Your age on your last day of work.
Only complete years count. Service over 20 years is capped at 20.
Your average weekly pay over the 12 weeks before your redundancy notice. Capped at £751/week for the calculation.
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You qualify for statutory redundancy pay
With 10 qualifying years of service, you are entitled to 12 weeks' pay at £600.00/week.
Statutory Redundancy Pay
£7,200.00
Weeks of Pay
12 weeks
Week's Pay Used
£600.00
Tax Due
£0.00 — tax-free
Years aged 41 or over
4 years × 1.5 weeks = 6 weeks' pay
£3,600.00
Years aged 22 to 40
6 years × 1 week = 6 weeks' pay
£3,600.00
Years count backwards from your last day of work. Each full year is placed in the band for the age you were during that year.
Weekly pay cap — £751.00
Your weekly pay of £600.00 is below the cap, so your full weekly pay is used.
Service cap — 20 years
Your 10 years of service are within the 20-year cap.
Maximum total — £22,530.00
The most anyone can get is £22,530.00 (30 weeks at the weekly cap).
Statutory redundancy pay is always tax-free because the maximum (£22,530.00) is below the £30,000.00 tax-free limit for termination payments. If your employer pays you extra redundancy money on top, only the part of your total package above £30,000.00 is taxed.
Key Information
You must claim within 6 months of your job ending. Your employer may offer more than the statutory minimum — check your contract for an enhanced redundancy scheme. If your employer is insolvent, you can claim from the government's Insolvency Service instead.
Everything you need to know about redundancy pay in the UK
What is statutory redundancy pay?
Statutory redundancy pay is money your employer must pay you by law if you lose your job through redundancy. You normally qualify if you are an employee and you have worked for your employer for at least 2 full years.
How is statutory redundancy pay worked out?
It is based on your age, your years of service, and your weekly pay. You get half a week's pay for each full year you worked when you were under 22, one week's pay for each full year aged 22 to 40, and one and a half weeks' pay for each full year aged 41 or older. Years are counted backwards from the day your job ends.
What are the caps on statutory redundancy pay?
There are three caps for redundancies from 6 April 2026. Your weekly pay is capped at £751, even if you earn more. Your length of service is capped at 20 years. The most you can get in total is £22,530.
Do I pay tax on redundancy pay?
No tax is due on redundancy pay under £30,000. The most statutory redundancy pay you can get is £22,530, so it is always tax-free. If your employer adds extra money on top, anything above £30,000 in total is taxed as income.
What counts as a week's pay?
Your weekly pay is the average you earned per week over the 12 weeks before the day you got your redundancy notice. If your pay changes week to week, add up those 12 weeks and divide by 12.
How long do I have to claim?
You have 6 months from the date your job ends to claim statutory redundancy pay from your employer. If your employer refuses to pay, you can take your claim to an employment tribunal.
GOV.UK-Aligned: This calculator uses the official statutory redundancy limits that apply from 6 April 2026 (£751 weekly pay cap, 20-year service cap, £22,530 maximum). Results are indicative — for complex situations, such as insolvency or disputed dismissal dates, get advice from ACAS or an employment solicitor.
This calculator uses official rates and thresholds from:
- Redundancy: your rights — redundancy pay
- Calculate your statutory redundancy pay
- Redundancy: your rights — tax and National Insurance
Last verified: August 2026 · Tax year 2026/27. Results are indicative — consult a qualified accountant for personalised advice.
Reviewed by M. Samiuddin Quadri, ACCA — Chartered Certified Accountant at Gladstone & Co. · Updated for the 2026/27 tax year.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2026/27 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms
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