UK Statutory Redundancy Pay Calculator (2026)
Calculate your statutory redundancy pay entitlement based on your age, continuous years of service, and weekly pay.
United Kingdom Calculator
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Instant Estimate
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Statutory Redundancy Pay
£6,300
Based on your selected redundancy pay uk assumptions. Try different sliders to compare scenarios.
Weeks of Pay Entitled
9
Applied Weekly Cap
£700
These are planning estimates, not tax, legal or investment advice. Country rules, lender policies and tax rates can change.
How to Use the Redundancy Pay UK
Enter your age
Input your age at the official date of redundancy termination.
Enter completed service years
Input full continuous years worked with your employer (minimum 2 years, capped at 20 years).
Enter gross weekly pay
Input your average weekly earnings before tax (HMRC statutory cap is £700 per week).
Formula & Calculation Methodology
Redundancy Pay = Age-Weighted Factor × Service Years × Capped Weekly PayThis calculator uses standard United Kingdom financial formulas, IRS thresholds, and amortization schedules. All results compute instantly in your browser with zero data stored or transmitted.
Calculation Examples & Scenarios
Mid-Career Redundancy (Age 42)
Age 42, 8 full years of service, £750 gross weekly pay (subject to £700 cap).
Long-Tenure Senior Employee (Age 55)
Age 55, 15 full years of service, £900 weekly pay (capped at £700).
Young Worker (Age 21)
Age 21, 2 full years of service, £450 weekly pay.
Key Benefits
- Applies official Employment Rights Act age-bracket multipliers accurately
- Enforces the HMRC statutory weekly pay cap (£700/week) automatically
- Determines how much statutory severance is legally protected tax-free (£30,000 allowance)
Common Use Cases
- Employees facing workplace restructuring evaluating employer settlement agreements
- HR professionals and company directors calculating minimum statutory severance packages
- Workers checking whether contractual enhanced redundancy packages exceed statutory minimums
How UK Statutory Redundancy Pay is Calculated
Under UK employment law, statutory redundancy pay is based on age and completed years of service (up to a maximum of 20 years): 0.5 week’s pay for each full year worked under age 22; 1 week’s pay for each full year worked aged 22 to 40; and 1.5 week’s pay for each full year worked aged 41 and older.
The weekly pay used in the statutory calculation is capped by law at £700 per week, resulting in a maximum statutory payout of £21,000 (20 years × 1.5 weeks × £700).
Tax Exemption on Redundancy Payments
Statutory redundancy pay is completely exempt from UK Income Tax and employee National Insurance up to £30,000. Any ex-gratia or contractual redundancy settlement amount exceeding £30,000 is subject to standard PAYE Income Tax deductions.
Frequently Asked Questions
Under UK employment law, the weekly pay cap for statutory redundancy calculations is £700 per week. The maximum statutory redundancy pay is capped at £21,000 (20 years × 1.5 weeks × £700).
You receive: 0.5 week’s pay for each full year worked under age 22; 1 week’s pay for each full year worked aged 22 to 40; 1.5 week’s pay for each full year worked aged 41 and older.
Statutory redundancy pay is 100% tax-free up to £30,000. Any portion of a termination settlement exceeding £30,000 is subject to Income Tax and employee National Insurance.
You must have at least 2 full continuous years of service with your employer to qualify for statutory redundancy pay under UK law.
Yes. Many UK employers offer contractual or enhanced redundancy packages that pay significantly more than the legal statutory minimum.
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