Finance calculators

Redundancy Calculator

Updated Jul 2, 2026 By Jehan Wadia
Statutory weekly pay cap (2026/27): £751  |  Maximum statutory payout: £22,530
Your Details
Enter your age in whole years on the date your redundancy takes effect.
Only full completed years count toward your entitlement.
Your weekly pay is the average you earned per week over the 12 weeks before the day you received your redundancy notice. Include regular overtime and commission.
Used to calculate your claim deadline. You have 6 months from this date to apply for statutory redundancy pay.
This is the date your notice was given — not your final working day. It is the reference point for calculating your 12-week average pay.

Your Redundancy Pay Estimate

Weeks of pay entitlement
0
Statutory redundancy pay
£0.00
Uncapped redundancy pay
£0.00
This figure uses your entered weekly pay with no statutory cap applied. It may represent a more generous contractual redundancy package.
Statutory weekly pay cap (2026/27): £751  |  Maximum statutory payout: £22,530
Step-by-Step Solution
Statutory vs Uncapped Comparison
Year-by-Year Breakdown
Weeks of pay accrued for each completed year of service, based on your age during that year.
Year of Service Age During That Year Multiplier Weeks Accrued
Total weeks entitlement 0

Introduction

If you are being made redundant in the UK, you have the right to know how much money you are owed. This free redundancy pay calculator works out your statutory redundancy pay in seconds. Just enter your age, years of service, and weekly pay. The tool does the rest.

Statutory redundancy pay is based on three things: how old you are, how long you have worked for your employer, and how much you earn per week. The government caps weekly pay at £751 for the 2026/27 tax year, and the maximum statutory payout is £22,530. You must have at least 2 full years of service to qualify.

This calculator shows both your statutory redundancy pay (with the legal cap applied) and your uncapped redundancy pay (using your actual weekly earnings). The uncapped figure helps you understand what a more generous employer or contract might offer. You also get a full year-by-year breakdown, step-by-step workings, and a chart that compares both amounts side by side.

Not sure what your weekly pay is? Use the built-in 12-week average pay calculator to work it out from your recent payslips. You can also enter the date your employment ended to see your claim deadline — you have 6 months from that date to apply.

How to Use Our Redundancy Pay Calculator

Enter a few details about your job below. The calculator will show you how much statutory redundancy pay you could get, plus an uncapped estimate and a full year-by-year breakdown.

Age at date of redundancy — Type your age in whole years on the day your redundancy takes effect. If you are unsure of your exact age on a future date, our age calculator can help. Your age decides how many weeks of pay you earn for each year of service.

Completed years of service — Enter the number of full years you have worked for your employer. You need at least 2 completed years to qualify for statutory redundancy pay. Only full years count, not partial ones. If you need to work out the time between your start date and your redundancy date, try our date duration calculator.

Gross weekly pay — Enter your average gross weekly pay in pounds before tax. This is based on what you earned per week over the 12 weeks before you got your redundancy notice. Include regular overtime and commission. If you know your annual salary but not your weekly figure, our salary to hourly calculator or weekly pay calculator can help you convert it.

Date employment ended (optional) — If you know the date your job ended, enter it here. The calculator will work out your 6-month deadline to claim statutory redundancy pay. You can also use our days until calculator to count down the remaining days before your deadline.

Date redundancy notice was received (optional) — Enter the date you were told you would be made redundant. This is the start date used to work out your 12-week pay period.

Weekly pay calculator — If you are not sure of your average weekly pay, click the drop-down tool. Type your gross pay for each of the last 12 weeks and the calculator will find the average for you. Press "Use this figure" to fill it in automatically. For a more general tool, see our average calculator.

What Is Redundancy Pay?

Redundancy pay is money your employer must give you if they let you go because your job no longer exists. In the UK, this is called statutory redundancy pay. It is your legal right if you have worked for your employer for at least 2 full years.

How Is Redundancy Pay Calculated?

Your redundancy pay depends on three things: your age, your years of service, and your weekly pay. The government uses age bands to decide how many weeks of pay you get for each year you worked:

  • Under 22: half a week's pay per year of service
  • Age 22 to 40: one week's pay per year of service
  • Age 41 and over: one and a half weeks' pay per year of service

Your weekly pay is based on the average you earned over the 12 weeks before you received your redundancy notice. This includes regular overtime and commission. If you only know your monthly or annual salary, use our salary calculator to find the weekly equivalent.

Statutory Caps for 2026/27

The government sets limits on how much statutory redundancy pay you can receive. For the 2026/27 tax year, the weekly pay cap is £751. Even if you earn more than this, the statutory calculation only uses £751 per week. The maximum number of years that count is 20, and the highest possible statutory payout is £22,530.

Is Redundancy Pay Taxed?

Statutory redundancy pay is tax-free. You do not pay income tax or National Insurance on it, as long as the total amount is under £30,000. If your employer gives you extra money on top of the statutory amount, the part above £30,000 may be taxed. Use our income tax calculator to estimate how much tax you might owe on any amount above the threshold. To understand your full take-home pay after redundancy, consider your remaining salary, any notice pay, and outstanding annual leave entitlements as well.

