Redundancy Pay Calculator
Statutory redundancy pay in the UK is based on your age during each full year of service (0.5, 1.0 or 1.5 weeks), capped weekly pay (£751 in GB, £783 in NI from 6 April 2026), and a maximum of 20 years of service. This calculator estimates it and explains the breakdown.
This UK redundancy pay calculator estimates your statutory redundancy entitlement based on age, full years of continuous service, gross weekly pay, region (Great Britain or Northern Ireland), and the current statutory caps.
It checks likely eligibility, applies the age-banded multipliers (0.5, 1.0 and 1.5 weeks), shows the relevant date used (including a payment-in-lieu-of-notice adjustment where relevant), and presents notice pay separately so the statutory figure stays clean and easy to read.
This calculator provides an estimate based on current statutory rules and the inputs entered. It does not provide legal advice.
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What this calculator does
Estimates UK statutory redundancy pay using age-banded service, capped weekly pay and the maximum statutory payment for Great Britain or Northern Ireland from 6 April 2026. Also shows an eligibility verdict, the relevant date used, a separate notice-pay panel, an optional enhanced redundancy estimate, and a clear tax note.
Who it is for
Employees in the UK facing redundancy or planning ahead, HR managers and small employers running redundancy processes, and anyone wanting to understand how statutory redundancy pay is calculated in Great Britain or Northern Ireland.
How to use it
Pick your region. Answer the short eligibility check (employee status, dismissed for redundancy, suitable alternative employment, fixed-term). Enter your date of birth, employment start date, leaving date and gross weekly pay. Optionally toggle PILON, enter contractual notice weeks and an enhanced multiplier. Click 'See my result' for the eligibility verdict, statutory estimate, age-banded breakdown, notice pay and tax note.
How the calculation works
For each full year of service counted backward from the relevant date (capped at 20 years), apply the age-banded multiplier: 0.5 weeks under 22, 1.0 week between 22 and 40, 1.5 weeks at 41 or older. Capped weekly pay = min(gross weekly pay, regional cap — £751 GB or £783 NI from 6 April 2026). Statutory redundancy pay = total weeks × capped weekly pay, then capped at the regional maximum (£22,530 GB or £23,490 NI). If PILON applies, the relevant date is pushed by the statutory notice period, which can sometimes add another full year of service.
Worked example
A worker in England aged 51 with 15 full years of service and £600 gross weekly pay: 4 years aged 22–40 (= 4.0 weeks) + 11 years aged 41+ (= 16.5 weeks) = 20.5 weeks. Capped weekly pay = £600 (under the £751 cap). Estimated statutory redundancy pay = 20.5 × £600 = £12,300. Notice pay (12 weeks statutory at 12+ years × £600) = £7,200, shown separately.
Assumptions and limitations
- Rules version reviewed April 2026, effective from 6 April 2026 in both Great Britain and Northern Ireland
- Great Britain weekly cap: £751 · maximum statutory pay: £22,530
- Northern Ireland weekly cap: £783 · maximum statutory pay: £23,490
- Service is counted as full years only and capped at 20 years
- Age bands use the worker's age at the start of each completed year of service counted backward from the relevant date
- If PILON is selected, the relevant date is pushed by the statutory notice period (1 week per year of service, between 1 and 12 weeks)
- Notice pay is shown separately and uses actual gross weekly pay (not the statutory cap), with the longer of statutory and contractual notice
- Enhanced redundancy estimates use total statutory weeks × user's multiplier × capped weekly pay — real schemes vary
- Statutory redundancy pay up to £30,000 is generally tax-free; notice pay, holiday pay, unpaid wages and most enhanced redundancy elements may be taxed differently
- This is an estimate, not legal or tax advice
Frequently asked questions
How is redundancy pay calculated in the UK?
Statutory redundancy pay is based on your age during each full year of continuous service (counted backward from the relevant date, up to 20 years): 0.5 week's pay for each year under 22, 1 week for each year 22–40, and 1.5 weeks for each year 41+. Weekly pay is capped — £751 in Great Britain and £783 in Northern Ireland from 6 April 2026. The total is then capped at £22,530 (GB) or £23,490 (NI).
Do I need 2 years' service to get redundancy pay?
Yes, in almost all cases statutory redundancy pay requires at least 2 years' continuous service as an employee by the relevant date. Some short-service cases involving payment in lieu of notice can push you over the 2-year mark — the calculator handles this when you tick the PILON option.
