Redundancy Pay Calculator

Last updated: April 2026

Your employment details

Date of birthEmployment start dateEmployment end dateLength of service: 16 years 0 months

Pay input

Weekly gross pay

Average weekly gross pay in the 12 weeks before redundancy.Weekly pay cap

Cap for 2025/26: £700. If your weekly pay exceeds this, only £700 counts.

Statutory redundancy pay

£10,500

Weekly pay used: £500 | Complete service: 16 years

Service summary

Date of birth: 15 Jan 1975
Start of employment: 1 Jun 2010
End of employment: 20 Jun 2026
Complete years of service: 16 years

Year by year breakdown

Year	Your age	Multiplier	Week's pay	Amount
1	50	x 1.5	£500	£750
2	49	x 1.5	£500	£750
3	48	x 1.5	£500	£750
4	47	x 1.5	£500	£750
5	46	x 1.5	£500	£750
6	45	x 1.5	£500	£750
7	44	x 1.5	£500	£750
8	43	x 1.5	£500	£750
9	42	x 1.5	£500	£750
10	41	x 1.5	£500	£750
11	40	x 1	£500	£500
12	39	x 1	£500	£500
13	38	x 1	£500	£500
14	37	x 1	£500	£500
15	36	x 1	£500	£500
16	35	x 1	£500	£500
Total				£10,500

Notice pay

Statutory notice entitlement: 12 weeks
Notice pay value: £6,000

You are also entitled to notice or payment in lieu of notice. Your employer cannot deduct this from your redundancy payment; they are separate entitlements.

Minimum total entitlement

Statutory redundancy: £10,500
Statutory notice pay: £6,000
Minimum total: £16,500

Tax treatment

The first £30,000 of your total redundancy package, statutory and enhanced combined, is tax-free. Your statutory redundancy of £10,500 is well within this threshold. Notice pay is taxed separately as normal earnings.

Enhanced redundancy

Statutory pay is the legal minimum. Many employers offer more, so check your employment contract, staff handbook, and consultation documents.

Do you think your redundancy was unfair?

ACAS provides free, impartial employment advice.

Get free employment advice ->

How is statutory redundancy pay calculated?

Statutory redundancy pay is calculated based on your age, weekly pay capped at £700 in 2025/26, and completed years of service up to 20 years. You receive half a week's pay for each year worked under age 22, one week's pay for each year between 22 and 40, and one and a half week's pay for each year aged 41 or over.

Is redundancy pay taxable?

The first £30,000 of a redundancy payment is tax-free. Above £30,000, the excess is taxed as income through PAYE. Notice pay received as a lump sum is fully taxable.

What if my employer cannot afford to pay redundancy?

If your employer is insolvent and cannot pay statutory redundancy, you can claim from the government's National Insurance Fund through the Insolvency Service. You must apply within 6 months of your employment ending.

Do I qualify if I was on a zero hours contract?

Employees on zero hours contracts can qualify if they meet the 2-year continuous service threshold. Weekly pay is calculated as the average of the 12 weeks worked before redundancy.

About this calculator

The Redundancy Pay Calculator estimates statutory redundancy pay from age, complete years of service, and weekly pay subject to the statutory cap. It helps employees and employers understand the minimum legal payment before checking contract terms or settlement details. Use this expanded guide when you need more than a quick result. It explains the assumptions behind the Redundancy Pay Calculator, the records to gather, and the decisions the estimate can support. It is especially useful for employees, employers, HR teams, and advisers checking statutory redundancy pay before comparing enhanced packages or settlement offers. The strongest use of the page is scenario comparison: change one input at a time, compare the output, and keep a note of which assumption changed.

Statutory redundancy pay method

Statutory redundancy pay is based on complete years of service, age during each year, and weekly pay capped at the statutory weekly limit. The calculator result depends on the quality of the inputs and on the rule set or formula selected in the calculator above. For practical use, treat the output as a structured estimate: start with the core inputs, review the main outputs, then test the decision points that matter most to your situation. Key decisions include whether two years service is met, how age bands affect the payment, whether contractual redundancy terms are better.

under 22: 0.5 week pay per complete year
22 to 40: 1 week pay per complete year
41 and over: 1.5 weeks pay per complete year
better estimate = accurate inputs + correct rule set + realistic assumptions
scenario difference = revised result - original result