How Long Do You Have to Claim?

You have 6 months from the date your employment ended to claim statutory redundancy pay. If your employer refuses to pay, you can take your case to an employment tribunal. Do not wait — once the 6-month deadline passes, it becomes much harder to make a claim. Use our date calculator to work out exactly when your 6-month window expires.


Formulas used

Multiplier per year of service
m_i = \begin{cases} 0.5 & \text{if age} < 22 \\ 1.0 & \text{if } 22 \le \text{age} \le 40 \\ 1.5 & \text{if age} \ge 41 \end{cases}
Total weeks entitlement
W = \sum_{i=1}^{\min(S,\,20)} m_i
Capped weekly pay
P_{\text{cap}} = \min(P,\; 751)
Statutory redundancy pay
R_{\text{stat}} = \min\!\left(P_{\text{cap}} \times W,\; 22{,}530\right)
Uncapped redundancy pay
R_{\text{uncap}} = P \times W
Average weekly pay (12-week calculator)
\bar{P} = \frac{\sum_{k=1}^{n} P_k}{n}

Frequently asked questions

Who qualifies for statutory redundancy pay in the UK?

You qualify if you are an employee who has worked for your employer for at least 2 full years without a break. Agency workers, freelancers, and self-employed people do not qualify. You must also have been dismissed because of a genuine redundancy — meaning your job no longer exists.

What counts as a completed year of service?

A completed year of service is a full 12-month period you worked for your employer. Partial years do not count. For example, if you worked for 4 years and 11 months, only 4 years are used in the calculation.

What does gross weekly pay mean?

Gross weekly pay is the amount you earn each week before tax and National Insurance are taken off. It includes your basic pay plus any regular overtime and commission you received during the 12 weeks before your redundancy notice.

Why does the calculator show two different pay amounts?

The statutory amount uses the government's weekly pay cap of £751. The uncapped amount uses your actual weekly pay with no cap. Some employers offer redundancy packages based on your real pay, so the uncapped figure helps you see what that would be worth.

What happens if I have more than 20 years of service?

Statutory redundancy pay only counts a maximum of 20 years of service. If you have worked for your employer for longer than 20 years, the calculator will use 20 years. Any extra years do not add to your statutory payout.

Why does my age affect how much redundancy pay I get?

The government gives more weeks of pay to older workers. If you were under 22 during a year of service, you get half a week. If you were 22 to 40, you get one week. If you were 41 or older, you get one and a half weeks. This means older workers with the same length of service receive more.

Which 12 weeks are used to work out my weekly pay?

Your weekly pay is based on the 12 weeks ending on the day you received your redundancy notice — not your last day at work. If you were not paid in a particular week (for example, you were on unpaid leave), that week is skipped and an earlier week is used instead.

Do I include bonuses in my weekly pay?

You should include regular overtime and commission. One-off bonuses or irregular payments are usually not included. If a bonus is part of your normal pay pattern and appears in your contract, it may count. Check with your employer or ACAS if you are unsure.

Can I get redundancy pay if I am on a fixed-term contract?

Yes. If your fixed-term contract ends and is not renewed because the work has gone, that counts as a redundancy. You still need at least 2 full years of service to qualify for statutory redundancy pay.

What if my employer refuses to pay my redundancy?

First, write to your employer and ask for the payment in writing. If they still refuse, you can contact ACAS for free advice. If that does not work, you can make a claim to an employment tribunal. You must do this within 6 months of your employment ending.

Does notice pay come on top of redundancy pay?

Yes. Notice pay and redundancy pay are separate. Your employer must give you your contractual or statutory notice period (or pay in lieu of notice) in addition to any redundancy pay you are owed.

Can my employer offer more than the statutory amount?

Yes. Many employers offer enhanced redundancy packages that are more generous than the statutory minimum. These may use your real weekly pay without the £751 cap, or offer more weeks per year of service. The uncapped figure in this calculator gives you a starting point for comparison.

What if I started working before I turned 16?

Only service from age 16 onwards counts toward statutory redundancy pay. Any time you worked before you turned 16 is not included in the calculation.

Do part-time workers get redundancy pay?

Yes. Part-time workers have the same rights to statutory redundancy pay as full-time workers. Your weekly pay is based on what you actually earned, so it will reflect your part-time hours.

What is the 12-week average pay tool in this calculator?

It is a built-in helper that works out your average weekly pay for you. Click the drop-down, enter your gross pay from each of your last 12 weekly payslips, and it calculates the average. Press "Use this figure" to fill in the weekly pay field automatically.

How accurate is this redundancy calculator?

This calculator uses the official UK statutory redundancy pay formula and the 2026/27 weekly pay cap of £751. It gives you a reliable estimate. However, your exact entitlement may depend on your contract, so check with your employer or a legal adviser if you need confirmation.