Redundancy Pay Calculator
Calculate your UK statutory redundancy pay — updated for 2026 (weekly pay cap: £751)
Common Questions
How is statutory redundancy pay calculated?
UK statutory redundancy pay uses an age-weighted formula based on your years of service:
- Under 22: half a week's pay per year of service
- 22–40: one week's pay per year of service
- 41 or over: one and a half weeks' pay per year of service
Your weekly pay is capped at £751 (2026 figure) and service is capped at 20 years, giving a maximum payment of £22,530.
Is redundancy pay taxable?
The first £30,000 of your total redundancy payment is entirely tax-free. Any amount above £30,000 is taxed as income at your marginal rate. Note this includes any enhanced redundancy pay your employer offers, not just the statutory minimum.
What if my employer refuses to pay redundancy?
If your employer refuses to pay statutory redundancy pay, you can apply to an Employment Tribunal within 6 months of your dismissal date. You can also contact ACAS (0300 123 1100) for free, confidential advice. If your employer is insolvent, you may be able to claim from the government's Redundancy Payments Service.
Does my employer have to give me more than the statutory minimum?
Statutory redundancy pay is the legal minimum. Your employment contract may entitle you to enhanced or "contractual" redundancy pay — this is often higher and may be based on your actual salary rather than the capped figure. Always check your contract and any company redundancy policy.
What is the weekly pay cap for redundancy in 2026?
The weekly pay cap for statutory redundancy calculations is £751 in 2026 (increased from £643 in 2025). Even if you earn more than this, the calculation uses £751 as the maximum weekly pay figure. This cap is reviewed by the government each April.
Enter your details and click calculate to see your redundancy pay entitlement.
2026 Key Figures
- Weekly pay cap: £751
- Max weeks: 30 weeks
- Maximum payment: £22,530
- Tax-free up to: £30,000
- Minimum service: 2 years
- Max service counted: 20 years
Need Further Help?
- ACAS Helpline: 0300 123 1100
- Citizens Advice: citizensadvice.org.uk
- Employment Tribunal: gov.uk/employment-tribunals
How to Calculate Statutory Redundancy Pay in the UK
Statutory redundancy pay is a legal right for UK employees who have been continuously employed for at least two years and have been made redundant. The calculation uses a formula that takes into account three factors: your age at the time of redundancy, your length of continuous employment (up to a maximum of 20 years), and your gross weekly pay (capped at £751 in 2026).
The age-banding system means that older workers receive higher entitlements: workers aged 41 and over receive one and a half weeks' pay for each year of service, those aged 22 to 40 receive one week's pay per year, and those under 22 receive half a week's pay per year. If you were in different age bands during your employment, the calculation applies the appropriate rate to each period.
Many employers offer enhanced redundancy pay above the statutory minimum, particularly in larger organisations or where redundancy terms are negotiated through trade unions. Always check your employment contract and company policies — the statutory figure is a floor, not a ceiling.