How to use the redundancy pay calculator

Enter age or date of birth.
Enter employment start and redundancy dates.
Enter gross weekly pay.
Review complete years of service and the statutory cap applied.
Compare the statutory estimate with any enhanced contractual redundancy scheme.
Gather the main inputs first: age during each year of service, complete years of service, weekly pay.
Check supporting records such as employment start date and redundancy notice before relying on a final number.
Enter one realistic scenario first, using conservative assumptions where the future is uncertain.
Review the main outputs: statutory redundancy pay, service years counted, weekly pay cap effect.
Run at least one alternative scenario so you can see which input changes the answer most.
Compare the result with GOV.UK redundancy rights guidance or the relevant contract, bill, statement, or professional document.
Keep the calculation date and assumptions with your notes so you can revisit the estimate when rates, rules, or circumstances change.

Worked example

Service age band estimate

Input: Employee age 45, 8 complete years, weekly pay capped at GBP700

Calculation: Years from age 41 onward can count at 1.5 weeks per year depending on service history.

Result: The calculator totals each age band and applies the weekly pay cap.

Age-band scenario

Input: An employee has service before and after age 41.

Calculation: Each complete year is multiplied by the age-band factor for that year.

Result: The total can be higher than one week per year for years worked aged 41 or over.

Enhanced package scenario

Input: The employer offers statutory pay plus an extra two weeks pay.

Calculation: Statutory pay is calculated first, then the enhancement is added separately.

Result: The employee can see the legal minimum and the extra value of the offer.

Statutory versus enhanced redundancy pay

Statutory redundancy pay is the legal minimum for eligible employees. Some employers offer enhanced redundancy pay through contracts, policies, collective agreements, or settlement negotiations. Notice pay and holiday pay are separate from statutory redundancy pay.

What to check before relying on the result

A useful Redundancy Pay Calculator result starts with the same evidence you would use if you were checking the answer manually. The calculator can organise the arithmetic, but it cannot know whether a payslip is final, a bill is estimated, a quote excludes fees, or a personal circumstance has changed since the last statement.

Before making a decision, compare the calculator result with the source document that controls the real outcome. For this topic, that usually means checking GOV.UK redundancy rights guidance. If there is a difference between the calculator and an official statement, contract, assessment, or professional advice, treat the official document as the stronger source.

employment start date: Use this as supporting evidence for the calculation. If it is out of date, estimated, or based on a different period, the calculator output may look precise while still being wrong for the decision.
redundancy notice: Use this as supporting evidence for the calculation. If it is out of date, estimated, or based on a different period, the calculator output may look precise while still being wrong for the decision.
weekly pay evidence: Use this as supporting evidence for the calculation. If it is out of date, estimated, or based on a different period, the calculator output may look precise while still being wrong for the decision.
contract or redundancy policy: Use this as supporting evidence for the calculation. If it is out of date, estimated, or based on a different period, the calculator output may look precise while still being wrong for the decision.

Inputs that usually change the answer

The most important input is not always the largest number on the form. Sometimes a date, threshold, percentage, eligibility flag, or timing assumption changes the result more than the headline amount. This is why scenario testing is more useful than a single calculation.

Input	Why it matters	What to double-check
age during each year of service	It feeds directly into the estimate or changes which rule is applied.	Check the period, units, eligibility, and whether the figure is final or estimated.
complete years of service	It feeds directly into the estimate or changes which rule is applied.	Check the period, units, eligibility, and whether the figure is final or estimated.
weekly pay	It feeds directly into the estimate or changes which rule is applied.	Check the period, units, eligibility, and whether the figure is final or estimated.
statutory weekly cap	It feeds directly into the estimate or changes which rule is applied.	Check the period, units, eligibility, and whether the figure is final or estimated.
redundancy date	It feeds directly into the estimate or changes which rule is applied.	Check the period, units, eligibility, and whether the figure is final or estimated.

