Statutory redundancy pay calculator

"Statutory redundancy pay is up to 20 years’ service at ½, 1 or 1½ weeks’ pay a year depending on your age, with weekly pay capped at £751 for 2026/27, so the most you can receive is £22,530. Enter your age, years of service and salary to see your figure."

How is statutory redundancy pay calculated?

Statutory redundancy pay is calculated using a formula based on your age, length of continuous service (up to a maximum of 20 years), and your weekly pay (capped at £751/week for 2026/27) (ERA 1996 s.162; Employment Rights (Increase of Limits) Order 2026). For each full year of service: 0.5 week's pay if you were under 22, 1 week's pay if aged 22–40, and 1.5 weeks' pay if aged 41 or over. The maximum statutory payment is £22,530.

Am I entitled to statutory redundancy pay?

You are entitled to statutory redundancy pay if you have been continuously employed for at least 2 years, you have been dismissed by reason of redundancy, and you are an employee (not self-employed or a worker). Some categories — agency workers, share fishermen, employees who unreasonably refuse suitable alternative employment — may not qualify. Statutory redundancy is a legal minimum; your contract may provide for enhanced redundancy pay.

Is redundancy pay taxable?

The first £30,000 of a redundancy payment is usually tax-free. This applies to both statutory and contractual (enhanced) redundancy pay. Any amount over £30,000 is subject to income tax and may also attract National Insurance contributions. Payments in lieu of notice (PILON), accrued holiday pay, and other contractual payments are taxable in full and should be separated from the redundancy element.

How much is statutory redundancy pay in 2026/27?

Up to £22,530. That is 20 years' service at 1½ weeks' pay, with weekly pay capped at £751.

Is the unfair dismissal basic award calculated the same way as redundancy pay?

Yes. The basic award uses the same formula as statutory redundancy pay (ERA 1996 s.119): the same age bands, a limit of 20 years and the same weekly pay cap of £751, so the most it can be is £22,530. A tribunal can reduce a basic award in some circumstances.

Do I get notice pay as well as redundancy pay?

Usually, yes. Notice pay is separate from redundancy pay. Statutory notice is normally one week after a month of service, one week per complete year from two years, and at most 12 weeks. A longer contractual period can apply.

Can I challenge my redundancy?

Yes. You may have grounds to challenge your redundancy if the selection criteria were discriminatory or unfairly applied, if genuine redundancy didn't exist (the role has been refilled), if you weren't properly consulted, or if the redundancy procedure wasn't followed. You can raise a formal grievance internally, or bring a claim at the Employment Tribunal for unfair dismissal. Strict time limits apply from the effective date of termination; the date and any Acas early conciliation affect the calculation. Check the current deadline promptly.

What is the redundancy consultation process?

Employers must consult employees before making them redundant. For fewer than 20 redundancies, there is no statutory minimum consultation period, but a reasonable period is required. For 20–99 proposed redundancies at one establishment within 90 days, collective consultation must start at least 30 days before the first dismissal. For 100 or more, it must start at least 45 days before the first dismissal. Individual consultation must happen regardless of the numbers — failing to consult can make the dismissal unfair.

Can I claim unfair dismissal as well as redundancy pay?

Yes. If your redundancy was not genuine, the selection was unfair or discriminatory, or the employer did not follow a fair process, you can claim unfair dismissal in addition to redundancy pay. The tribunal will assess whether redundancy was the true reason for dismissal, whether selection was fair and applied consistently, and whether the employer took reasonable steps to find alternative employment.

Statutory Redundancy Pay Calculator UK | Start My Claim

Free statutory redundancy pay calculator

Free statutory redundancy pay calculator for UK employees. Illustrates statutory redundancy and notice pay; holiday pay is not calculated. No sign-up required.

Redundancy pay calculator

Statutory redundancy pay normally requires two years of continuous employment, so this estimate is £0. Your contract may provide a separate payment.

2026/27 cap: £751/wk

This illustration assumes the normal qualifying conditions are met and does not calculate holiday pay. Notice is a gross-pay illustration; pay owed depends on whether notice was worked or paid and on your contract. Your contract may provide enhanced redundancy pay. Explore employment compensation using your own loss figures →

Statutory redundancy payment calculator: how it is worked out

The statutory formula is set by the Employment Rights Act 1996.[1] Your payment depends on three factors: your age, your length of service, and your weekly pay.

Only the last 20 years of service count

Weekly pay cap (2026/27)

If you earn more, only £751 is used

20 yrs × 1.5 × £751 = £22,530 maximum

Basic award calculator for unfair dismissal

The basic award in an unfair dismissal claim is worked out with the same formula as statutory redundancy pay (Employment Rights Act 1996 s.119): the same age bands, the same limit of 20 years and the same weekly pay cap of £751, so the most it can be is £22,530. Put your own age, years of service and salary into the calculator above to see the formula figure. A tribunal can reduce a basic award in some circumstances, so treat it as the starting point.

Example 2: pay above the cap

The most you can receive is £22,530: 20 years × 1½ weeks × £751.

Notice pay is separate

Statutory notice is normally one week after a month of service, one week per complete year from two years, and at most 12 weeks; a longer contractual period can apply. Read more about notice pay and pay in lieu of notice.

Enhanced, NHS or contractual schemes

Your contract, a collective agreement or a staff handbook may give you more than the statutory minimum. This calculator shows the statutory floor only.

TUPE transfers and company directors

When a business changes hands under TUPE, your continuity of service moves with you to the new employer. See TUPE explained.

Statutory redundancy pay is for employees. A company director can be an employee as well, depending on how they actually work, not their title. See claims by company directors.

Redundancy pay is just the start

Many employees leave money on the table by only claiming statutory redundancy. Here is what else you may be owed.

If your employer did not give you your full contractual or statutory notice, you are owed payment in lieu. Statutory notice is normally one week after a month of service, one week per complete year from two years, and at most 12 weeks; a longer contractual period can apply.

Any untaken statutory holiday entitlement (28 days/year including bank holidays) must be paid out on termination. Many employers calculate this incorrectly — it should be based on your average pay, not just your basic rate.

Unfair dismissal award

If the redundancy was not genuine, the selection criteria were discriminatory or applied unfairly, or the employer didn't consult properly, you may have a claim for unfair dismissal — which can add up to £123,543 on top of your redundancy pay (Employment Rights (Increase of Limits) Order 2026, SI 2026/310).

Check if my redundancy was fair →

Enhanced contractual redundancy

Your employment contract, collective agreement, or a staff handbook may provide for enhanced redundancy pay above the statutory minimum. Check your documentation — these terms are legally binding.

Think your redundancy was unfair?

Redundancy is one of the most misused dismissal routes. Start My Claim helps you identify and challenge it.

If someone else is doing your job within months, the redundancy may not have been genuine.

Selection for redundancy must be fair and objective. Criteria that disadvantage protected groups (age, sex, race, disability) are discriminatory.

Your employer must consult you individually before confirming redundancy — not just tell you it's happening.

Employers must consider suitable alternative employment before making you redundant. Failure to do so can make the dismissal unfair.

Check if my redundancy was fair — free →

How much tribunal compensation?

Calculate basic and compensatory awards.

Unfair dismissal claim

Check your rights and claim process.

Document all losses for your tribunal claim.

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