Redundancy Pay Calculator
Calculate your statutory redundancy pay based on your age, weekly pay, and years of service.
How is statutory redundancy pay calculated?
Statutory redundancy pay is based on three things: your age, your length of service, and your weekly pay - up to a maximum of £751 per week and 20 years of service.
The multiplier applied to each year of service depends on your age during that year. You receive half a week's pay for each year worked under the age of 22, one week's pay for each year worked between 22 and 40, and one and a half weeks' pay for each year worked aged 41 or over. If your employment spans more than one age band - for example, if you joined at 38 and are leaving at 44 - the correct multiplier is applied to each year individually. This calculator does that automatically.
The maximum statutory redundancy payment is £22,530, reached when all 20 years of capped service fall in the 41 and over band at the maximum weekly pay of £751.
Redundancy payments up to £30,000 are generally free of income tax and National Insurance. Amounts above £30,000 are taxable as income in the normal way. This calculator shows your statutory entitlement only - your employer may offer an enhanced redundancy package above the statutory minimum, but they cannot pay less.
To qualify for statutory redundancy pay, you must have worked for your employer continuously for at least two years. If you have been dismissed for gross misconduct, you may lose your entitlement. If you are unsure whether you qualify, ACAS offers free and impartial advice.
Weekly pay is calculated differently depending on how you are paid. For employees with fixed hours and pay, it is straightforward. For those with variable hours or pay, HMRC uses an average of the 12 weeks before the redundancy notice. If your pay varies significantly week to week, the statutory figure this calculator produces may differ slightly from your actual entitlement - your employer's HR team or payroll department can confirm the correct weekly pay figure to use.
Frequently asked questions
Do I get redundancy pay if I have been employed for less than two years?
No. You must have worked continuously for the same employer for at least two years to qualify for statutory redundancy pay. If you have been employed for less than two years, you are not entitled to a statutory payment, though your employer may choose to make an ex-gratia payment. Some enhanced redundancy schemes have shorter qualifying periods - check your employment contract.
Is redundancy pay taxable?
Statutory redundancy pay is tax-free up to £30,000. If your total redundancy payment - including any enhanced payment from your employer - exceeds £30,000, the amount above that threshold is subject to income tax in the normal way. National Insurance is not charged on redundancy payments regardless of the amount.
What if my employer refuses to pay my statutory redundancy?
If your employer refuses to pay statutory redundancy pay and you believe you are entitled to it, you can make a claim to an employment tribunal. The time limit is generally six months from the date your employment ended. ACAS provides free guidance on this process and offers an early conciliation service. If your employer is insolvent, you may be able to claim directly from the government's Redundancy Payments Service.
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