How to interpret the output

The output should be read as a decision aid, not just a number. For Redundancy Pay Calculator, the useful question is often what the result means for timing, affordability, eligibility, comparison, or next steps.

statutory redundancy pay: Use this output alongside the other results rather than in isolation. A monthly amount, percentage, date, or payback figure can look acceptable until fees, timing, evidence, or eligibility conditions are added.
service years counted: Use this output alongside the other results rather than in isolation. A monthly amount, percentage, date, or payback figure can look acceptable until fees, timing, evidence, or eligibility conditions are added.
weekly pay cap effect: Use this output alongside the other results rather than in isolation. A monthly amount, percentage, date, or payback figure can look acceptable until fees, timing, evidence, or eligibility conditions are added.
comparison with enhanced offer: Use this output alongside the other results rather than in isolation. A monthly amount, percentage, date, or payback figure can look acceptable until fees, timing, evidence, or eligibility conditions are added.

Scenarios worth comparing

A single estimate is a snapshot. A better approach is to save a base case, then adjust one assumption at a time. This shows whether the result is stable or whether a small change in timing, rate, usage, income, or cost creates a very different answer.

Scenario	Change one assumption	What the comparison shows
Base case	Use the best current evidence.	Shows the result you would expect if nothing important changes.
Conservative case	Use lower income, higher cost, slower growth, or less favourable timing.	Shows whether the decision still works with less optimistic assumptions.
Improved case	Use the realistic upside, such as lower cost, better rate, higher usage, or stronger evidence.	Shows the potential benefit without treating it as guaranteed.

Common mistakes and edge cases

Most errors come from using the right formula with the wrong assumption. Dates can be counted differently, rates can change, official thresholds can move, and real bills or contracts often include conditions that a simple calculator cannot infer automatically.

Only complete years of service count.: Check this point before using the estimate for a payment, claim, purchase, application, employment decision, or health-related decision.
Length of service is capped for statutory pay.: Check this point before using the estimate for a payment, claim, purchase, application, employment decision, or health-related decision.
Notice pay and holiday pay are separate.: Check this point before using the estimate for a payment, claim, purchase, application, employment decision, or health-related decision.
Weekly pay caps change by tax year.: Check this point before using the estimate for a payment, claim, purchase, application, employment decision, or health-related decision.

Next steps after calculating

Once you have a result, write down the key assumptions and compare them with GOV.UK redundancy rights guidance. If the number affects a deadline, tax return, benefit claim, employment issue, medical question, finance agreement, or major purchase, use the calculator as preparation for a more formal check.

For lower-stakes use, the next step may simply be comparing two or three scenarios. For higher-stakes use, the next step should be checking the official guidance, speaking to the relevant organisation, or getting qualified advice before acting.

Important edge cases

Only complete years of service count.
Length of service is capped for statutory pay.
Notice pay and holiday pay are separate.
Weekly pay caps change by tax year.

Limitations

This calculator is general information only and is not employment legal advice. This is general employment information and not legal advice. The calculator is designed to support understanding and planning, but it cannot verify documents, predict future rule changes, or account for every exception. Use it as an estimate and check the official source before acting where the result matters.

Weekly pay caps and maximum awards can change.
Eligibility can depend on employment status and service.
Check GOV.UK, ACAS, or a qualified adviser for disputes.
Check GOV.UK redundancy rights guidance for current rules, rates, definitions, and eligibility where relevant.
Do not rely on a single scenario where income, costs, dates, rates, usage, or health circumstances may change.
Keep records of the inputs used so that the estimate can be reviewed later.

Frequently asked questions

Do I need two years of service?

Statutory redundancy pay normally requires at least two years continuous employment.

Is notice pay included?

No. Notice pay is separate from statutory redundancy pay.

Can my employer pay more?

Yes. Enhanced redundancy terms can provide more than the statutory minimum.

Does overtime count in weekly pay?

It depends on pay rules and what counts in the relevant average. Check GOV.UK guidance and payroll records.

Can redundancy pay be reduced for part-time workers?

Weekly pay reflects the worker pay, but part-time workers should not be treated less favourably because of part-time status.

What if I am offered suitable alternative work?

Refusing suitable alternative employment can affect redundancy pay, so get advice if unsure.

Related calculators

Notice Period Calculator
Holiday Entitlement Calculator
Unfair Dismissal Compensation Calculator
Take-Home Pay Calculator

What does this mean?

This calculator is designed to help you understand the likely number before you make a decision or start an application.

Your result should be checked against official UK guidance, especially if your circumstances include dependants, exemptions, prior leave, or a complex immigration history.

Treat the figure as a planning tool rather than legal advice. Where the answer affects an application deadline or major payment, speak to an authorised adviser.