How much redundancy pay are you owed?

Use our free calculator to get an instant estimate of your statutory redundancy pay, notice pay, and holiday pay entitlement — based on the 2026/27 government figures.

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.

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. The 3-month time limit applies from the date of your dismissal.

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 or more redundancies at one establishment within 90 days, collective consultation 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. Calculates basic award, notice pay, and holiday pay entitlement. No sign-up required.

Redundancy pay calculator

2026/27 cap: £751/wk

This is your statutory minimum. Your contract may provide enhanced redundancy pay.

Redundancy Pay Calculator

How much redundancy pay

How statutory redundancy pay is calculated

The statutory formula is set by the Employment Rights Act 1996.

Your payment depends on three factors: your age, your length of service, and your weekly pay.

Age at each year of service	Entitlement per year
Under 22	½ week's pay
22 to 40	1 week's pay
41 and over	1½ weeks' 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

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 1 week per year of service, up to 12 weeks.

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 →

Redundancy pay — common questions

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.

Know exactly what you're owed.

Get a full breakdown — redundancy pay, notice pay, holiday, and any tribunal award — with AI analysis of your specific situation.

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What could you actually be owed?

No sign-up, no card, no email. Your numbers just appear below as you type — then you decide whether to build the full case.

Start My Claim is not a law firm. Calculator uses 2026/27 statutory figures. All figures are estimates — seek professional advice for complex situations.