UK Redundancy Pay Calculator

Understanding UK Statutory Redundancy Pay

If you have been told you are being made redundant, the first practical question most people ask is: how much will I get? The answer depends on a formula set by the UK government — and it is not always intuitive. This page explains exactly how redundancy pay is calculated, who qualifies, what affects the amount, and what you should do next.

How to Use This Calculator

Enter your age at the point of redundancy, the number of complete years you have worked continuously for your employer, and your monthly gross pay before tax. The calculator applies the official statutory formula and shows your entitlement immediately. No data is stored or shared.

If your monthly pay converts to more than £643 per week, the calculator automatically applies the legal cap. This is a government-set limit that applies to everyone, regardless of actual salary.

How Statutory Redundancy Pay Is Calculated

The UK government formula assigns a number of weeks' pay for each year of service, with the number of weeks depending on how old you were during each year you worked:

Service is counted backwards from the date of redundancy, up to a maximum of 20 years. Weekly pay is capped at £643 for the 2025/26 tax year. This means the absolute maximum statutory payment — 20 years of service, all at age 41 or over — is £19,290.

Example: A 45-year-old with 10 years' service earning £3,000 per month (£692 per week, capped to £643). Their 10 years of service all fall in the 41-plus band, giving 15 qualifying weeks (10 times 1.5). Total: 15 times £643 equals £9,645.

Who Qualifies for Statutory Redundancy Pay?

To receive statutory redundancy pay, you must meet all of the following conditions:

• You are an employee, not self-employed or a worker on a contract for services
• You have worked continuously for at least 2 years for your employer
• You have been genuinely made redundant — your job has disappeared, not just been changed
• You have not unreasonably refused suitable alternative employment offered by your employer

Agency workers, contractors, and the self-employed are not entitled to statutory redundancy pay, though they may have other rights. Zero-hours contract workers who are legally classed as employees may qualify after two years' continuous service.

What Happens Next After Redundancy?

Frequently Asked Questions

Is statutory redundancy pay taxable?

Statutory redundancy pay is tax-free up to £30,000. This limit applies to your total redundancy package, including any enhanced payments from your employer. Anything above £30,000 is subject to income tax at your normal rate. National Insurance is not charged on redundancy pay regardless of the amount.

Can my employer pay more than the statutory minimum?

Yes. Many employers — particularly larger organisations or those with trade union agreements — offer enhanced redundancy pay above the legal minimum. Check your employment contract, staff handbook, or ask your HR department. This calculator shows the statutory minimum only.

What if I have worked for less than 2 years?

You are not entitled to statutory redundancy pay if you have worked for your employer for fewer than two continuous years. However, you are still entitled to receive notice pay and any accrued holiday pay. Your employer may choose to make a discretionary payment.

What is the maximum redundancy pay I can receive?

The maximum statutory redundancy pay for 2025/26 is £19,290. This is calculated as 20 qualifying weeks multiplied by the weekly pay cap of £643. Service beyond 20 years is not counted, and weekly pay above £643 is capped at that figure.

What happens if my employer goes bust?

If your employer becomes insolvent and cannot pay you, you can claim your statutory redundancy pay directly from the government through the Redundancy Payments Service. Apply via the Insolvency Service at gov.uk. The same applies to unpaid notice pay, holiday pay, and certain other wage arrears.

Am I entitled to redundancy pay if I am on maternity or paternity leave?

Yes. Being made redundant while on maternity leave, paternity leave, or shared parental leave does not affect your entitlement to statutory redundancy pay. If you are on maternity leave and your role is made redundant, your employer must also offer you any suitable alternative vacancy before offering it to other at-risk employees.

Do zero-hours contract workers get redundancy pay?

It depends on your employment status. If you are on a zero-hours contract but legally classed as an employee, you may qualify for redundancy pay after two years' continuous service. If your contract classes you as a worker rather than an employee, you generally do not qualify. ACAS can provide free guidance on your specific situation.

What is the difference between redundancy pay and notice pay?

Redundancy pay is a lump sum compensation for losing your job. Notice pay is the salary you receive during your notice period — either the minimum set by law (one week per year of service, up to 12 weeks) or your contractual notice period, whichever is longer. Both are separate entitlements and you should receive both if you are made redundant after two or more years of service.

Can I be made redundant and then rehired into the same role?

This can happen, but there are legal risks for employers if it appears the redundancy was not genuine. If you are rehired for the same or a substantially similar role shortly after redundancy, this may indicate the dismissal was unfair. Citizens Advice or an employment solicitor can advise on whether you have grounds for an unfair dismissal claim.

Where can I get free redundancy advice?

ACAS (acas.org.uk) is the primary advisory body and operates a free helpline on 0300 123 1100. Citizens Advice (citizensadvice.org.uk) provides guidance both online and in person. The government's own redundancy checker is available at gov.uk. If you believe your redundancy was unfair, many employment law solicitors offer a free initial consultation.

Last updated: May 2026 · Based on 2025/26 HMRC statutory rates