Redundancy Pay Calculator
Work out your statutory redundancy pay based on your age, length of service and weekly pay — plus how much of it is tax-free above the £30,000 threshold.
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How to use this calculator
Enter your date of birth, when you started this job, your redundancy (leaving) date, and your gross weekly pay.
Enter your dates
Your date of birth, employment start date and redundancy date — statutory pay depends on your age during each year you worked.
Enter your weekly pay
Your average gross pay per week over the 12 weeks before you got your redundancy notice. There’s a legal cap on the figure used, currently £751/week.
Check the tax-free amount
Add any extra/enhanced redundancy payment from your employer to see whether your combined total goes over the £30,000 tax-free threshold.
How it’s worked out
The age-band formula
Statutory redundancy pay isn’t just “weeks × years” — the multiplier depends on how old you were during each year you worked, not just your age now. For each complete year of service (most recent years first, capped at 20 years total), you get:
Under 22
Half a week’s pay for each full year you were under 22.
22 to 40
One week’s pay for each full year you were 22 or older, but under 41.
41 and over
One and a half week’s pay for each full year you were 41 or older.
If you’ve worked somewhere for more than 20 years, only the most recent 20 count — which works in your favour, since those are the years you were oldest (and so on the higher multiplier). Your weekly pay is also capped: even if you earn more, the calculation only uses up to £751 a week for redundancies from 6 April 2026 onwards. Combine the maximum multiplier (1.5), the 20-year cap and the £751 weekly cap and you get the statutory maximum: £22,530.
Eligibility
Who qualifies
You only qualify for statutory redundancy pay if you’ve worked for your employer for at least 2 years continuously. A small number of roles are excluded from statutory redundancy pay altogether, including Crown servants, armed forces and police, share fishermen and dock workers paid by a share of the catch/profits, apprentices who aren’t kept on after training, and domestic servants who are a member of the employer’s immediate family.
Tax and National Insurance
What you actually keep
The first combined £30,000 of statutory redundancy pay, any additional/enhanced contractual redundancy payment, and most non-cash benefits is tax-free — this is a single pooled allowance, not £30,000 per category. Statutory redundancy pay on its own is rarely large enough to use up the whole allowance.
Anything above £30,000 is added to your income and taxed at your normal marginal Income Tax rate through PAYE — use our Income Tax Calculator to estimate the rate that applies to you. Your employer separately pays Class 1A National Insurance (15% for 2026/27) on the amount above £30,000 — this comes out of the employer’s pocket, not yours. Crucially, you personally never pay employee National Insurance on a redundancy or termination payment, at any amount.
Notice pay (or pay in lieu of notice) is separate from redundancy pay and is taxed as normal earnings, with both employee and employer National Insurance applying — it isn’t covered by the £30,000 redundancy exemption.
Questions
Common questions
Is redundancy pay taxable?
The first combined £30,000 of statutory and enhanced redundancy pay (plus most non-cash benefits from the termination) is tax-free. Anything above that is taxed as income at your normal rate, and your employer pays Class 1A National Insurance on the excess — but you never pay employee National Insurance on it.
What if I’ve worked at the company for more than 20 years?
Only the most recent 20 years of service count towards statutory redundancy pay. This is actually to your advantage, since your most recent years are also the ones where you were oldest — and older age bands get a higher weekly multiplier.
Does my employer have to pay more than the statutory minimum?
No — statutory redundancy pay is a legal minimum, not a maximum. Many employers offer enhanced or contractual redundancy schemes that pay more than the statutory formula. This calculator works out the statutory minimum only; check your contract or staff handbook for any enhanced scheme your employer offers.
Is notice pay included in this figure?
No. Notice pay (or pay in lieu of notice) is a separate legal entitlement on top of redundancy pay, and it’s taxed as normal earnings rather than falling under the £30,000 redundancy exemption.
What counts as my “weekly pay” for this calculation?
It’s your average gross pay per week over the 12 weeks before you were given your redundancy notice — not necessarily your usual contracted hours if your pay varies. There’s a legal cap on the figure used in the statutory formula (£751/week for redundancies from 6 April 2026), even if you earn more than that.
Where these figures come from. Statutory redundancy pay rates, the 2026/27 weekly pay cap (£751) and the £22,530 statutory maximum are taken from gov.uk. Tax and National Insurance treatment, including the £30,000 threshold and the employer Class 1A NIC rate, are taken from gov.uk. All figures were checked on 23 September 2026. This tool calculates the statutory minimum only, using whole years of service — for a legally binding figure, use the government’s own redundancy pay calculator or check with your employer or Acas.
Redundancy pay (gov.uk) · Tax and National Insurance on termination payments (gov.uk) · Income Tax Calculator
How we calculate · Editorial policy. This is general information, not legal advice.