Statutory Redundancy Pay Calculator
Estimate your UK statutory redundancy payment based on age and service.
How it works
Statutory redundancy pay in the UK is calculated using a formula based on three things: your age during each year of service, your length of continuous service (capped at a maximum number of years), and your weekly pay (capped at a maximum figure set by the government each year). Older age bands receive a higher multiplier per year of service than younger ones, reflecting the statutory formula rather than a flat rate per year worked.
UK context
Statutory redundancy pay is a legal minimum — many employers offer more generous contractual redundancy terms on top of, or instead of, the statutory amount, so it's worth checking your contract or staff handbook. To qualify for statutory redundancy pay you generally need at least two years of continuous service with your employer at the point of redundancy.
Tips
- Statutory redundancy pay is calculated using capped weekly pay and capped years of service figures that are reviewed by the government — always check the current caps on gov.uk, since using an outdated cap will skew the result.
- Redundancy pay is separate from notice pay and any outstanding holiday pay, which are usually owed on top of the redundancy payment itself.
- If you believe your redundancy wasn't handled fairly or you weren't properly consulted, ACAS provides free, impartial guidance on your employment rights.
Frequently asked questions
Who qualifies for statutory redundancy pay?
You generally need at least two years of continuous service with your employer, and need to be an employee (not certain other types of worker) made redundant rather than dismissed for another reason.
Is statutory redundancy pay the same as my contractual redundancy pay?
Not necessarily — statutory redundancy pay is the legal minimum. Many employers offer enhanced contractual redundancy terms that pay more than the statutory formula; check your employment contract or staff handbook.
Is redundancy pay taxed?
Statutory redundancy pay is generally not subject to Income Tax or National Insurance up to a threshold set by the government, though any pay in lieu of notice or other payments made alongside it may be taxed differently — check gov.uk or ask a tax adviser for your specific situation.
What if I disagree with my redundancy payment or process?
ACAS (the Advisory, Conciliation and Arbitration Service) provides free, impartial advice on redundancy rights and can help if you believe the process or payment wasn't handled correctly.
A quick note
Figures and thresholds referenced above (tax bands, VAT rates, redundancy caps and similar) are set by the government and reviewed periodically — this page explains how the calculation works, not necessarily today's exact numbers. Always check the official sources below before making a financial decision, and see our full disclaimer.