Redundancy Pay Calculator UK 2026-27
Know your legal minimum before you sign anything.
Work out your statutory redundancy pay exactly as GOV.UK does: age-banded weeks (0.5 / 1 / 1.5 per year of service) × your weekly pay capped at £751 from April 2026 — up to the £22,530 maximum, all of it tax-free.
Statutory minimums — your contract or employer scheme may pay more. Cap verified April 2026.
The GOV.UK formula, exactly
Weeks × capped weekly pay
Walk back through your service, year by year (the most recent 20 count): each year worked at age 41+ earns 1.5 weeks' pay, ages 22–40 earn 1 week, and under-22 years earn half a week. Multiply the total weeks by your gross weekly pay, capped at £751.
Worked example
Age 45 with 10 complete years at £600 a week: four years fell at 41+ (6 weeks) and six years at 35–40 (6 weeks) — 12 weeks × £600 = £7,200, paid tax-free.
What each year of service is worth
| Age during the year | Weeks' pay per year |
|---|---|
| Under 22 | 0.5 |
| 22 – 40 | 1.0 |
| 41 and over | 1.5 |
Limits from 6 April 2026: weekly pay capped at £751 (up from £719), a maximum of 20 years counted, and therefore a ceiling of 30 weeks × £751 = £22,530. If your dismissal date fell before 6 April 2026, the previous £719 cap applies.
The £30,000 exemption — and what falls outside it
Statutory redundancy pay is always tax-free (its £22,530 maximum sits under the £30,000 termination exemption). Employer enhancements share the same £30,000 allowance — a £40,000 package leaves £10,000 taxed as income in the year received, which can brush the 40% band.
Not covered: payment in lieu of notice (PILON) and unused holiday are taxed as normal earnings — employers must separate them on the final payslip. Large packages sometimes benefit from redirecting the taxable slice into your pension; take advice before signing a settlement agreement (which itself requires independent legal advice to be valid).
Notice, holiday, consultation — the rest of the package
Statutory notice: one week per complete year of service, capped at 12 weeks — worked, or paid in lieu (taxable). Unused holiday: paid out and taxed as earnings. Consultation: individual consultation always; where 20+ redundancies are proposed at one establishment, collective consultation of 30 days (45 days for 100+) before the first dismissal.
You're also entitled to reasonable paid time off to look for work during your notice period, and if your employer is insolvent, the Insolvency Service pays statutory entitlements from the National Insurance Fund.
❓ Frequently asked Frequently asked questions
How is statutory redundancy pay calculated?
Age-banded weeks (0.5 under 22, 1 at 22–40, 1.5 at 41+) per complete year of service — most recent 20 years — times weekly pay capped at £751. Maximum £22,530.
Is redundancy pay tax-free?
Statutory pay always is. Employer enhancements share a £30,000 combined exemption; the excess is taxed as income. Notice and holiday pay are taxed normally.
Who qualifies?
Employees with 2+ years' continuous service whose role is genuinely redundant. Unreasonably refusing suitable alternative work can forfeit the entitlement.
What if I earn more than £751 a week?
The statutory calculation still uses £751 — the cap binds. Employer schemes frequently use uncapped salary; check your redundancy policy.
What else am I owed?
Statutory notice (1 week/year, max 12), unused holiday, consultation, and paid time off to job-hunt during notice.
My employer is insolvent — who pays?
The Insolvency Service pays statutory redundancy, notice and holiday from the National Insurance Fund — claim online with your case reference.
Where these figures come from
The formula and limits come from GOV.UK and ACAS — the sources of record for redundancy rights.
- Redundancy pay and the calculator of record — GOV.UK — Redundancy: your rights.
- Statutory limits (weekly cap) — GOV.UK — Rates and thresholds for employers 2026-27.
- Redundancy process and consultation — ACAS — Redundancy.
- Tax on termination payments — GOV.UK — Redundancy payments and tax.
Last checked: July 2026. The £751 cap applies to dismissals from 6 April 2026 and reindexes each April.
Select the question that matches where you are right now.
Your result is the legal minimum your employer must pay — the floor for any negotiation, not the ceiling.
Check the employer's offer against this figure line by line, and confirm notice and holiday are itemised separately on top.
Not legal advice — settlement agreements require independent advice by law, and enhanced schemes vary. ACAS is free and impartial.
The exact GOV.UK formula at the April 2026 limits. All calculations run in your browser.
Three inputs decide everything — and two caps bound them.
Each is worth 50% more. Long-serving older workers approach the £22,530 maximum fastest.
Earnings above £751 a week add nothing to the statutory figure — the gap between statutory and a salary-based enhancement widens with pay.
Eleven years and eleven months counts as eleven. If a service anniversary is near, the dismissal date matters — worth raising in consultation.
The statutory floor is fixed, but the package around it is often negotiable.
Many employers pay enhanced redundancy (uncapped salary, more weeks). The policy may be contractual — ask HR for it in writing.
If the package exceeds £30,000, redirecting the taxable slice into your pension can rescue 20–40% — arrange it before payment.
A dismissal after a service anniversary — or after 6 April when caps rise — can add hundreds legitimately.
The payout is one part of the transition — plan the months around it.