How is UK statutory redundancy pay calculated?

Statutory redundancy pay is based on your age, length of service (up to 20 years) and weekly pay (capped at £700 for 2025). You get 0.5 week's pay for each full year under 22, 1 week's pay for each full year aged 22-40, and 1.5 weeks' pay for each full year aged 41 or over.

What is the maximum statutory redundancy pay in 2025?

The maximum statutory redundancy pay in 2025 is £21,000. This is based on 20 years' service at the maximum weekly pay cap of £700, with the highest age multiplier of 1.5 weeks per year.

Is redundancy pay taxable in the UK?

Statutory redundancy pay is tax-free up to £30,000. Any amount above this threshold may be subject to income tax. Your employer should handle the tax deduction through PAYE.

Do I qualify for statutory redundancy pay?

You qualify if you've been continuously employed by your employer for 2 or more years and you're being made redundant. This applies to employees, not contractors or self-employed workers.

Can my employer pay more than the statutory minimum?

Yes. Many employers offer enhanced redundancy packages that exceed the statutory minimum. Check your employment contract or company policy. The statutory amount is the legal minimum your employer must pay.

What is the weekly pay cap for redundancy in 2025-26?

The weekly pay cap for statutory redundancy calculations is 700 pounds for the tax year 2025-26. If your actual weekly pay is higher, the calculation is capped at this amount.

How many years of service count for redundancy pay?

A maximum of 20 years of continuous service is counted. Service before the age of 18 does not count. Only complete years of service are included in the calculation.

What happens if I am made redundant during my notice period?

You are entitled to both your notice pay and your statutory redundancy pay. These are separate entitlements. Your employer cannot deduct one from the other unless your contract states otherwise.

Do part-time workers get redundancy pay?

Yes. Part-time workers have the same statutory redundancy rights as full-time workers, provided they meet the two-year continuous service requirement. The calculation uses your actual weekly pay, not a full-time equivalent.

Can I claim redundancy pay if my company goes bankrupt?

Yes. If your employer is insolvent, you can claim statutory redundancy pay from the government's Redundancy Payments Service (RPS). The Insolvency Service handles payments on behalf of insolvent employers.

Last updated: 28.03.2026

United Kingdom

UK Statutory Redundancy Pay Calculator 2026

Calculate UK statutory redundancy pay from age, years of service, and weekly pay using current UK government caps and multipliers.

This calculator provides estimates based on statutory minimums only and does not constitute legal or financial advice. UK statutory redundancy pay is not regulated by the FCA. Always consult a qualified employment lawyer for advice specific to your situation.

Calculate Your Redundancy PayUpdates instantly

Enter your details below. Weekly pay is capped at £700.

Example: 30 years old, £600/week, 8 years of service

£4,800estimated statutory redundancy pay

8 statutory weeks£600 effective weekly pay

Enter your details above for a precise calculation.

Redundancy Pay Example (UK)

Example scenario:

Age: 45
Continuous service: 10 years
Weekly pay used for calculation: £700 cap

For years worked after age 41, each full year counts as 1.5 weeks. In this simplified example, statutory redundancy pay is approximately £10,500 before any enhanced employer package.

What Increases Your Final Package?

Statutory redundancy is the legal minimum. Your total package can be higher if your contract or employer policy includes enhanced terms.

Also check related rights such as notice periods and annual leave impacts with UK Notice Period Calculator and UK Holiday Entitlement Calculator.

UK Statutory Redundancy Pay Calculator 2026 FAQ

Source: https://www.gov.uk/calculate-your-redundancy-pay

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UK Statutory Redundancy Pay Calculator 2026 FAQ