Redundancy pay calculator
Statutory redundancy pay from your age, service and weekly pay. The age bands and the weekly cap are what most people get wrong.
How this is calculated
Statutory redundancy pay is a number of weeks of pay, decided by how old you were during each year of service. Half a week for each year under 22, a full week from 22 to 40, and a week and a half from 41.
The calculation counts backwards from your most recent year, so someone who has been somewhere a long time accumulates the higher multiplier only for the years after they turned 41.
Weekly pay is capped at £751 for 2026/27. Earning more than that does not increase the statutory figure, which is why the maximum possible statutory payment is £22,530.
Only the most recent 20 years of service count, and you need at least two years of continuous service to qualify at all.
Rates used · 2026/27
| Weekly pay cap, Great Britain | £751 |
| Weekly pay cap, Northern Ireland | £783 |
| Under 22 | half a week per year |
| 22 to 40 | one week per year |
| 41 and over | one and a half weeks per year |
| Maximum years counted | 20 |
| Maximum, Great Britain | £22,530 |
| Maximum, Northern Ireland | £23,490 |
| Tax free up to | £30,000 |
Last checked July 2026. Source: HMRC and gov.uk.
Worked example
At 45 with 12 years of service, four of those years were spent aged 41 or over at one and a half weeks each, and eight were in the 22 to 40 band at one week each. That is 14 weeks. Weekly pay of £800 is capped at £751, so the statutory payment is £10,514, all of it tax free.
Common questions
Is redundancy pay taxed?
Termination payments are tax free up to £30,000, which covers most statutory payments. Anything above that is taxed as income. Pay in lieu of notice is taxed in full regardless.
Does my actual salary matter if it is above the cap?
Not for the statutory figure. Above the cap the excess is ignored, which is why higher earners depend on a contractual enhancement rather than the statutory minimum.
Is Northern Ireland different?
The formula is identical but the limits are set separately by the Department for the Economy and are currently higher: £783 a week rather than £751, giving a £23,490 maximum. Disputes also go to the Industrial Tribunal rather than the Employment Tribunal.
What if I have been there over 20 years?
Only the most recent 20 count. The earlier years are excluded from the statutory calculation entirely.
Do I get notice pay as well?
Yes, that is separate. Statutory notice is one week per year of service up to 12 weeks, and your contract may give more.