Is redundancy pay taxed?
Statutory redundancy pay up to £30,000 is generally tax-free and not subject to National Insurance. Notice pay, holiday pay, unpaid wages, contractual bonuses and most enhanced redundancy elements may be taxed differently. The calculator shows statutory pay separately to keep this clear.
Does notice pay count as redundancy pay?
No — notice pay is a separate entitlement from statutory redundancy pay. The calculator shows an estimated notice pay figure on its own panel, using your actual gross weekly pay (not the statutory cap) and the longer of statutory and contractual notice.
What is the weekly pay cap?
From 6 April 2026 the statutory weekly pay cap is £751 in Great Britain and £783 in Northern Ireland. If your gross weekly pay is below the cap, your actual pay is used; if it is above, the cap is used for the statutory calculation.
What is the maximum statutory redundancy payment?
From 6 April 2026 the maximum statutory redundancy payment is £22,530 in Great Britain and £23,490 in Northern Ireland. Even with 20 years of service at the cap and the highest age band, the total cannot exceed this maximum.
Does age affect redundancy pay?
Yes. Each full year of service is multiplied by 0.5, 1.0 or 1.5 weeks depending on your age during that year. Workers aged 41 or older during a year of service get 1.5 weeks for that year, which is why redundancy payouts often grow significantly after 40.
What happens if I'm offered another job?
If your employer offers suitable alternative employment and you unreasonably refuse it, you can lose your statutory redundancy pay. There is usually a 4-week trial period to try the new role without losing your entitlement. Whether an offer is 'suitable' and a refusal 'unreasonable' is fact-specific — get advice if unsure.
What if I work variable hours?
For variable-hours workers, gross weekly pay is normally averaged over the 12 weeks before the redundancy notice was given. Use that average in the gross weekly pay field. Guaranteed overtime and contractual bonuses can be included in the calculation.
What if I'm on maternity leave or another family-related leave?
Statutory redundancy pay must be based on your normal contractual gross weekly pay — not your reduced maternity, paternity, adoption or shared parental leave pay. Tick the family-related leave option and enter your normal pay.
What if I'm paid in lieu of notice?
Where payment in lieu of notice (PILON) applies, the 'relevant date' for statutory redundancy pay can be pushed by the statutory notice period (1 week per full year of service, up to 12 weeks). This can sometimes push you over another full year of service and increase the payout. Tick the PILON option to apply this.
Is redundancy different in Northern Ireland?
Yes. The formula is the same but the weekly pay cap and maximum statutory payment are different — in Northern Ireland the cap is £783 and the maximum is £23,490 from 6 April 2026 (versus £751 / £22,530 in Great Britain). Pick 'Northern Ireland' as your region to apply NI rules.
What happens if my employer is insolvent?
If your employer cannot pay your redundancy pay because they are insolvent, you can claim from the National Insurance Fund (in Great Britain via the Redundancy Payments Service / GOV.UK) or via nidirect in Northern Ireland. The same statutory caps apply.
Do fixed-term employees ever qualify?
Yes. Fixed-term employees can qualify for statutory redundancy pay where the role is genuinely redundant (not just the contract ending) and they have at least 2 years' continuous service by the relevant date.
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Related guides
- Redundancy Pay Rights in the UK Explained — A plain-English UK guide to statutory redundancy pay: who qualifies, how it is calculated, the GB and NI weekly caps, the relevant date, notice pay, and tax.
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Sources and references
GOV.UK — Redundancy: your rights (https://www.gov.uk/redundancy-your-rights), GOV.UK — Calculate your statutory redundancy pay (https://www.gov.uk/calculate-your-redundancy-pay), GOV.UK — Notice periods (https://www.gov.uk/handing-in-your-notice/giving-notice), GOV.UK — Tax on termination payments (https://www.gov.uk/income-tax-on-payments-from-employer), Acas — Redundancy pay (https://www.acas.org.uk/redundancy-pay), Acas — Suitable alternative employment (https://www.acas.org.uk/suitable-alternative-employment-and-trial-periods), nidirect — Redundancy pay (https://www.nidirect.gov.uk/articles/redundancy-pay), The Employment Rights (Increase of Limits) Order 2026.
Last updated
Last reviewed: 2026-04-19.