Calculate your redundancy pay entitlement based on age, service length, and weekly pay.
Age at redundancy35 years
18 years80 years
Full years of service5 years
0 years50 years
Weekly pay before tax£500.00
£
Statutory Redundancy Pay
£2,500.00
Breakdown by Age Bracket
5 years at 1x
£2,500.00
How is this calculated?
Statutory redundancy pay works backwards from your age, up to a maximum of 20 years. Your weekly pay is capped at £751.
Age 35: 1 yr × 1x × £500 = £500Age 34: 1 yr × 1x × £500 = £500Age 33: 1 yr × 1x × £500 = £500Age 32: 1 yr × 1x × £500 = £500Age 31: 1 yr × 1x × £500 = £500Total: £2,500.00
Share this result
About the Redundancy Pay Calculator UK
Statutory redundancy pay is not a percentage of your salary or a lump sum your employer decides. It is a formula set in law, and it depends on three things only: your age, how long you have worked there, and your weekly pay. What surprises most people is how heavily it is capped. However much you earn, only the first £751 a week counts, and however long you have worked, only the last twenty years count. Someone earning £2,000 a week with ten years of service gets exactly the same statutory payment as someone earning £751 a week with the same service — £9,387.50 in both cases. The absolute maximum anyone can receive is £22,530. This calculator applies the age bands year by year and shows the working, so you can see which years earned half a week, which earned one, and which earned one and a half. It calculates the statutory minimum. Many employers pay more than this under a contractual or enhanced scheme, and any extra is a matter for your contract rather than the law. The figures here are those in force for redundancies on or after 6 April 2026; earlier redundancies use lower caps.
Mathematical Formula & Logic
You must have at least two years of continuous service with the employer to qualify at all. Below that, the statutory entitlement is nil regardless of age or pay, which is why this calculator returns zero for one year of service. Once you qualify, each full year of service earns an amount that depends on how old you were during that year: half a week is pay for each full year you were under 22, one week is pay for each full year you were 22 or older but under 41, and one and a half weeks is pay for each full year you were 41 or older. The years are counted backwards from the date your employment ends, and only the most recent twenty count. Your weekly pay is the average you earned per week over the twelve weeks before you received your redundancy notice, and it is capped at £751 for this purpose. If you actually earn more than that, the excess is simply ignored. Multiply the total number of weeks by the capped weekly pay and you have the statutory figure, subject to an overall ceiling of £22,530 — which is exactly twenty years at one and a half weeks each, times the £751 cap, so the ceiling binds only for someone over 41 with the full twenty years at or above the pay cap. Statutory redundancy pay is free of income tax and National Insurance, as is any contractual redundancy payment, up to a combined total of £30,000.
Step-by-Step Example
Three worked examples showing where the caps bite.
Example 1: aged 45 with ten years of service, earning £500 a week. You were 41 or older for five of those ten years, earning one and a half weeks each, which is 7.5 weeks. For the other five years you were between 22 and 40, earning one week each, which is 5 weeks. That is 12.5 weeks in total. Your pay of £500 is below the £751 cap, so it is used in full. The payment is 12.5 multiplied by £500, which is £6,250.
Example 2: the same person earning £2,000 a week. The service calculation is identical at 12.5 weeks, but the weekly pay is capped at £751. The payment is 12.5 multiplied by £751, which is £9,387.50. Earning four times as much produced only about 50% more redundancy pay, because everything above £751 a week is disregarded.
Example 3: aged 65 with 25 years of service and high pay. Service is capped at 20 years, all of them at 41 or over, giving 30 weeks. Weekly pay is capped at £751. Thirty multiplied by £751 is £22,530, which is also the statutory ceiling. This is the largest statutory redundancy payment it is possible to receive, and it is the same whether you earned £800 a week or £8,000.
Reference Data & Values
label
value
Minimum service to qualify
2 years of continuous employment
Each full year under 22
Half a week is pay
Each full year aged 22 to 40
One week is pay
Each full year aged 41 or over
One and a half weeks is pay
Maximum years counted
20 — the most recent ones
Weekly pay cap
£751 from 6 April 2026
Overall maximum payment
£22,530
Tax on redundancy pay
Free of income tax and NI up to £30,000 in total
Time limit to claim
6 months from the date the job ends
Frequently Asked Questions
Half a week is pay for each full year you were under 22, one week for each full year between 22 and 40, and one and a half weeks for each full year from 41 onwards, counting back a maximum of twenty years. Weekly pay is capped at £751 and the total at £22,530. You need at least two years of service to get anything at all. Enter your details above and the calculator shows the year-by-year breakdown rather than just a total.
Almost certainly the £751 weekly cap. Statutory redundancy pay ignores everything you earn above that figure, so a £40,000 salary and a £120,000 salary produce identical statutory payments for the same length of service. The cap is the single biggest reason real payments fall short of expectations. If your employer has a contractual or enhanced redundancy scheme, that may pay on your actual salary — but that comes from your contract, not from the law.
Not on the first £30,000, and statutory redundancy pay is always within that. The £30,000 exemption covers statutory and contractual redundancy payments combined, and it is free of both income tax and National Insurance. Anything above £30,000 is taxable as income. Payment in lieu of notice is treated differently and is generally taxable in full, so a large settlement can be part exempt and part taxable.
Unbroken employment with the same employer, or with an employer that took over the business under TUPE, in which case your service transfers with you. Short gaps for sickness, holiday or maternity leave do not break continuity. Genuine breaks in employment usually do, so if you left and were rehired, the clock generally restarts. If your employment moved between associated companies in the same group, continuity is normally preserved.
This is the one genuinely awkward part of the calculation. The law refers to full years in which you were a given age, and where a birthday falls part-way through a year of service there is scope for the count to differ by half a week either way. This calculator counts the age you reached during each year, working backwards from your leaving date, which is the standard approach. If your entitlement sits right on a boundary and the difference matters, check against the official calculator on gov.uk before relying on the figure.
Only in defined circumstances. You lose the entitlement if your employer offers to keep you on, or offers suitable alternative work that you refuse without good reason. Dismissal for misconduct is not redundancy, so no payment arises. Certain groups are excluded entirely, including crown servants, members of the armed forces and police services, and share fishermen. Outside those cases, statutory redundancy pay is a legal right rather than a discretionary payment.
You can claim statutory redundancy pay from the Redundancy Payments Service, which pays it out of the National Insurance Fund. The amounts and the caps are the same, and you claim directly rather than through your employer. You can also claim unpaid wages, holiday pay and notice pay through the same route, each subject to its own limits. This is the main practical reason the statutory scheme exists in the form it does.
Six months from the date your employment ends. If your employer simply has not paid, write to them first, and if that fails you can take the claim to an employment tribunal. The six-month limit is strict, and tribunals extend it only rarely, so it is worth acting well before the deadline rather than assuming a dispute will resolve itself.