Redundancy Pay Calculator: How to Estimate Your Statutory Minimum
Use this guide to understand what a redundancy pay calculator includes, what inputs matter, and how to sense-check the final number.
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A redundancy pay calculator is useful because it turns a legal formula into something practical. But the result is only as good as the inputs. If the service date is wrong, if the weekly pay figure is misunderstood, or if you confuse statutory redundancy with a full exit package, the number can be misleading.
The aim of a good redundancy calculator is to help you estimate the statutory minimum, then compare that with whatever your employer has offered.
What a redundancy pay calculator usually asks for
Most statutory redundancy tools need three core inputs:
| Input | Why it matters |
|---|---|
| Age | Different age bands attract different multipliers |
| Length of service | Only full years count, up to 20 years |
| Weekly pay | The statutory calculation uses weekly pay, subject to a legal cap |
That is the basic structure used in official guidance such as GOV.UK’s redundancy pay calculator.
The age bands behind the calculation
Statutory redundancy pay is worked out using these factors:
- 0.5 week’s pay for each full year worked while under 22
- 1 week’s pay for each full year worked aged 22 to 40
- 1.5 weeks’ pay for each full year worked aged 41 or over
The calculator should apply the right multiplier to each full year counted back from dismissal.
The 2026 cap you need to know
For dismissals on or after 6 April 2026, GOV.UK states that:
- weekly pay is capped at GBP751
- the maximum statutory redundancy pay is GBP22,530
That means a calculator should not use a weekly pay figure above the legal cap when producing the statutory minimum.
What a redundancy pay calculator does not include
This is where people often get confused. A statutory redundancy calculator does not usually include:
- notice pay
- holiday pay
- unpaid wages
- bonus or commission arrears
- settlement-agreement compensation
Those items may be payable when employment ends, but they sit outside the basic statutory redundancy formula.
Worked example
Suppose an employee is 39, has 6 full years of service, and weekly pay of GBP600.
If all 6 years fall into the 22 to 40 band:
6 x 1 week = 6 weeks
6 x GBP600 = GBP3,600
That is the kind of estimate a redundancy calculator is built to produce quickly.
Use the Redundancy Pay Calculator to run your own figures.
When a calculator result should make you pause
Slow down and review the inputs if:
- the employer has ignored earlier service after a TUPE transfer
- the weekly pay figure seems lower than recent average earnings
- the result seems to include notice pay or settlement tax
- there is an enhanced contractual redundancy policy
A calculator is not a substitute for checking the employment documents behind the numbers.
A quick checklist before relying on the answer
| Check | Reason |
|---|---|
| Start date | Affects length of service |
| Dismissal date | Affects which age bands are used |
| Weekly pay averaging | Can change the statutory number |
| Enhanced policy | May increase the final package |
| Other sums due | Notice and holiday should be separate |
Frequently Asked Questions
Is a redundancy pay calculator accurate?
It can be very accurate for the statutory minimum if the inputs are correct. Most errors come from wrong service dates, wrong weekly pay figures, or confusion about what the calculator is designed to include.
Does a redundancy pay calculator include enhanced redundancy?
Not usually. A statutory redundancy calculator is typically focused on the legal minimum. Enhanced schemes should be checked separately against the contract or policy.
What weekly cap should a redundancy pay calculator use in 2026?
For dismissals on or after 6 April 2026, GOV.UK states that weekly pay is capped at GBP751 for the statutory calculation.
Can I use a redundancy pay calculator if I am an employer?
Yes. Employers often use the same statutory logic, but they should still verify service, weekly pay, and any enhanced redundancy terms before issuing a final figure.
The Bottom Line
A redundancy pay calculator is best used as a structured estimate of the statutory minimum, not as a full exit-package tool. Check service, age, and weekly pay carefully, then compare the result with your employer’s written breakdown. Use the Redundancy Pay Calculator to do that in a few minutes.