Statutory Redundancy Pay Calculator
Statutory redundancy pay from age, years of service and weekly pay, or from exact dates: the half, one and one-and-a-half week bands, the £751 weekly cap from 6 April 2026 (£783 in Northern Ireland), the 20-year limit, statutory notice, and tax and NI on the whole package above the £30,000 tax-free threshold.
How it works
½ week’s pay for each complete year of service under 22, 1 week for each year aged 22–40, 1½ weeks for each year aged 41+; counted back from the relevant date, at most 20 years; week’s pay capped at £751 (GB) or £783 (NI) from 6 April 2026, so at most £22,530 (GB) or £23,490 (NI); the first £30,000 of redundancy pay is tax-free; notice and holiday pay are taxed as earnings
Statutory redundancy pay is the legal minimum after two years’ continuous service. It is worked out year by year, counting back from the relevant date (normally when your notice ends): each complete year counts half a week’s pay if you were under 22 throughout it, one week if you were 22 to 40, and one and a half weeks if you were 41 or over. Only the last 20 years count, and a week’s pay is capped. From 6 April 2026 the cap is £751 in England, Scotland and Wales, a maximum of £22,530, and £783 in Northern Ireland, a maximum of £23,490. You can enter age and years, or exact dates of birth, start and leaving. If you are paid in lieu of notice, the statutory notice period is added before counting, which can add a year. Pay can be entered weekly, monthly or yearly. Many employers pay more under contractual schemes: enter that on top. The first £30,000 of redundancy pay is tax-free, but notice pay and holiday pay are ordinary taxable earnings. Under More options the calculator estimates the tax and NI on those parts and your take-home from the whole package.
Worked example
Age 45 with 12 years’ service on £850 a week, made redundant after 6 April 2026: counting back, 4 years at 1.5 weeks (ages 41–44) and 8 years at 1 week make 14 weeks. Pay is capped at £751, so 14 × £751 = £10,514, all tax-free. Before 6 April 2026 the cap was £719, giving £10,066. In Northern Ireland the same case gets 14 × £783 = £10,962.
Sources: GOV.UK — Redundancy: statutory redundancy pay · Acas — Work out redundancy pay · Department for the Economy (NI) — 2026 increase in redundancy limits · nidirect — Redundancy pay
Frequently asked questions
What counts as a week’s pay?
Normal contractual pay before tax; for variable pay, the average of the 12 weeks before notice, including regular overtime and commission.
Do I get it if I resign?
No — only on dismissal for redundancy (or lay-off/short-time working under the statutory procedure).
What is the maximum statutory redundancy pay in 2026?
For redundancies on or after 6 April 2026 a week’s pay is capped at £751 in England, Scotland and Wales, so the most anyone can get is 20 years × 1.5 weeks × £751 = £22,530. In Northern Ireland the cap is £783, a maximum of £23,490.
Is redundancy pay taxed?
The first £30,000 of statutory and enhanced redundancy pay together is tax-free and has no NI. Anything above is taxed as income, with no employee NI, but the employer pays 15% Class 1A NI on it. Payment in lieu of notice and holiday pay are taxed and have NI like normal wages.
Does notice pay change my years of service?
It can. If your employer pays you in lieu of notice, the statutory minimum notice (one week per complete year, up to 12) is added to your leaving date when counting service. Someone with 8 years 11 months would then count 9 years. Use the exact dates option to see this.
What if my employer cannot pay?
If the employer is insolvent or refuses to pay, you can apply to the Redundancy Payments Service for statutory redundancy pay, notice pay and holiday pay. Claims normally need to be made within 6 months.
Related calculators
Uses the statutory redundancy weekly pay caps for 2025/26 and 2026/27 (GB and Northern Ireland) and 2026/27 income tax and NI rates. Caps change every April — check GOV.UK or nidirect. Educational estimate, not legal or tax advice.