How to use the Redundancy Pay Calculator
- 1 Enter your age on the date you are made redundant.
- 2 Enter your full years of continuous service with the employer.
- 3 Enter your gross weekly pay before tax.
- 4 Read your statutory redundancy pay and the number of weeks' pay it is based on.
Worked example
Aged 45 with 12 years' service, earning £800 a week. Four of those years were at age 41 or over (6 weeks' pay) and eight were between 22 and 40 (8 weeks' pay), so the total is 14 weeks. Weekly pay is capped at £751, so redundancy pay is 14 × £751 = £10,514.
Features
Age bands
Half a week's pay for each year under 22, one week for each year from 22 to 40, and one and a half weeks for each year aged 41 or over.
Pay cap
Weekly pay is capped at £751 for redundancies from 6 April 2026.
20-year limit
Only the last 20 years of service count, as the law requires.
When to use it
Facing redundancy
Check the minimum you are entitled to before a consultation meeting.
Employers
Work out statutory payments correctly when planning redundancies.
Comparing offers
See whether an enhanced package is more than the legal minimum.
Financial planning
Know the amount, and that the first £30,000 is usually tax-free.
Frequently asked questions
Who gets statutory redundancy pay?
Employees with at least 2 years of continuous service who are dismissed because of redundancy.
How is it calculated?
Half a week's pay for each full year worked under 22, one week for each full year from 22 to 40, and one and a half weeks for each full year aged 41 or older, counted back from the redundancy date.
What is the maximum?
With 20 years' service all at age 41 or over and the £751 weekly cap, the maximum is 30 weeks, which is £22,530.
Is redundancy pay taxed?
The first £30,000 of redundancy pay is usually tax-free. Pay in lieu of notice and holiday pay are taxed normally.
Can my employer pay more?
Yes. Many employers offer enhanced redundancy pay. Statutory pay is only the legal minimum.
What counts as a week's pay?
For employees with normal working hours it is usually the gross weekly pay before deductions, including regular overtime if the contract requires it, up to the weekly cap.
What if my employer does not pay?
Ask your employer in writing, then contact Acas. If the employer is insolvent, you can claim statutory redundancy pay from the Insolvency Service.
Does notice pay count as redundancy pay?
No. Notice pay is separate and is taxed as normal earnings. You are entitled to notice, or pay in lieu of notice, as well as redundancy pay.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated