Redundancy pay calculator 2026/27
Work out your statutory redundancy entitlement from your age, length of service and weekly pay — and see how much of your total redundancy package is tax-free.
Calculate your redundancy pay →How statutory redundancy pay is calculated
Statutory redundancy pay depends on age and complete years of service (capped at 20 years): half a week's pay per year under 22, one week's pay per year between 22 and 40, and one and a half weeks' pay per year at 41 or older. Weekly pay is capped at a statutory limit for the calculation.
The first £30,000 of a redundancy package is tax-free. Amounts above £30,000 — and any payment in lieu of notice or accrued holiday pay — are taxed as normal earnings.
Frequently asked questions
How is statutory redundancy pay worked out?
By age and complete years of service (up to 20 years): 0.5 week's pay per year under 22, 1 week per year aged 22–40, and 1.5 weeks per year aged 41+, with weekly pay capped at the statutory limit.
Is redundancy pay tax-free?
The first £30,000 of genuine redundancy pay is tax-free. Anything above that, plus payment in lieu of notice and holiday pay, is taxed as normal earnings through PAYE.
Who qualifies for statutory redundancy pay?
Employees with at least two years' continuous service who are dismissed by reason of redundancy. Many employers pay enhanced redundancy above the statutory minimum.