Redundancy Pay Calculator UK 2026/27
Calculate your statutory redundancy entitlement
Capped at £700/week for statutory purposes
Maximum 20 years counted
| Age at Each Year of Service | Weeks' Pay |
|---|---|
| Under 22 | 0.5 weeks |
| 22 to 40 | 1 week |
| 41 and over | 1.5 weeks |
Maximum 20 years of service counted. Weekly pay capped at £700 for 2026/27.
How is statutory redundancy pay calculated?
Statutory redundancy is based on your age, length of service (up to 20 years), and weekly pay (capped at £700). You get 0.5 week's pay for each full year under 22, 1 week's pay for each year aged 22-40, and 1.5 week's pay for each year aged 41+.
What is the maximum statutory redundancy pay?
The maximum is £21,000 for 2026/27 (20 years at 1.5 weeks × £700 cap). However, your employer may offer enhanced redundancy above the statutory minimum.
Is redundancy pay taxable?
The first £30,000 of redundancy pay is tax-free. This includes statutory redundancy and any ex-gratia payments. Amounts over £30,000 are taxed as income. Payments in lieu of notice (PILON) are taxable.
How many years' service do I need for redundancy pay?
You need at least 2 years' continuous service with your employer to qualify for statutory redundancy pay. Some employers offer enhanced redundancy from day one.
Does notice period affect redundancy pay?
No, statutory redundancy is calculated separately from notice pay. You're entitled to both your notice period (or pay in lieu) plus redundancy pay.