📋 Redundancy Pay Calculator

Statutory redundancy entitlement from age, service and weekly pay — 2026/27 rates

yrs
yrs
Capped at 20 years
£
Capped at £751/week for statutory calc (2026/27)

Statutory Redundancy Entitlement

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statutory redundancy pay (tax-free)
Weeks of Pay Due—
Weekly Pay Used (capped)—
Statutory redundancy is tax-free up to £30,000. You need 2+ years' service to qualify. Your employer may offer enhanced redundancy above the statutory minimum — check your contract.

How Statutory Redundancy is Calculated

You receive: 0.5 week's pay per full year of service under age 22, 1 week's pay per year aged 22–40, and 1.5 weeks' pay per year aged 41+. Service is capped at 20 years and weekly pay is capped at £751 (2026/27), making the maximum statutory payout £22,530.

Eligibility

You must be an employee with at least 2 years' continuous service, dismissed by reason of redundancy. You're not entitled to statutory redundancy if your employer offers suitable alternative employment and you unreasonably refuse it.

Tax on Redundancy

The first £30,000 of redundancy pay (statutory + enhanced combined) is tax-free. Amounts above £30,000 are taxed as income. Payment in lieu of notice (PILON) and holiday pay are fully taxable as normal earnings.

Your Other Rights

You're also entitled to a statutory notice period (1 week per year of service, up to 12 weeks), paid time off to look for work, and consultation. ACAS offers free advice on 0300 123 1100.