Redundancy pay calculator
Your statutory redundancy pay, worked from your age, years of service and weekly wage. This shows the legal minimum you are owed, and how much of it is tax-free.
How the weeks add up
| Age band while working | Rate | Years |
|---|---|---|
| Under 22 | 0.5 week per year | 0 |
| 22 to 40 | 1 week per year | 8 |
| 41 and over | 1.5 weeks per year | 4 |
| Total | 14.0 weeks | 12 |
How statutory redundancy pay works
The statutory figure rewards longer and older service. For each full year you worked, you get a share of a week's pay set by your age during that year: half a week under 22, a full week from 22 to 40, and one and a half weeks at 41 or over. Add the weeks up and multiply by your weekly pay to get the total.
Two caps hold the figure down. Only your most recent 20 years of service count, and a week's pay is capped at £751 for redundancies from 6 April 2026, whatever you actually earn. Those limits mean the statutory maximum is £22,530. On top, the first £30,000 of any redundancy payment is free of income tax and National Insurance, so most statutory sums arrive untaxed.
Worked example
Take someone aged 45 with 12 full years of service, earning £600 a week. Counting back from redundancy, 4 of those years fall at 41 or over, worth 1.5 weeks each, and 8 fall in the 22 to 40 band, worth 1 week each. That is 14.0 weeks of pay in total. The £600 weekly wage is under the £751 cap, so it is used in full, giving £8,400. All of it sits inside the £30,000 tax-free limit.
Common questions
How is statutory redundancy pay calculated?
It is based on your age, your full years of service and your weekly pay. You get half a week's pay for each full year worked while under 22, one week for each year while 22 to 40, and one and a half weeks for each year while 41 or over. Service counts for a maximum of 20 years.
Is there a cap on weekly pay?
Yes. For redundancies on or after 6 April 2026 a week's pay is capped at £751 for the statutory calculation, even if you earn more. With the 20-year service limit, the most statutory redundancy pay you can get is £22,530.
Is redundancy pay taxed?
Statutory redundancy pay is tax-free. More widely, the first £30,000 of any redundancy package, including enhanced payments, is free of income tax and National Insurance. Anything above £30,000 is taxable in the normal way.
Do I qualify for statutory redundancy pay?
You normally need at least two full years of continuous service with the employer to qualify. Casual, agency and some other arrangements have different rules, so check your status if you are unsure.
What counts as a week’s pay?
Usually your normal gross weekly wage before tax. For variable hours it is often an average over the 12 weeks before redundancy. The statutory figure uses the capped amount, so anything above the weekly cap does not raise the statutory total.