About Redundancy Pay UK
Redundancy Pay UK is a free calculator tool that estimates your statutory redundancy entitlement based on the formula set by the UK government. We built it because the gov.uk calculator, while accurate, doesn't explain the maths behind it or let you explore different scenarios.
How we calculate
Our calculator uses the exact same formula as gov.uk. It applies the age-weighted multipliers (0.5, 1, and 1.5 weeks per year of service), caps weekly pay at £751 for 2026/27, and limits service to 20 years. We then cross-reference with HMRC's guidance on the £30,000 tax-free threshold to show your after-tax position.
The rates update every April when the government publishes new weekly pay caps. We've tracked these changes since 2020:
| Tax year | Weekly cap | Maximum payout |
|---|---|---|
| 2026/27 | £751 | £22,530 |
| 2025/26 | £700 | £21,000 |
| 2024/25 | £643 | £19,290 |
| 2023/24 | £643 | £19,290 |
Our sources
All figures come directly from gov.uk statutory instruments and HMRC published guidance. We reference the Employment Rights Act 1996 (as amended), the annual Statutory Redundancy Pay uprating orders, and HMRC's Employment Income Manual for tax treatment of termination payments.
What this tool isn't
This isn't legal advice. We can't tell you whether your redundancy is genuine, whether you have a claim for unfair dismissal, or whether your settlement agreement is fair. For those questions, you need an employment solicitor or free advice from ACAS (0300 123 1100) or Citizens Advice.
Who runs this site
Redundancy Pay UK is operated by Quicksolve Digital Ltd, a company registered in England and Wales (Company No. 17385486). We build free financial calculator tools for UK consumers.
Contact
For corrections, data queries, or partnership enquiries: hello@redundancypay.uk