UK Redundancy Pay Calculator
Estimate statutory redundancy pay using age bands, weekly pay cap, and the 20-year service limit.
Capped weekly pay used
£700.00
Service years used
10
Statutory redundancy pay
£8,750.00
| Age band | Years | Weeks per year | Pay |
|---|---|---|---|
| Under 22 | 0 | 0.5 | £0.00 |
| Age 22 to 40 | 5 | 1 | £3,500.00 |
| Age 41+ | 5 | 1.5 | £5,250.00 |
Statutory pay is capped at 20 years of service and GBP751 weekly pay for 2026/27. Employers can offer enhanced packages.
What this tool includes
- Age
- Weekly pay cap
- Years of service
- Age-band breakdown
- Statutory redundancy pay
How this is calculated
Statutory redundancy pay depends on age, complete years of continuous service and weekly pay, subject to the statutory weekly pay cap and a maximum of 20 years of service. The calculator applies the age multiplier to each year of service and then multiplies the total weeks by capped weekly pay.
For 2026/27, GOV.UK states that weekly pay is capped at GBP751 for redundancies on or after 6 April 2026. The age multipliers are 0.5 week's pay for each full year worked under age 22, 1 week's pay for each full year from age 22 to 40, and 1.5 weeks' pay for each full year aged 41 or over. Enhanced employer schemes can pay more than the statutory minimum.
Use the result as a practical planning estimate for age, weekly pay cap, years of service, age-band breakdown, statutory redundancy pay. The calculator is designed to make the main moving parts visible immediately, so it is most useful when you want to compare scenarios, sense-check a decision, or understand why one input changes the final result.
Before relying on the number, check whether your situation includes anything outside the calculator scope. Common examples are local rules, provider fees, payroll timing, special reliefs, bank holidays, tariff changes, exchange-rate markups, unusual tax codes, or personal circumstances that need official guidance or professional advice.
To make the estimate more accurate, use figures from the most recent bill, payslip, lender quote, receipt, official notice or provider screen you have. Rounded inputs are fine for quick comparisons, but precise inputs are better when you are deciding whether something is affordable or comparing two similar options.
Re-run the calculator whenever a key assumption changes, such as a new rate, different term, changed salary, updated threshold, extra fee, altered usage pattern or different date range. Keeping those assumptions fresh is often more useful than trying to make one calculation perfect.
If you are using the result for a formal decision, keep a note of the inputs you used and the date of the calculation. That makes it easier to compare the estimate with a later quote, bill, payslip or official calculation.
Assumptions behind this estimate
- Uses the 2026/27 statutory weekly pay cap of GBP751.
- Caps service at 20 years.
- Does not include enhanced employer redundancy packages, notice pay or settlement agreements.
Worked examples
Age 30, 5 years, GBP500 weekly pay
- All 5 years fall in the age 22 to 40 band.
- That gives 5 weeks of statutory redundancy entitlement.
- GBP500 x 5 weeks = GBP2,500 statutory redundancy pay.
Age 45, 10 years, GBP800 weekly pay
- Weekly pay is capped at GBP751 for the statutory calculation.
- Years worked from age 41 onwards receive 1.5 weeks per year; earlier qualifying years receive 1 week per year.
- The breakdown shows how much comes from each age band before multiplying by capped weekly pay.
More than 20 years of service
- Only the latest 20 years count for statutory redundancy pay.
- Older service years outside that window are ignored by the statutory formula.
- Your employer may still offer an enhanced package that recognises longer service.
FAQ
How much redundancy pay am I entitled to?
The statutory amount depends on age, full years of service and weekly pay, with weekly pay and service caps.
Is redundancy pay taxable?
The first GBP30,000 of genuine redundancy pay is usually tax-free, but notice pay and wages are normally taxed.
What if I have worked less than 2 years?
You usually need at least 2 years of continuous service to qualify for statutory redundancy pay.
Written and maintained by AtlasPeak, a UK-focused calculator site that explains the assumptions behind each result. Last updated: July 2026.
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