Statutory Redundancy Pay Calculator
Calculate the minimum redundancy pay you're entitled to under UK law. Many employers offer enhanced packages on top — this is the floor.
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How statutory redundancy is calculated
UK law (Employment Rights Act 1996) sets a minimum redundancy payment based on your age, full years of service and weekly pay:
- 0.5 weeks' pay for each full year you were under 22.
- 1 week's pay for each full year aged 22–40.
- 1.5 weeks' pay for each full year aged 41+.
Two important caps apply:
- Only the most recent 20 years count.
- Weekly pay is capped at £719 from 6 April 2025 (£700 for 2024/25). Even if you actually earned much more, you can't claim above this.
So the maximum statutory redundancy pay in 2025/26 is 20 × 1.5 × £719 = £21,570.
Eligibility
- You must be an employee (not a contractor or worker) with at least 2 years' continuous service.
- The role must genuinely be redundant (the work has gone, or fewer people are needed). Being dismissed for misconduct or capability doesn't qualify.
- Refusing a "suitable alternative role" can void your entitlement.
Tax treatment
The first £30,000 of redundancy pay is tax-free. Any amount above that is taxed as ordinary income (you may also pay NI on contractual elements like notice pay or pay-in-lieu of notice).
Statutory minimum vs enhanced packages
Many employers — especially in finance, the public sector, or for long-tenured staff — offer enhanced redundancy schemes that pay several times the statutory amount. Common formulas include "1 month per year of service" or "2 weeks per year up to 24 weeks". Always check your contract or staff handbook before negotiating.
FAQs
Do I get notice pay on top?
Yes. Statutory redundancy is separate from notice. You're entitled to at least 1 week's notice for each year of service (capped at 12 weeks).
What if I'm on maternity leave?
Your service still counts in full. You can be made redundant during maternity leave, but you must be offered any suitable alternative role available, ahead of other employees.
How quickly should I be paid?
Statutory redundancy is normally paid on or shortly after your last day. If your employer is insolvent, you can claim from the National Insurance Fund via Gov.uk.