Statutory Redundancy Pay
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Statutory Redundancy Pay Calculator
Enter your dates and weekly pay to find out exactly how much statutory redundancy pay you're entitled to. We use the full year-by-year method — the same approach HMRC uses — so you can see precisely how your figure is built up.
📅 2026–27 rates — valid from 6 April 2026
Weekly pay cap: £751
Max payment: £22,530
See all statutory rates →
Used to apply the correct age-band multiplier to each year
The date you started with this employer
The date your employment ends — defaults to today
£
Your gross pay before tax — capped at £751 if higher
Your weekly pay exceeds the £751 cap — we'll automatically use £751 in the calculation as required by law.
Year-by-Year Breakdown
| Year | Age band | Age | Multiplier | Weekly pay | Amount |
|---|
PAIRED GUIDE
Statutory Redundancy Pay Explained
Understand how the calculation works, who qualifies, how the weekly pay cap is applied, and when your employer must pay above the statutory minimum.
Read the Guide →How to Use This Calculator
- Date of birth — used to apply the correct age-band multiplier to each year of service. The multiplier changes at ages 22 and 41.
- Employment start date — the date you started with your current employer. Only continuous service counts.
- Redundancy date — the date your employment actually ends (after any notice period). Defaults to today.
- Gross weekly pay — your pay before tax and National Insurance. If this exceeds £751 we automatically apply the cap. For variable pay, use your average weekly pay from the 12 weeks before your redundancy notice.
The calculator works through each complete year of service individually, applying the correct multiplier for your age during that year — the same method used by HMRC and employment tribunals.
How Redundancy Pay Is Calculated
Your statutory redundancy pay is built up year by year, with a multiplier applied based on how old you were during each year of service:
| Your age during that year | Multiplier | What you receive per year |
|---|---|---|
| Under 22 | ½× | Half a week's pay |
| 22 to 40 | 1× | One week's pay |
| 41 or over | 1½× | One and a half week's pay |
Only the most recent 20 complete years of service count. Your weekly pay is capped at £751 (2026–27 rate). You need at least 2 complete years of service to qualify.
Frequently Asked Questions
How is statutory redundancy pay calculated?
Your entitlement is built up year by year. For each complete year of service you receive a fraction of a week's pay based on your age during that year — half a week's pay if you were under 22, one week's pay if aged 22 to 40, and one and a half week's pay if aged 41 or over. Your weekly pay is capped at £751 and only the most recent 20 years count.
What is the weekly pay cap for 2026–27?
£751 per week, effective from 6 April 2026. If your gross weekly pay exceeds this, only £751 is used in the calculation — the cap applies to gross pay before tax and National Insurance. The maximum possible statutory payment is £22,530.
Do I pay tax on statutory redundancy pay?
No. Statutory redundancy pay is tax-free up to £30,000. Since the maximum statutory payment is £22,530 it is always within this threshold. You will not pay Income Tax or National Insurance on it. Note that other elements of a redundancy package — such as pay in lieu of notice — are treated differently.
How many years of service count?
Only the most recent 20 complete years of continuous service count. If you have worked for your employer for more than 20 years, only the last 20 years are used. You need a minimum of 2 complete years of continuous service to qualify at all.
What counts as a week's pay?
For employees with fixed pay and hours, it is your gross weekly earnings before deductions. For employees with variable pay or hours, it is the average of your weekly pay over the 12 weeks before your redundancy notice was given — excluding any weeks where you received no pay. It is always gross, before tax and National Insurance.
Can my employer pay more than the statutory minimum?
Yes. Many employers offer enhanced redundancy pay — using a higher weekly cap, a larger multiplier, or counting more years of service. Check your employment contract or company redundancy policy. The statutory figure calculated here is the legal minimum only.
What if my employer refuses to pay?
If your employer refuses to pay statutory redundancy pay, or pays less than you are entitled to, you can make a claim to an employment tribunal. You must make the claim within 6 months of your employment ending. Acas early conciliation is required before a tribunal claim can be submitted.