Redundancy pay calculator UK
Use our free redundancy pay calculator to estimate the statutory payment an eligible employee could receive. Add their age, service dates and weekly pay to see the weeks owed and total.
- Uses the £751.00 weekly pay cap for redundancies from 6 April 2026
- Applies the under 22, 22 to 40 and 41 or over age bands
- Service counted for up to 20 years, with a £22,530.00 maximum
Calculate statutory redundancy pay
Add the employee’s date of birth, employment dates and weekly pay. The calculator uses the rates for redundancies on or after 6 April 2026.
We use this to apply the right age band to each year of service.
Choose the date the employee’s continuous employment with you began.
This is usually the date their employment ends.
Usually the average over the 12 weeks before the employee got their redundancy notice.
Estimate
- Complete years of service
- 11
- Years counted (max 20)
- 11
- Weeks for years under 22
- 0
- Weeks for years aged 22 to 40
- 11
- Weeks for years aged 41+
- 0
- Total weeks’ pay
- 11
- Weekly pay used
- £751.00
- Statutory redundancy pay
- £8,261.00
This calculator gives an estimate for straightforward cases. Check the employee’s contract and the latest GOV.UK guidance before confirming the final payment. GOV.UK redundancy pay guidance.
Redundancy pay worked examples (2026/27)
These examples use the £751.00 weekly pay cap for England, Scotland and Wales from 6 April 2026. They assume continuous service and show statutory redundancy pay only, excluding notice pay and any extra contractual payment.
Age 30 with 4 years’ service
An employee born on 1 October 1996 started work on 1 October 2022 and is made redundant on 1 October 2026. Their average weekly pay is £600.
All 4 complete years fall in the 22 to 40 age band: 4 × 1 week = 4 weeks’ pay. £600 is below the £751.00 cap, so the total is 4 × £600 = £2,400.
Age 50 with 12 years’ service
An employee born on 1 October 1976 started work on 1 October 2014 and is made redundant on 1 October 2026. Their average weekly pay is £900.
They have 3 complete years in the 22 to 40 band and 9 in the 41 or over band: (3 × 1) + (9 × 1.5) = 16.5 weeks’ pay. £900 is capped at £751.00, so the total is 16.5 × £751 = £12,391.50.
The age band applies to each complete year of service, rather than the employee’s age on the redundancy date alone. Exact dates can affect the result.
How statutory redundancy pay is worked out
The amount depends on the employee’s age during each year of service, how long they have worked for you and their weekly pay.
At least 2 years’ service
An employee normally needs at least 2 complete years of continuous employment to qualify for statutory redundancy pay.
Age bands set the weeks owed
For each complete year of service, the employee gets half a week’s pay when they were under 22, one week’s pay when they were aged 22 to 40, or one and a half weeks’ pay when they were 41 or over.
Service and weekly pay are capped
Only the most recent 20 years of service count. Weekly pay is capped at £751.00, which means the highest statutory payment is £22,530.00.
Contracts can pay more
Your company can offer more than the statutory minimum through an employment contract or redundancy policy. This calculator only covers the statutory amount.
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Common questions about statutory redundancy pay
Quick answers about eligibility, age bands and the weekly pay cap.
It is the legal minimum payment an eligible employee normally receives when their job is made redundant after at least 2 years of continuous employment. The amount depends on age, complete years of service and weekly pay, subject to legal limits. It is separate from notice pay.
No. Scotland uses the same statutory age bands, service rules and £751.00 weekly pay cap as England and Wales for redundancies from 6 April 2026. Company schemes can offer more. Northern Ireland has separate payment limits, which this calculator does not use.
It can affect means-tested benefits. Redundancy pay counts as capital for Universal Credit, so the effect depends on the payment and your other savings. Check the GOV.UK guidance for your circumstances. GOV.UK guidance on Universal Credit, money and savings.
Employees who are made redundant normally qualify when they have at least 2 complete years of continuous service. Some types of worker are not eligible, so check the GOV.UK guidance if you are unsure.
Start with the employee’s weekly pay, up to the legal cap. The number of weeks owed depends on their age during each complete year of service, working backwards from the redundancy date.
For redundancies on or after 6 April 2026, weekly pay is capped at £751.00. The maximum statutory redundancy payment is £22,530.00.
Use the employee’s average weekly earnings over the 12 weeks before they received their redundancy notice.
Yes. You can offer more through an employment contract or redundancy policy. The statutory amount is the legal minimum for eligible employees.
It follows the GOV.UK age bands and payment limits for redundancies on or after 6 April 2026. Get advice if there are breaks in service, offers of suitable alternative work or any dispute about the payment.
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