UK Statutory Redundancy Pay Calculator
Redundancy Pay Calculator (UK)
Work out your statutory redundancy pay under the Employment Rights Act 1996 — age-banded weeks of pay, capped weekly rate, 20-year ceiling. Uses the 2026/27 rates (£751/week in England, Scotland & Wales; £783/week in Northern Ireland).
Calculate your statutory redundancy pay
- Weeks of pay
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- Band split
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- Weekly pay used
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- Cap applied
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- Years counted
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- Tax note
- Tax-free within HMRC's £30,000 termination-payments threshold
Year-by-year breakdown (counted backwards from your redundancy date)
| Year | Age at year end | Band | Weeks |
|---|
What this calculator does — and does not — cover
UK statutory redundancy pay only. This tool applies the Employment Rights Act 1996 formula: age-banded multipliers (0.5 / 1 / 1.5 weeks per year), the statutory weekly-pay cap, and the 20-year service ceiling.
Not US severance pay. US severance is a different calculation entirely — it comes from employer policy or a negotiated agreement (often 1–2 weeks per year, no statutory cap) and is taxed as ordinary wages. If you need the American figure, use our US Severance Pay Calculator instead. The two numbers are not interchangeable.
How the calculation works
- Count complete years backwards from the redundancy date (max 20). Part-years are ignored.
- Band each year by age at the end of that year: 1.5 weeks if 41+, 1 week if 22–40, 0.5 week if under 22.
- Cap the weekly pay at the statutory limit for your region and redundancy date.
- Multiply: total weeks × capped weekly pay.
Statutory weekly-pay caps (verified)
| Period | England, Scotland & Wales | Northern Ireland | Max payment (GB) |
|---|---|---|---|
| On/after 6 Apr 2026 | £751 | £783 | £22,530 |
| 6 Apr 2025 – 5 Apr 2026 | £719 | £749 | £21,570 |
Sources: GOV.UK “Redundancy: your rights”; Employment Rights (Increase of Limits) Orders 2026 (GB & NI); Employment Rights Act 1996 s.162. Rates uprated each April.
Worked examples (independently recomputed)
- Age 35, 10 years, £600/week (GB, 2026/27): all 10 years in the 22–40 band → 10 × 1.0 = 10 weeks × £600 = £6,000.
- Age 50, 22 years, £900/week (GB, 2026/27): 20 years counted; 10 at 1.5 (15 weeks) + 10 at 1.0 (10 weeks) = 25 weeks; pay capped at £751 → 25 × £751 = £18,775.
- Age 20, 5 years, £400/week (NI, 2026/27): all 5 years under 22 → 5 × 0.5 = 2.5 weeks × £400 = £1,000.
Frequently asked questions
How is statutory redundancy pay calculated in the UK?
Under the Employment Rights Act 1996 (section 162), complete years of service are counted backwards from your redundancy date, up to 20 years. Each year earns 0.5 week's pay if you were under 22 at the end of that year, 1 week's pay if you were 22 to 40, or 1.5 weeks' pay if you were 41 or older. Weekly pay is capped (see below). Example: made redundant at 45 with 12 years' service and £700/week gross pay — 5 years at 1.5 (7.5 weeks) plus 7 years at 1.0 (7 weeks) = 14.5 weeks × £700 = £10,150.
What is the weekly pay cap for statutory redundancy pay in 2026?
For redundancies on or after 6 April 2026, a week's pay is capped at £751 in England, Scotland and Wales, and £783 in Northern Ireland (Employment Rights (Increase of Limits) Orders 2026). The maximum statutory payment is therefore 30 weeks × £751 = £22,530 in Great Britain, and 30 × £783 = £23,490 in Northern Ireland. For redundancies between 6 April 2025 and 5 April 2026 the caps were £719 (GB) and £749 (NI). Earnings above the cap are invisible to the calculation.
How many years of service count towards redundancy pay?
A maximum of 20 complete years count, and they are the 20 most recent years — counted backwards from your redundancy date. Service before that is ignored. You also need at least 2 years' continuous service with the same employer to qualify at all. With 1 year and 11 months of service, for example, there is no statutory entitlement, even though the formula would otherwise give a figure.
Which year's rates apply to my redundancy?
The cap in force on your redundancy date applies — the date your employment actually ends, for redundancies on or after 6 April 2026 that is £751 a week in England, Scotland and Wales (£783 in Northern Ireland). Redundancies between 6 April 2025 and 5 April 2026 use the older £719/£749 caps. The limits are uprated every April, so always check the current figure on GOV.UK if your redundancy date is near a year boundary.
Is statutory redundancy pay taxed in the UK?
Genuine statutory redundancy pay is tax-free within HMRC's £30,000 tax-free threshold for termination payments — the statutory amount counts towards that £30,000, it is not on top of it. Amounts above £30,000 are taxed. Separately, notice pay (including pay in lieu of notice), outstanding wages and accrued holiday pay are taxed as normal earnings and do not share the exemption. These are estimates only, not tax advice — check your employer's breakdown and HMRC guidance.
How is 'a week's pay' worked out for redundancy?
GOV.UK defines it as your average gross weekly earnings over the 12 weeks before the day you were given your redundancy notice — not your final week alone. It includes guaranteed contractual overtime, contractual bonuses and commission you were entitled to. Example: £7,200 total gross over those 12 weeks = £600 a week for the calculation. If your pay varied, gather all 12 weeks of payslips before calculating.
What happens if my birthday falls during a year of service?
Each year of service is banded by your age at the end of that year, counting backwards from your redundancy date (Employment Rights Act 1996, section 162). So a birthday that falls inside a year moves that whole year into the higher band. Example: made redundant on your 41st birthday with 3 years' service — the most recent year ends at 41 (1.5 weeks), the two before end at 40 and 39 (1 week each) = 3.5 weeks total; at the £751 cap that is £2,628.50.
Is statutory redundancy pay the same as severance pay?
No — they are different systems. UK statutory redundancy pay is a legal minimum set by Parliament (Employment Rights Act 1996): fixed age bands, a capped weekly rate and a 20-year ceiling. US severance pay is generally not required by federal law at all; it comes from the employer's policy or a negotiated agreement, often 1–2 weeks per year with no statutory cap, and is taxed as ordinary wages. For the US calculation, use our US Severance Pay Calculator instead.
Can my employer pay more than the statutory minimum?
Yes — employers can offer enhanced or contractual redundancy terms, and many do (for example 2 or 3 weeks' pay per year of service, sometimes uncapped). They cannot pay less than the statutory amount. Example: at 40 with 10 years' service and £600/week, the statutory floor is 10 weeks × £600 = £6,000, but a 2-weeks-per-year company scheme would pay £12,000. Always check your contract and any collective agreement first.
Does Northern Ireland use the same redundancy rates?
The formula is the same, but the weekly cap is set by a separate Northern Ireland Order and is higher: £783 a week from 6 April 2026 (previously £749), giving a maximum statutory payment of £23,490. Example: made redundant at 50 in Belfast with 10 years' service and £900/week — 10 years at 1.5 = 15 weeks × £783 = £11,745. The same 2-year qualifying rule and 20-year ceiling apply.