Redundancy Pay Calculator 2026
Calculate your UK statutory redundancy pay entitlement based on your age, years of service and weekly wage. Updated 2025/26.
🕐 Updated June 2026 · HMRC statutory rates 2025/26
Your Details
Only complete years of service count. Maximum 20 years.
£
Capped at £643/week for 2025/26 regardless of actual pay.
Need a custom financial tool for your business?
We build calculators, client portals and digital products that are polished and production-ready.
Frequently Asked Questions
Your statutory redundancy pay depends on your age and years of service: for each full year of service under age 22, you receive 0.5 weeks' pay; between ages 22–40, you receive 1 week's pay; for age 41 and over, you receive 1.5 weeks' pay. Weekly pay is capped at £643 (2025/26) and service is capped at 20 years.
Statutory redundancy pay is tax-free up to £30,000. Any amount above £30,000 (statutory and enhanced combined) is subject to income tax. National Insurance is not charged on redundancy payments.
You must have been continuously employed for at least 2 years to qualify for statutory redundancy pay. You also must not have been dismissed for misconduct, resigned, or accepted voluntary redundancy on different terms.
Some employers offer enhanced redundancy pay above the statutory minimum. This is typically based on your actual weekly pay (without the cap) or a higher multiplier per year of service. Check your employment contract or staff handbook.
Statutory redundancy pay counts a maximum of 20 years of service. You also need at least 2 years of continuous service to qualify at all. Only complete years count — partial years are not included in the statutory calculation.
No. Statutory redundancy pay caps weekly pay at £643 for 2025/26, regardless of how much you actually earn. If your weekly pay is higher, the calculation still uses £643. This is why higher earners often receive enhanced (contractual) redundancy pay that uses their actual salary instead.
Statutory redundancy pay is tax-free up to £30,000. Most statutory payments fall well below this threshold, so you usually receive the full amount with no tax deducted. Amounts above £30,000 (combining statutory and any enhanced pay) may be subject to income tax.
Statutory redundancy pay is the legal minimum set by government, calculated on age, service and capped weekly pay. Enhanced redundancy pay is anything more generous offered by your employer — often using your actual salary without the cap, or a higher multiplier. Check your contract or staff handbook to see if you qualify for enhanced terms.