Redundancy pay calculator 2026/27
- Statutory formula with age weighting
- Weekly pay cap £751 (April 2026)
- Tax-free up to £30,000
- Shows your weeks due and age bands
- No sign-up required
Statutory redundancy pay calculator
Enter your age, length of service and weekly gross pay to see your statutory redundancy entitlement for 2026/27.
| Years aged under 22 (0.5 week each) | 0 |
| Years aged 22 to 40 (1 week each) | 8 |
| Years aged 41 and over (1.5 weeks each) | 4 |
| Total statutory redundancy | £8,400 |
Figures show the statutory minimum for 2026/27. Employers may pay more, and this is general information, not legal advice. Source: gov.uk/redundancy-your-rights.
How statutory redundancy pay works
If you've been employed for two or more years and you're being made redundant, your employer must pay you statutory redundancy. The amount rests on three things: your age, your length of service, and your weekly pay, which is capped at £751 from April 2026.
The formula gives you a set number of weeks' pay for each complete year of service:
- 0.5 week's pay for each year you were under 22
- 1 week's pay for each year you were aged 22 to 40
- 1.5 weeks' pay for each year you were 41 or older
Only your last 20 years of service count, even if you've been there longer. And the weekly pay cap is £751 for 2026/27, up from £719 the year before. So the highest statutory payout anyone can get is £22,530, which is 20 years at 1.5 weeks a year at the £751 cap.
Worked example: age 45, 12 years' service, £600 a week
Say you're 45, you've worked somewhere for 12 years, and your weekly gross pay is £600. Because £600 sits below the £751 cap, the calculator uses your actual pay. Your 12 years split across two age bands:
| Age band | Years | Rate | Subtotal |
|---|---|---|---|
| Aged 22 to 40 | 8 years | 1 week × £600 | £4,800 |
| Aged 41 and over | 4 years | 1.5 weeks × £600 | £3,600 |
That's 14 weeks in total, which comes to £8,400. It's paid tax-free because it sits under the £30,000 threshold.
The £30,000 tax-free threshold
Statutory redundancy pay is always tax-free. If your employer offers an enhanced package above the statutory minimum, the first £30,000 of the total, statutory included, stays free of Income Tax and National Insurance. Anything above £30,000 is taxed at your normal rate.
So a £45,000 redundancy package means tax on £15,000 of it. At the basic 20% rate that's £3,000. A higher-rate taxpayer pays 40% on the excess, which would be £6,000 on the same £15,000. Our guide on how redundancy pay is taxed walks through the detail.
Who qualifies
You need at least two years' continuous service with the same employer, and you must be an employee rather than a contractor or agency worker. The redundancy has to be genuine, meaning the role itself is disappearing. Part-time workers get exactly the same rights as full-timers, and fixed-term staff qualify too if a contract ends because of redundancy.
Notice pay is separate from redundancy pay, and it's taxed differently. For how the two fit together, read our guide on notice periods and redundancy. For the full method with examples at every age, see how redundancy pay is calculated.