Government Redundancy Calculator for Employers: What to Check

The government redundancy calculator for employers is useful, but it is not a substitute for checking the employment facts behind the numbers. It helps employers work out statutory redundancy pay based on age, weekly pay, and years of service. It does not decide whether the employee qualifies, whether continuity is disputed, or whether the business is also promising something more generous than the statutory minimum.

GOV.UK provides an employer-facing calculator at calculate your employee’s statutory redundancy pay.

What the government calculator is good at

The official employer calculator is helpful for the statutory minimum because it is aligned to the statutory framework and asks for the core inputs:

• age
• weekly pay
• number of years in the job

It also reflects the cap and age-banding rules published in the government redundancy guidance.

What it does not decide for you

The calculator is not an HR decision-making tool. Employers still need to decide:

• whether the employee has at least 2 years of continuous service
• whether TUPE or related continuity issues apply
• what average weekly pay should be used
• whether there is an enhanced contractual redundancy scheme
• whether notice pay and holiday pay need to be paid separately

Those are not small issues. They are often the reason disputes start.

The 2026 statutory framework employers should remember

For dismissals on or after 6 April 2026, GOV.UK states:

Rule	2026 position
Weekly pay cap	GBP751
Maximum statutory redundancy pay	GBP22,530
Service counted	Up to 20 years

The age multipliers remain:

• 0.5 week’s pay for each full year under age 22
• 1 week’s pay for each full year aged 22 to 40
• 1.5 weeks’ pay for each full year aged 41 and over

Why employers should still run a parallel check

Even if you use the government calculator, it can still help to compare the result with the Redundancy Pay Calculator on this site. That second check often catches:

• a service date entered incorrectly
• a cap misunderstanding
• a weekly pay figure based on assumption instead of records

For group redundancies, small input errors can multiply across the whole budget.

A practical employer checklist

Before issuing the final figure, check:

Employer check	Why it matters
Start date and continuity	Service length drives entitlement
Date notice was given	Weekly pay averaging is tied to notice timing
Any TUPE history	Transferred service may count
Any enhanced policy	Contractual payments may exceed statutory minimum
Written explanation	Employees are entitled to see how it was worked out

The written explanation point is important. GOV.UK states that a redundant employee has the right to a written statement showing the amount of redundancy payment and how it was calculated.

Common employer mistakes

• assuming payroll can calculate redundancy without HR input
• using current salary loosely instead of average weekly pay
• forgetting that service is capped at 20 years
• treating the statutory minimum as the whole termination package

The last mistake is especially risky because notice pay, accrued holiday, and enhanced sums often sit alongside statutory redundancy pay.

Frequently Asked Questions

Is the government redundancy calculator for employers enough on its own?

Not always. It helps with the statutory formula, but employers still need to verify service, continuity, weekly pay, and whether any enhanced redundancy terms apply.

What weekly pay cap should employers use in 2026?

For dismissals on or after 6 April 2026, GOV.UK states that the statutory weekly pay cap is GBP751.

Do employers have to show how the redundancy figure was calculated?

Yes. GOV.UK says employees have the right to a written statement setting out the amount of redundancy payment and how it was worked out.

Should employers compare results with another calculator?

That is often sensible. A second check can help catch input errors before the final figure is issued to employees.

The Bottom Line

The government redundancy calculator for employers is a strong starting point for statutory redundancy pay, but it still depends on accurate employment facts. Check continuity, weekly pay, notice timing, and any enhanced terms before relying on the result. Then compare it with the Redundancy Pay Calculator as a practical second check.