Being made redundant? Also worth checking your UK take-home pay calculator once you're back in work.
Gross pay before tax. The statutory cap for 2026/27 is £751/week — higher earnings are limited to this figure.
This calculator gives the statutory minimum based on the Employment Rights Act 1996 and 2026/27 rates (effective 6 April 2026). Your employer may offer enhanced terms above this amount. Figures are for guidance — confirm your entitlement with your employer or ACAS.
Statutory redundancy pay is calculated using a formula based on your age, length of continuous service, and weekly pay — capped by statute. It is the legal minimum; your contract may entitle you to more.
Weekly pay for statutory redundancy purposes is capped at £643 (2024/25 rate, reviewed each April). If you earn more than this, the calculation still uses £643 as the weekly pay figure. The maximum statutory payment is currently £19,290 (30 weeks × £643). The cap is adjusted annually in line with the Retail Price Index.
Each complete year of service counts for a different number of weeks depending on your age during that year: half a week's pay for each year worked under age 22; one week's pay for each year worked aged 22–40; one and a half weeks' pay for each year worked aged 41 or over. Only the last 20 years of service count — earlier years are ignored regardless of how long you've worked there.
To qualify, you must be an employee (not self-employed or a worker), have at least two years of continuous service with the same employer, and have been made redundant — not dismissed for misconduct or resigned. Zero-hours contracts can qualify if the working relationship is continuous. Agency workers and contractors generally do not qualify.
Statutory redundancy pay is tax-free up to £30,000. Payments above £30,000 — typically from enhanced contractual redundancy schemes — are subject to income tax (but not National Insurance) on the excess. Notice pay and holiday pay paid on termination are fully taxable as normal earnings.
Many employers offer enhanced redundancy terms above the statutory minimum — for example, using actual weekly pay rather than the capped figure, or applying a higher multiplier per year of service. Enhanced terms are usually set out in your employment contract or a collective agreement. This calculator shows the statutory minimum only; check your contract for any enhanced entitlement.
If you believe you're entitled to statutory redundancy pay and your employer has refused or become insolvent, you can apply to the Redundancy Payments Service (part of the Insolvency Service) to claim directly from the National Insurance Fund. Claims must normally be made within six months of the dismissal date.