Redundancy Pay Calculator UK

How statutory redundancy pay works

If you are made redundant, you have the right to statutory redundancy pay provided you have worked for your employer for at least two continuous years and meet the other qualifying conditions. The amount depends on your age, how long you have worked there, and your weekly pay.

How the calculation works

You get a set number of weeks' pay for each complete year of service, weighted by your age:

• 0.5 week’s pay for each complete year when you were aged 18–21
• 1 week’s pay for each complete year when you were aged 22–40
• 1.5 weeks’ pay for each complete year when you were aged 41 or older

The caps that apply

• A maximum of 20 years of service can count towards your payment.
• Your weekly pay is capped. From 6 April 2024 the cap is £643 a week.
• The total statutory redundancy pay you can receive is capped at £19,290.

Any part of a year of service is ignored for redundancy pay, and weekly pay is based on your gross earnings (before tax). If your contract offers a better deal, your employer is expected to pay the enhanced amount instead.

Tax on redundancy pay

Statutory redundancy pay is usually covered by the £30,000 tax-free allowance on termination payments, so most people do not pay tax on it. Anything above £30,000, plus any payments for unused holiday or benefits, may be taxable. You can check the current rules on GOV.UK — redundancy: your rights.