+ with 20 years' service (20 × £719 × 1.5). Only complete years count - partial years are ignored. If you have over 20 years' service, only the most recent 20 count for statutory redundancy pay.
Tax Treatment
The first £30,000 of redundancy pay is tax-free, including both statutory and any enhanced contractual payments combined. Amounts above £30,000 are subject to Income Tax at your marginal rate but not National Insurance contributions. This makes redundancy pay more tax-efficient than regular salary. Consult HMRC guidance or a tax adviser if your payment exceeds this threshold.
Enhanced Redundancy Terms
Many employers offer enhanced redundancy terms above the statutory minimum. These might include removing the weekly pay cap, using higher age multipliers, counting all years of service beyond 20, or adding fixed amounts. Check your employment contract, staff handbook, or redundancy agreement. Enhanced terms are contractual obligations if documented.
💡 Important: Minimum Service Requirement
You must have worked for your employer continuously for at least 2 complete years to qualify for statutory redundancy pay. Service time starts from your first day at work. Breaks in employment may reset your continuous service unless covered by specific rules (TUPE transfers, maternity leave, etc.).
Calculating Weekly Pay
Weekly pay is your average gross earnings over the 12 weeks before you receive your redundancy notice. This includes basic salary, regular overtime, bonuses, and commission if they're part of your normal pay pattern. For irregular hours or pay, a 12-week average smooths out fluctuations. Employers must provide a breakdown if you request it.
| Age Band | Statutory Multiplier | Typical Enhanced |
|---|---|---|
| Under 22 | 0.5 weeks' pay | 0.75 - 1 week |
| 22 to 40 | 1 week's pay | 1.5 - 2 weeks |
| 41 and over | 1.5 weeks' pay | 2 - 3 weeks |
Real Redundancy Pay Examples
Example 1: Mid-Career Professional
Person: Sarah, Marketing Manager
Age: 38 years old
Service: 12 complete years
Weekly Pay: £850 (capped at £719)
Calculation: 12 years × 1.0 multiplier × £719 = 12 weeks
Statutory Payment: 12 × £719 = £8,628
Tax: £0 (under £30,000 threshold)
Sarah receives the full amount tax-free. Her actual weekly pay exceeds the cap, so statutory calculations use £719. If her employer offers enhanced terms with no cap, she'd receive £10,200 (12 × £850).
Example 2: Long-Service Employee
Person: James, Operations Director
Age: 52 years old
Service: 25 years (only 20 count)
Weekly Pay: £1,200 (capped at £719)
Calculation: 9 years (age 33-41) × 1.0 = 9 weeks + 11 years (age 42-52) × 1.5 = 16.5 weeks
Statutory Payment: 25.5 weeks × £719 = £18,334.50
Tax: £0 (under £30,000 threshold)
Despite 25 years' service, only the most recent 20 count. James worked backwards from age 52, so 11 years are in the 41+ band (1.5 multiplier) and 9 in the 22-40 band. Check our salary level checker to understand your earning potential.
Example 3: High Earner at Maximum
Person: Emma, Finance Director
Age: 55 years old
Service: 22 years (only 20 count)
Weekly Pay: £2,500 (capped at £719)
Calculation: 6 years (age 35-40) × 1.0 = 6 weeks + 14 years (age 41-54) × 1.5 = 21 weeks
Statutory Payment: 27 weeks × £719 = £19,413 (capped at theoretical max £21,570)
Tax: £0 (under £30,000 threshold)
Emma's actual weekly pay is £2,500, but statutory calculations cap at £719. With enhanced terms removing the cap, she could receive £67,500 (27 × £2,500), with £37,500 taxable above the £30,000 threshold. Enhanced terms are common for senior roles.
Frequently Asked Questions
How much redundancy pay am I entitled to in the UK?
Your statutory redundancy pay depends on your age, length of service, and weekly pay. You receive 0.5 weeks' pay for each year under 22, 1 week's pay for each year aged 22-40, and 1.5 weeks' pay for each year aged 41+. Weekly pay is capped at £719 (April 2025 rate), with a maximum payment of £21,570 for 20 years' service.
Use our calculator above to get your exact entitlement based on your specific circumstances. Check your employment contract for enhanced terms that may pay more than the statutory minimum.
What is the redundancy pay cap in 2026?
From 6 April 2025, the weekly pay cap is £719. This means even if you earn £2,000 per week, statutory redundancy calculations use £719 maximum. The absolute maximum statutory redundancy payment is £21,570, achieved with 20 years' service at the highest age multiplier (20 × £719 × 1.5).
This cap applies only to statutory redundancy pay. Employers offering enhanced contractual terms may remove the cap and use your actual weekly pay, resulting in significantly higher payments for high earners.
Do I pay tax on redundancy pay?
The first £30,000 of redundancy pay is completely tax-free. This includes statutory redundancy pay and any enhanced contractual payments combined. Amounts above £30,000 are subject to Income Tax at your marginal rate but not National Insurance contributions.
