Redundancy Pay Calculator

Free Redundancy Pay Calculator: calculate redundancy pay instantly with transparent formula, worked examples and tips. No signup.

UK Statutory Redundancy Pay is an entitlement estimate based on age, full years of continuous service, and average weekly pay. This page is designed for checking the statutory floor before considering a contractual redundancy package. It is not the US federal-tax breakdown used by a generic salary calculator. the Statutory Pay Calculator and the illustrative Severance Pay Calculator cover adjacent questions, but their inputs and formulas are different.

The selected figures are tied to the UK 2026–27 tax year where a statutory rate applies. Rates can change each April, and eligibility conditions can be as important as the arithmetic. Use the official source below for the current rules, then compare the calculator’s gross planning estimate with the employer, insurer, or benefits authority that will make the actual decision.

Keep a copy of the assumptions beside the result. Earnings definitions, qualifying dates, service records, policy wording, payroll deductions, and benefit offsets can change the amount even when the headline salary stays the same.

Enter the input that the relevant rule actually uses: average weekly earnings for statutory pay, age and full service years for redundancy, or insured income and policy percentages for disability income.
Choose a realistic period. A statutory maximum is not a requirement to claim every available week, and an insurance duration is not a promise that a claim will be accepted.
Read the primary result before interpreting the supporting rows. The highlighted amount is a gross estimate under the selected assumptions.
Change one input at a time to see whether the result is driven by pay, age, service, rate, or timing.
Check the official source and the relevant contract, policy, or eligibility guidance before relying on the estimate.
Use a net-pay or household-budget tool separately if you need to plan spending after tax and deductions.
Save the date and tax-year assumptions because statutory rates and caps can change.

UK Statutory Redundancy Pay formula and current assumptions

Each full year counts as 0.5 week under age 22, 1 week from age 22 to 40, or 1.5 weeks from age 41; service is capped at 20 years and weekly pay is capped at £751 for redundancies on or after 6 April 2026.

The calculator intentionally keeps the primary formula visible rather than hiding it inside a generic salary breakdown. That makes the result auditable: you can see which earnings base, rate, cap, age band, waiting period, or weeks limit produced the number.

For statutory payments, “lower of” means the employee’s percentage-based amount is compared with the statutory weekly ceiling. For redundancy, the age-band weeks are calculated from full years and then multiplied by weekly pay after the statutory cap. For disability income, the percentage and waiting-period calculation is only a planning model; the policy wording controls the claim.

These estimates are gross or pre-policy figures. Tax, National Insurance, payroll rounding, contractual top-ups, insurance premiums, offsets, and eligibility tests are not silently folded into the result.

Understanding the UK Statutory Redundancy Pay result

What the estimate does and does not decide

The highlighted result answers the title-specific question: a UK statutory maternity total, a selected statutory-pay rate, statutory redundancy pay, or a private income-replacement scenario. It should not be compared with a different kind of payment without aligning the period and definition of earnings.

Read supporting rows as an audit trail. A weekly amount, entitlement weeks, waiting period, or capped weekly pay explains why the headline result moved. If the result looks surprising, test the capped and uncapped assumptions separately rather than changing several fields at once.

Where the page concerns a legal or insurance entitlement, the final decision belongs to the employer, insurer, payroll team, or relevant authority. Keep the source link and the date of the estimate with any important financial record.

Finance tips and best practices

Enter the age at redundancy, not the age when employment started.
Count full years of continuous service and do not exceed the 20-year statutory cap.
Use average weekly pay from the relevant 12-week period before notice.
Compare the capped statutory result with the employer’s written redundancy policy.
Keep Northern Ireland cases separate because the GOV.UK guidance notes that rules may differ.
Ask an adviser about eligibility exceptions, settlement agreements, and tax treatment where the amount matters.

A worker aged 45 with 12 full years of service has 14.5 entitlement weeks before applying the weekly-pay cap.
At a weekly pay of £900, the statutory calculation uses £751 rather than £900.
The £751 cap and £22,530 maximum apply to redundancies on or after 6 April 2026; earlier dismissals use the earlier figures.
At least 2 full years of continuous service is normally required for statutory redundancy pay.
The result is statutory redundancy pay only; notice pay, holiday pay, enhanced packages, and settlement terms are separate.

Common mistakes to avoid

Applying 1.5 weeks to every year regardless of age.
Using the employee’s full weekly salary above the statutory cap.
Counting partial years as full years.
Assuming statutory redundancy pay includes notice pay.
Using the current cap for a redundancy that happened before 6 April 2026.
Treating the estimate as a legal determination of entitlement.

Source checked for the current 2026–27 figures: GOV.UK Statutory redundancy pay. This calculator is educational and does not decide entitlement, eligibility, tax, insurance cover, or legal rights. Rules differ by jurisdiction and circumstances; confirm consequential decisions with the employer, insurer, HMRC, GOV.UK, or a qualified adviser.