UK Redundancy Pay Calculator
Facing redundancy is unsettling — knowing where you stand helps. Pop in your date of birth, salary and start date below and we’ll work out exactly what statutory redundancy pay you’re entitled to, using the official UK rates for 2026/27.
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How UK Redundancy Pay Is Calculated
Statutory redundancy pay in the UK is based on three factors: your age, your length of service (up to a maximum of 20 years), and your weekly pay (capped at £751 per week for 2026/27, or £783 in Northern Ireland).
The formula applies a different multiplier depending on your age during each year of employment:
- Under 22: half a week's pay for each complete year of service
- Aged 22 to 40: one week's pay for each complete year of service
- Aged 41 and over: one and a half weeks' pay for each complete year of service
You must have worked for your employer continuously for at least 2 years to qualify for statutory redundancy pay. The maximum statutory redundancy payment is currently £22,530.
Redundancy pay up to £30,000 is tax-free. Any amount above this threshold may be subject to income tax and National Insurance contributions.
Read our full step-by-step guide to how redundancy pay is calculated
Redundancy Pay Guides
Understanding your redundancy rights can feel overwhelming. Our guides break down every aspect of UK redundancy law in plain English.
How Is Redundancy Pay Calculated?
Step-by-step explanation of the statutory formula with worked examples.
Statutory vs Contractual Redundancy Pay
Understand the difference between the legal minimum and enhanced packages.
How Age Affects Your Redundancy Pay
Learn why the three age bands mean older workers receive more per year of service.
Maximum Redundancy Pay in the UK
Current limits and how the maximum statutory payment of £22,530 is calculated.
Earning Over £751 Per Week?
How the weekly pay cap affects higher earners and what your options are.
Is Redundancy Pay Taxed?
Tax rules for redundancy payments, notice pay and holiday pay.