Statutory Redundancy Pay Calculator (2026/27)
Enter your age, years of service and weekly pay to calculate your statutory redundancy entitlement. Rates are for redundancies on or after 6 April 2026 in England, Wales and Scotland, using the official gov.uk method. The figure shown is the legal minimum your employer must pay — your contract may entitle you to more.
How it works
For each full year of service, you get: half a week’s pay for years worked under age 22, one week’s pay for years aged 22 to 40, and one and a half week’s pay for years aged 41 or over. Years are counted backwards from your redundancy date, and only the last 20 years count.
A worked example: a 50-year-old with 12 full years of service and weekly pay of £600. Counting back from the redundancy date, 9 of those years were worked at age 41 or over (9 × 1.5 = 13.5 weeks) and the earlier 3 years at ages 38 to 40 (3 × 1 = 3 weeks). That is 16.5 weeks × £600 = £9,900 statutory redundancy pay.
Weekly pay is capped at £751 (2026/27), so the maximum possible statutory payment is £22,530 (20 years × 1.5 weeks × £751). If your actual weekly pay is below the cap, your real figure is used. Someone earning £900 a week is treated as earning £751 — with 10 qualifying years all aged 41 or over, that is 15 weeks × £751 = £11,265, not 15 × £900.
You qualify for statutory redundancy pay after two full years with your employer. Your contract may provide enhanced redundancy pay above the statutory minimum — this calculator shows the legal floor, and redundancy pay up to £30,000 is tax-free.
Who is not covered: the self-employed have no statutory entitlement, and neither do employees with less than two full years of continuous service. Employees dismissed for gross misconduct, or who unreasonably refuse suitable alternative employment, can also lose the entitlement even after two years.
Two common mistakes: applying your current age rate to every year of service (the age bands follow the age you actually were during each year, counted backwards), and counting partial years — only full years of service enter the calculation, so 7 years and 10 months counts as 7 years.
The result covers statutory redundancy pay only. Notice pay and accrued holiday pay are separate entitlements paid on top and, unlike redundancy pay, are taxed as normal income. Any contractual enhancement your employer offers is also additional to the figure shown here.
FAQ
What is the maximum statutory redundancy pay in 2026/27?
The weekly pay cap is £751 for redundancies on or after 6 April 2026, and only 20 years of service count. That makes the maximum statutory payment £22,530 — reached by someone with 20 qualifying years all aged 41 or over and weekly pay at or above the cap.
Do I qualify for statutory redundancy pay?
You qualify if you are an employee (not self-employed) and have worked for your employer continuously for at least 2 full years. Employees dismissed for gross misconduct, or who unreasonably refuse suitable alternative employment, can lose the entitlement.
Is redundancy pay taxed?
Statutory redundancy pay is tax-free, and the first £30,000 of any combined redundancy package (statutory plus contractual enhancement) is also free of income tax and National Insurance. Amounts above £30,000 are taxed as income. Notice pay and holiday pay, however, are taxed normally.
How are the age bands applied if I crossed a birthday during service?
Service is counted backwards from the redundancy date, year by year. Each full year is assigned the rate for your age during that year — so a 45-year-old with 10 years of service gets 1.5 weeks for the 4 most recent years (aged 41+) and 1 week for the earlier 6 years.
What if I earn more than £751 a week?
The statutory calculation still uses £751 — the 2026/27 cap applies however much you actually earn. A 15-week entitlement is therefore worth at most 15 × £751 = £11,265 regardless of salary. Higher earners often have contractual redundancy terms that use real pay; this calculator shows only the legal minimum.
Do partial years of service count?
No — only complete years enter the statutory formula. Someone with 7 years and 10 months of continuous service is treated as having 7 full years. The years are counted backwards from the redundancy date, which also determines which age band each year falls into.
Does this calculator work for Northern Ireland?
No — the rates here apply to redundancies in England, Wales and Scotland on or after 6 April 2026. Northern Ireland is outside the scope of this calculator, so if your employment is there you should check the figures that apply to it rather than relying on the result shown.
My employer is offering more than the calculator shows — is that normal?
Yes. This tool calculates the statutory minimum, the legal floor every qualifying employee must receive. Many contracts provide enhanced redundancy pay above it, and the first £30,000 of the combined package remains free of income tax and National Insurance, so an enhanced offer is usually genuinely better rather than a substitute.