Statutory Redundancy Pay Calculator
Work out exactly what you are owed by law, with the full age-banded calculation shown — not just a total. Updated for the current statutory caps.
Calculate Your Entitlement
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How the calculation works
Statutory redundancy pay is a formula set by the Employment Rights Act 1996. It counts backwards from the age you leave, awarding a different number of weeks for each year of service depending on how old you were in that year.
½ week
Per year under 22
Half a week’s pay for each full year worked while under 22.
1 week
Per year aged 22–40
One week’s pay for each full year worked between 22 and 40.
1½ weeks
Per year aged 41+
One and a half week’s pay for each full year worked aged 41 or over.
A worked example
Someone aged 45 leaving after 12 years, earning £600.00 a week:
- Years worked aged 22–408 × 1 = 8 weeks
- Years worked aged 41 or over4 × 1.5 = 6 weeks
- Total weeks’ pay14 weeks
- Weekly pay used (capped at £751.00)£600.00
- Statutory redundancy pay£8,400.00
The two caps that limit your payment
Two statutory limits apply no matter how much you earn or how long you have worked. They are the reason a high earner with long service does not receive a proportionally larger payment.
| Limit | Great Britain | Northern Ireland |
|---|---|---|
| Maximum week’s pay counted | £751.00 | £783.00 |
| Maximum total statutory payment | £22,530.00 | £23,490.00 |
| Maximum years of service counted | 20 years | 20 years |
Tax on your redundancy payment
Statutory redundancy pay is tax free. The wider rule is that the first £30,000.00 of a termination package escapes income tax and National Insurance — but not every part of your package counts towards that threshold.
Counts towards the £30,000.00
- • Statutory redundancy pay
- • Enhanced or contractual redundancy pay
- • Ex-gratia and compensation payments
Always taxed as earnings
- • Payment in lieu of notice (PILON)
- • Accrued but untaken holiday pay
- • Outstanding salary and bonuses
What this calculator does not include
Redundancy pay is only one part of what you are owed. These are separate entitlements and you may be due all of them.
Common questions
How is statutory redundancy pay calculated?
It is based on three things: your age, your length of continuous service, and your weekly gross pay. You get half a week’s pay for each full year worked under age 22, one week’s pay for each full year aged 22 to 40, and one and a half week’s pay for each full year aged 41 or over. Length of service is capped at 20 years and weekly pay is capped by law.
How much service do I need to qualify for redundancy pay?
You need at least two full years of continuous service with the same employer. With less than two years you get no statutory redundancy pay, though you are still entitled to your notice pay and any accrued holiday pay.
Is my weekly pay capped?
Yes. However much you actually earn, only the first £751.00 a week counts towards statutory redundancy pay in Great Britain. The total statutory payment is also capped at £22,530.00. Northern Ireland has its own separate limits.
Do I pay tax on statutory redundancy pay?
Statutory redundancy pay is tax free. More broadly, the first £30,000.00 of a termination package is free of income tax and National Insurance. Anything above that is taxable, and payments in lieu of notice and accrued holiday pay are always taxed as normal earnings regardless of the £30,000.00 threshold.
Does statutory redundancy pay include my notice pay?
No. Redundancy pay, notice pay and accrued holiday pay are three separate entitlements and you may be owed all three. Statutory redundancy pay compensates you for losing the job; notice pay covers the notice period; holiday pay covers annual leave you accrued but did not take.
What if my employer offers more than the statutory minimum?
Many employers run enhanced redundancy schemes that pay more than the statutory formula, often by using your actual weekly pay instead of the capped figure or by paying more weeks per year of service. The statutory figure is a legal floor, not a ceiling.
See the full entitlement table
Prefer to look it up rather than calculate it? The reference table shows the number of weeks’ pay due for every combination of age and length of service.