Free UK employment calculator
Statutory redundancy pay calculator for 2026
Work out the minimum redundancy payment an employee is owed, using their age, length of service and weekly pay. Uses the £751 weekly cap for redundancies from 6 April 2026.
Figures checked 15 October 2026 · England, Wales and Scotland
Calculator
Leave blank if you gave no notice or paid in lieu.
The day notice runs out, or the actual leaving date if paid in lieu.
Monthly salary × 12 ÷ 52, or the 12-week average if pay varies.
How it is worked out
An employee needs two years' continuous employment, ending with the date their employment ends, to qualify (Employment Rights Act 1996, s155).
Everything is measured to the relevant date: normally the day employment ends. If you gave less notice than the statutory minimum, or none (for example paying in lieu), the relevant date moves to when statutory notice would have run out (s145(5)). That later date decides whether the employee has two years' service, how many years and which age bands count, and which weekly cap applies.
Count back complete years of service from that date, up to a maximum of 20. Each year earns a number of weeks' pay depending on the employee's age during that year (s162):
- half a week's pay for each year when they were under 22
- one week's pay for each year when they were 22 to 40
- one and a half weeks' pay for each year when they were 41 or over
A week's pay is gross pay for normal working hours, averaged over 12 weeks if it varies, and capped at £751 where the relevant date is on or after 6 April 2026 (£719 for the year before). That makes the maximum statutory payment £22,530.
Up to £30,000.00 of statutory and other non-contractual termination payments is tax-free. Notice pay and holiday pay are taxed as normal.
Worked example
Priya is 45 and has worked for you for 16 years. Her pay is £800 a week. Her last 5 years were all at 41 or over (5 × 1.5 = 7.5 weeks) and the 11 years before that at 22 to 40 (11 weeks), so 18.5 weeks. Her pay is capped at £751, giving £13,893.50.
Questions employers ask
+Who is entitled to statutory redundancy pay?
An employee dismissed because of redundancy who has at least two years' continuous employment by the date their employment ends (Employment Rights Act 1996, s155). Workers and the genuinely self-employed are not entitled.
+How is statutory redundancy pay calculated?
Count back complete years of service from the end date, up to 20. For each year: half a week's pay if the employee was under 22, one week's pay if aged 22 to 40, and one and a half weeks' pay if aged 41 or over (s162).
+What is the redundancy pay cap for 2026?
A week's pay is capped at £751 where the relevant date is on or after 6 April 2026, so the maximum statutory payment is £22,530 (30 weeks). Where it falls between 6 April 2025 and 5 April 2026 the cap is £719 and the maximum £21,570 (SI 2026/310).
+What is the relevant date for redundancy pay?
Usually the day employment ends. But if the employer gave less than the statutory minimum notice, or paid in lieu, the relevant date is pushed back to when statutory notice would have ended (Employment Rights Act 1996, s145(5)). That later date is used for the two-year qualifying test, for counting years of service and age, and for choosing the weekly cap. This calculator works it out for you.
+Is redundancy pay taxable?
Statutory redundancy pay is not taxed, and nor is any other non-contractual termination payment, up to a combined £30,000 (ITEPA 2003, s403). Notice pay, holiday pay, wages and bonuses are taxed as normal, even when paid as part of a redundancy package.
+Does service before age 18 count?
Yes. The old rule ignoring service before 18 was repealed on 1 October 2006. All complete years of continuous employment now count, up to the 20-year limit, at the half-week rate while under 22.
+How long does an employee have to claim redundancy pay?
They must, within six months of the relevant date, have received the payment, agreed it in writing, made a written claim to the employer, or brought a tribunal claim for it or for unfair dismissal (s164(1)). A tribunal can allow a claim in the following six months if it is just and equitable (s164(2)).
+Can I pay more than statutory redundancy pay?
Yes. Many employers have an enhanced scheme, or it is in the contract. You can never pay less than the statutory amount.
+Has the Employment Rights Act 2025 changed redundancy pay?
Not the statutory payment. It did double the maximum protective award for failing to consult collectively to 180 days' pay from 6 April 2026, and changes to the collective consultation threshold are expected in 2027.
Sources
- Employment Rights Act 1996, s145 (the relevant date)
- Employment Rights Act 1996, s155 (two years' qualifying service)
- Employment Rights Act 1996, s162 (amount of a redundancy payment)
- Employment Rights Act 1996, s164 (time limit for claiming)
- Employment Rights Act 1996, s221 (a week's pay)
- Employment Rights Act 1996, s227 (cap on a week's pay)
- Employment Rights (Increase of Limits) Order 2026, SI 2026/310
- GOV.UK: Redundancy pay
- Income Tax (Earnings and Pensions) Act 2003, s403 (£30,000 threshold)
- GOV.UK: Redundancy, tax and National Insurance
This calculator gives a general estimate based on the law and statutory figures in force on 15 October 2026 for England, Wales and Scotland. It is not legal advice and does not take account of your contract, your policies or any special circumstances. Contractual terms can give more than the statutory minimum, never less. Northern Ireland has its own rules and limits and is not covered. Nothing you enter is stored or sent anywhere: the sums are done in your browser.