UK redundancy calculator

How much statutory redundancy pay are you entitled to?

Calculate your UK statutory redundancy pay based on 2026/27 HMRC rates — age multipliers, weekly pay cap (£719), and your tax-free £30,000 allowance.

£719

Weekly pay cap 2026/27

Max used in calculation

£30,000

Tax-free threshold

First £30k — no income tax

20 years

Maximum service

Additional years don't count

Your details

Years at this employer

Maximum 20 years counts toward statutory pay.

Your age (at date of redundancy)

Age affects the multiplier (0.5× under 22, 1× at 22–40, 1.5× at 41+).

Gross weekly pay

Capped at £719/week (2026/27 limit). Average your last 12 weeks' pay.

Annual salary (optional — for tax estimate)

Used to estimate tax on any amount above the £30,000 tax-free threshold.

This calculates statutory redundancy pay — the legal minimum. Your contract may entitle you to enhanced redundancy pay. Check your employment contract or HR handbook.

Enter your details to calculate your redundancy pay

Based on HMRC 2026/27 rates. First £30,000 is tax-free.

How statutory redundancy pay is calculated

Your age during serviceWeeks' pay per yearExample (5 years)

Under 22½ week2.5 weeks × £719 = £1,797

22–401 week5 weeks × £719 = £3,595

41 or over1½ weeks7.5 weeks × £719 = £5,392

1
Cap your weekly pay
If your gross weekly pay exceeds £719 (the 2026/27 statutory cap set by HMRC), only £719 is used. Your actual weekly pay may be higher, but the statutory formula uses whichever is lower.
2
Cap your years of service at 20
Only the most recent 20 years of continuous employment count toward statutory redundancy pay. If you've worked for 25 years, only the last 20 are used.
3
Allocate years to age bands — working backwards
The calculation works backwards from your current age. Years worked aged 41+ get 1.5× multiplier (highest rate first), then years at 22–40 get 1×, and years under 22 get 0.5×.
4
Apply the £30,000 tax-free threshold
HMRC exempts the first £30,000 of redundancy pay from income tax. Statutory redundancy pay is rarely above £30,000 (maximum is £21,570 at 20 years × £719 × 1.5), so most people pay no tax on their statutory payment.
5
Estimate tax on any taxable portion
If you enter your annual salary, the calculator estimates tax on any portion above £30,000 using the marginal rate approach — the same method used by the salary calculator.

What if I worked across multiple age bands?

Different multipliers apply for the years worked in each age bracket. For example, if you're 45 with 10 years' service: 4 years over 41 get 1.5× each, and 6 years at 22–40 get 1×. Our calculator handles this automatically.

Frequently asked questions

Do I qualify for statutory redundancy pay?

You qualify if you've been employed continuously by the same employer for at least 2 years and you've been dismissed by reason of redundancy. You must also be an employee (not a contractor or self-employed worker).

Is statutory redundancy pay the same as enhanced redundancy?

No. Statutory redundancy is the legal minimum set by government. Many employers offer enhanced redundancy — which may use your actual uncapped weekly pay, a higher multiplier, or additional weeks' pay. Always check your employment contract or staff handbook.

Will my redundancy payment affect my benefits or Universal Credit?

Yes, potentially. HMRC treats redundancy pay above £30,000 as taxable income. A large redundancy payment can temporarily affect benefits calculations, Housing Benefit, Council Tax Reduction, and Universal Credit entitlement. Seek advice from Citizens Advice if this applies to you.

What if my employer refuses to pay statutory redundancy?

If your employer doesn't pay what you're owed, you can claim from the government's National Insurance Fund. You can also take your employer to an employment tribunal — the time limit is typically 6 months from the date of dismissal.

Does redundancy pay count as income for student loan repayments?

No — the statutory redundancy element (up to £30,000 tax-free) does not count as employment income for student loan purposes. Any taxable element above £30,000 may count; check with the Student Loans Company if in doubt.

Can I receive redundancy and PILON at the same time?

Yes. Payment in lieu of notice (PILON) is separate from redundancy pay. PILON is fully subject to income tax and NI as it replaces what would have been your salary. Your redundancy payment sits alongside it and has its own £30,000 tax-free threshold.