For example, if you receive £45,000 in redundancy pay, the first £30,000 is tax-free, and £15,000 is taxable. This makes redundancy pay more tax-efficient than regular salary. See our take-home tax calculator to understand your tax position.
How many years' service count for redundancy pay?
Only complete years of service count for statutory redundancy pay. Partial years are ignored. A maximum of 20 years can be used for calculations. If you've worked 25 years, only the most recent 20 count.
You must have at least 2 complete years of continuous service to qualify for any statutory redundancy pay. Service time includes periods of sick leave, maternity leave, and annual leave. Check with HR if you've had any breaks in employment, as specific rules apply to continuity of service.
Can my employer offer more than statutory redundancy pay?
Yes. Statutory redundancy pay is the legal minimum. Many employers offer enhanced redundancy terms in employment contracts or collective agreements. Enhanced terms might include higher multipliers (e.g., 2 weeks per year instead of 1), no weekly pay cap, counting all years beyond 20, or adding fixed amounts.
Always check your employment contract, staff handbook, or redundancy policy. Enhanced terms are legally binding if documented. Some employers also offer ex-gratia payments on top of statutory entitlement as a goodwill gesture.
How is weekly pay calculated for redundancy?
Weekly pay is your average gross earnings over the 12 weeks before you receive your redundancy notice (not your leaving date). This includes basic salary, regular overtime, contractual bonuses, and commission if they're part of your normal pay.
For employees with irregular hours or pay, the 12-week average smooths out fluctuations. If you've recently had a pay rise, it may increase your weekly pay average. Employers must explain the calculation if you request it. One-off bonuses or expenses are typically excluded.
Do I get redundancy pay if I've worked less than 2 years?
No. You must have at least 2 years of continuous service with your employer to qualify for statutory redundancy pay. If you've worked 1 year and 11 months, you receive nothing under statutory rules.
However, you're still entitled to your notice period and any contractual benefits during that time. Some employers offer ex-gratia payments to employees under 2 years as goodwill, but this isn't a legal requirement. Check if you qualify for Universal Credit after redundancy.
When should I receive my redundancy payment?
You should receive redundancy pay on your last day of work or shortly after, typically in your final payslip. Payment can't be delayed beyond your leaving date unless mutually agreed in writing.
If your employer doesn't pay, you have 6 months from your leaving date to claim unpaid statutory redundancy pay through an employment tribunal. Keep all documentation including your redundancy notice, employment contract, and payslips. Contact ACAS (Advisory, Conciliation and Arbitration Service) for free advice on unpaid redundancy.
Data Sources and Accuracy
This calculator uses official UK government figures for 2026/27 tax year. All rates and thresholds are updated annually in April.
Official Data Sources
- Weekly Pay Cap (£719): GOV.UK Redundancy Pay Calculator
- Age Multipliers: Employment Rights Act 1996, Section 162
- Tax-Free Threshold (£30,000): GOV.UK Redundancy Rights
- Maximum Payment (£21,570): The Redundancy Payments (Continuity of Employment in Local Government, etc.) (Modification) Order 1999
- 2026 Rates Effective: 6 April 2025 onwards
Calculation Methodology
Our calculator applies the statutory redundancy pay formula mandated by UK employment law. The calculation works backwards from your redundancy date, determining your age at the start of each complete year of service, then applying the appropriate multiplier (0.5, 1.0, or 1.5 weeks' pay). Weekly pay is capped at the statutory maximum unless enhanced terms apply.
For enhanced redundancy terms, the calculator allows customisation of multipliers, weekly pay caps, and service year limits based on your employment contract. All calculations are performed client-side in your browser - no data is sent to servers.
⚠️ Important Disclaimer
This calculator provides estimates for informational and educational purposes only. While we use official government figures and employment law formulas, individual circumstances vary. Redundancy calculations may be affected by factors including continuous service breaks, TUPE transfers, enhanced contractual terms, and specific industry agreements.
Results should not be considered legal or financial advice. For disputes, unclear contractual terms, or complex employment situations, consult ACAS (free UK government service), an employment solicitor, or Citizens Advice Bureau.
Last Updated: February 2026 | Data Valid: 6 April 2025 onwards
🔒 Your Privacy and Data Protection
Your privacy is our priority. This redundancy pay calculator operates entirely in your web browser using client-side JavaScript calculations. We do not store, transmit, collect, or share any of your personal information, employment details, or calculation results.
How It Works
- Local Processing: All calculations happen on your device, not our servers
- No Data Collection: We don't receive your dates, salary, or results
- No Tracking: Your employment information stays private
- No Accounts: Use the calculator anonymously, no registration required
- Session Only: Optional form data saved locally in your browser for convenience (cleared when you close the tab)
You can use this calculator confidently while planning redundancy negotiations or checking employer offers. Your sensitive employment information never leaves your device.