⚖️ Free UK Calculator · 2026/27

Redundancy Pay Calculator
Statutory Entitlement 2026/27

Enter your age, years of service and weekly pay to see exactly what statutory redundancy you're entitled to — with a year-by-year breakdown and tax-free confirmation.

Your details

✅ You qualify for statutory redundancy pay
Use your age on the date your employment ends
Only full years count — maximum 20 years used in calculation
Your average weekly pay before tax. Capped at £751 for 2026/27.
£
Under 22
½
week's pay per year
Age 22–40
1
week's pay per year
Age 41+
1½
week's pay per year
2026/27 rates: Weekly pay capped at £751. Maximum statutory payment £22,530. Only the most recent 20 years of service count. Amounts up to £30,000 are fully tax-free.

Your entitlement

Statutory redundancy pay
£5,200
8 years × £650/week (capped at £751)
Tax status
Tax-free ✓
Year-by-year breakdown
Years of serviceAge during yearMultiplierAmount
✅ Fully tax-free: Your redundancy pay of £5,200 is within the £30,000 tax-free threshold — you pay no income tax or National Insurance on this payment.

Based on 2026/27 statutory rates. Results are estimates — verify with your employer's written calculation and check gov.uk for the official calculator.

How statutory redundancy pay is calculated

The formula is set by law under the Employment Rights Act 1996 and applies the same way to every employee. Your entitlement depends on three things: your age during each year of service, your total years of continuous service (capped at 20), and your gross weekly pay (capped at £751 from April 2026).

The key point that catches people out is that the multiplier applies per year of service at the age you were during that year — not your current age applied to all years. So if you're now 45 and have worked somewhere for 12 years, the calculator works backwards: the most recent years are at the 1.5x rate (when you were 41+), and earlier years may be at the 1x rate (when you were 22–40).

Your employer cannot pay less than the statutory minimum. They can pay more — this is called enhanced redundancy pay, and if your contract includes it, it's a contractual entitlement. The first £30,000 of any redundancy payment (statutory plus enhanced) is tax-free.

Do you qualify?

If you're unsure whether you qualify, the gov.uk redundancy pay calculator is the official tool, and Citizens Advice can help with eligibility questions.

Frequently asked questions

Statutory redundancy pay is calculated using your age, years of continuous service and weekly gross pay (capped at £751 from April 2026). You get half a week's pay per year under 22, one week's pay per year aged 22–40, and one and a half weeks' pay per year aged 41+. Maximum service counted is 20 years. The maximum statutory payment is £22,530.
The first £30,000 of statutory redundancy pay is completely tax-free and exempt from National Insurance. Any amount above £30,000 is taxed as employment income at your normal rate. Most employees receiving statutory redundancy pay will be within the £30,000 threshold, so their full payment is tax-free.
To qualify you must be an employee (not self-employed or a worker), have at least 2 years of continuous service with the same employer, and be genuinely made redundant. Contractors, agency workers and those dismissed for misconduct do not qualify. Zero-hours employees who meet the 2-year threshold do qualify.
The statutory weekly pay cap is £751 from 6 April 2026. If your actual gross weekly pay is above this figure, only £751 is used. If your pay is below £751, your actual pay is used. The cap is reviewed each April by the government.
Yes. Your employer can pay more than the statutory minimum — this is called enhanced redundancy pay. Check your employment contract for any contractual entitlement. The first £30,000 of any redundancy payment (statutory and enhanced combined) is tax-free. Anything above £30,000 is subject to income tax but not National Insurance.
If your employer refuses to pay statutory redundancy pay you believe you're entitled to, you can apply to an Employment Tribunal within 6 months of your dismissal date. If your employer is insolvent, you can claim from the National Insurance Fund via the Redundancy Payments Service on gov.uk. Citizens Advice can help you understand your options.

Plan what comes next

Use the salary calculator to compare job offers, or see what you'd take home as a self-employed contractor.

Salary calculator → Self-employed calculator →

📋 Source: Calculation based on the Employment Rights Act 1996 and HMRC statutory redundancy rates for 2026/27. Weekly cap £751 from 6 April 2026. For the official calculator visit gov.uk/calculate-your-redundancy-pay. Results are estimates — not legal advice.