How is statutory redundancy pay calculated?

For an eligible employee with at least two years of continuous service, count up to the last twenty complete years: half a week for each year below age 22, one week for ages 22 to 40, and one and a half weeks from age 41. Apply the weekly pay limit for your jurisdiction and relevant date.

What are the 2026 redundancy pay caps?

For relevant dates from 6 April 2026, the weekly limit is £751 in England, Scotland and Wales and £783 in Northern Ireland. The maximum statutory payments are £22,530 and £23,490 respectively. Lower actual weekly pay produces a lower entitlement.

Is a redundancy package below £30,000 entirely tax-free?

Wages, holiday pay, bonuses and taxable notice pay are ordinary taxable earnings even when the package is below £30,000. The shared £30,000 exemption applies to qualifying termination awards after any post-employment notice pay is identified.

Does payment in lieu of notice add service?

Where you are dismissed without statutory notice, the statutory relevant date can extend by the notice you should have received. That may change completed service or the weekly cap. Part-worked notice and special continuity cases need payroll to confirm the relevant date.

Leaving a job

Redundancy Pay Calculator

Calculate statutory redundancy pay by age, service, weekly pay and notice. Compare GB and Northern Ireland caps and classify an itemised package.

Work out statutory redundancy pay

Your dates and pay stay in this browser page. They are not saved or sent to the calculator server.

Date of birth

Continuous employment start

Last day employed, or confirmed relevant date

Gross statutory week’s pay before the cap

Normal weekly contractual pay, or payroll-confirmed average for variable earnings. Use actual part-time pay, not a full-time equivalent.

Employment jurisdiction

Notice and relevant date

If you worked only part of your notice, enter payroll’s confirmed statutory relevant date and choose the first option. Variable hours, commission and family leave affect a statutory week’s pay: ask for the calculation using the applicable 12 paid weeks or your normal pay. This tool does not decide continuity disputes, employment status, suitable alternative work or dismissal eligibility.

I am checking an eligible employee’s ordinary redundancy, with continuous service and a confirmed week’s pay/relevant date or no notice worked

Check what belongs in the £30,000 exemption

The first £30,000 rule applies to qualifying termination awards. Wages, holiday, bonuses and taxable notice pay still follow ordinary tax and NI rules. Enter employer-confirmed components, including £0 where there is no payment.

Check the figures before agreeing a package

Ask for separate lines for statutory redundancy, enhanced redundancy, notice/PILON, unused holiday, wages and bonus. Ask payroll for the relevant date, continuous-service dates, the statutory week’s-pay calculation and any PENP calculation.

Read the age, service and weekly-pay guide · Understand the package tax split

Rules checked 12 November 2026. Verified caps cover relevant dates from 6 April 2025 to 5 April 2027. GOV.UK statutory rules, Northern Ireland rules, HMRC termination-payment tax rules.

Frequently Asked Questions

How is statutory redundancy pay calculated?: For an eligible employee with at least two years of continuous service, count up to the last twenty complete years: half a week for each year below age 22, one week for ages 22 to 40, and one and a half weeks from age 41. Apply the weekly pay limit for your jurisdiction and relevant date.
What are the 2026 redundancy pay caps?: For relevant dates from 6 April 2026, the weekly limit is £751 in England, Scotland and Wales and £783 in Northern Ireland. The maximum statutory payments are £22,530 and £23,490 respectively. Lower actual weekly pay produces a lower entitlement.
Is a redundancy package below £30,000 entirely tax-free?: Wages, holiday pay, bonuses and taxable notice pay are ordinary taxable earnings even when the package is below £30,000. The shared £30,000 exemption applies to qualifying termination awards after any post-employment notice pay is identified.
Does payment in lieu of notice add service?: Where you are dismissed without statutory notice, the statutory relevant date can extend by the notice you should have received. That may change completed service or the weekly cap. Part-worked notice and special continuity cases need payroll to confirm the relevant date.