Redundancy Pay Calculator UK: statutory pay and tax
Work out your statutory redundancy pay the way the GOV.UK calculator does, see how much of your payment is tax-free and estimate the income tax on the rest.
- Official sources cited
- Last updated
- Free, no sign-up
Your details
Use the original redundancy date, even if you were paid in lieu of notice. It decides the weekly pay cap.
Only count full years. For example, 3 years and 9 months counts as 3.
Before tax and other deductions such as student loans.
Northern Ireland has its own weekly pay cap, and Scotland its own income tax bands.
Pay from your employer on top of the statutory amount, such as enhanced redundancy.
Post-Employment Notice Pay (PENP). Your employer works it out; it is taxed as earnings and does not count towards the £30,000.
Holiday pay, unpaid wages, bonuses and pay in lieu of notice. These are always taxed.
Your pay from earlier in the tax year, for the income tax estimate. With £0 the estimate is for someone with no other income, which understates the tax for most people.
Your result
Statutory redundancy pay
£6,000.00
| Step | Amount |
|---|---|
| Full years of service countedWhole years only, up to 20; you need at least 2 | 10 years |
| Weekly pay countedYour weekly pay (the cap is £751) | £500.00 |
| Weeks of pay you are owed0.5, 1 or 1.5 weeks for each year, by your age in that year | 12 weeks |
| Statutory redundancy payWeeks owed × weekly pay counted | £6,000.00 |
| Total paymentStatutory pay + extra pay + other taxable pay | £6,000.00 |
| Tax-free part (up to £30,000)Statutory pay + extra pay that is not notice pay, up to the limit | £6,000.00 |
| Taxable partRedundancy pay over the limit + notice pay and other taxable pay | £0.00 |
| Estimated income taxExtra income tax on the taxable part, on top of your other income | £0.00 |
| Payment after income taxTotal payment − estimated income tax (National Insurance not included) | £6,000.00 |
- Weekly pay cap (Great Britain)
- £751
- Most statutory pay can come to
- £22,530
Based on a redundancy between 6 Apr 2026 and 5 Apr 2027. The income tax estimate uses 2026 to 2027 tax year rates for England and your other income of £0. It leaves out National Insurance.
How to use this calculator
- Enter the date you were made redundant, your age on that date, your full years of service and your weekly pay before tax.
- Choose where you work: Northern Ireland has its own weekly pay cap. The result updates as you type.
- To see what is tax-free, add any extra redundancy or severance pay, and open More options for notice pay, other taxable pay and your other income.
How statutory redundancy pay is worked out
Statutory redundancy pay is a number of weeks of pay. You need at least 2 full years of service. We count whole years only, up to 20, and for each year we add half a week, one week or one and a half weeks, depending on your age in that year. We work back from your age on the redundancy date, so each earlier year uses an age one year lower.
A week of pay is your weekly pay before tax, but never more than the weekly cap for your redundancy date. We use the same rules as the calculator on GOV.UK, whose code is public, and we checked our figures against it.
- Age 22 or under in that year: 0.5 weeks of pay
- Age 23 to 41 in that year: 1 week of pay
- Age 42 or over in that year: 1.5 weeks of pay
- Statutory redundancy pay = weeks owed × weekly pay (up to the cap)
- The tax-free part is the first £30,000 of statutory pay plus extra redundancy pay
Worked examples
Age 45, 10 years of service, £500 a week
Four years at 1.5 weeks and six at 1 week: 12 weeks.
Statutory redundancy pay
£6,000.00
| Step | Amount |
|---|---|
| Full years of service countedWhole years only, up to 20; you need at least 2 | 10 years |
| Weekly pay countedYour weekly pay (the cap is £751) | £500.00 |
| Weeks of pay you are owed0.5, 1 or 1.5 weeks for each year, by your age in that year | 12 weeks |
| Statutory redundancy payWeeks owed × weekly pay counted | £6,000.00 |
| Total paymentStatutory pay + extra pay + other taxable pay | £6,000.00 |
| Tax-free part (up to £30,000)Statutory pay + extra pay that is not notice pay, up to the limit | £6,000.00 |
| Taxable partRedundancy pay over the limit + notice pay and other taxable pay | £0.00 |
| Estimated income taxExtra income tax on the taxable part, on top of your other income | £0.00 |
| Payment after income taxTotal payment − estimated income tax (National Insurance not included) | £6,000.00 |
Age 60, 20 years of service, £1,000 a week
Pay above the cap: £751 a week counts, so 29.5 weeks pay £22,154.50.
Statutory redundancy pay
£22,154.50
| Step | Amount |
|---|---|
| Full years of service countedWhole years only, up to 20; you need at least 2 | 20 years |
| Weekly pay countedCapped at £751 a week | £751.00 |
| Weeks of pay you are owed0.5, 1 or 1.5 weeks for each year, by your age in that year | 29.5 weeks |
| Statutory redundancy payWeeks owed × weekly pay counted | £22,154.50 |
| Total paymentStatutory pay + extra pay + other taxable pay | £22,154.50 |
| Tax-free part (up to £30,000)Statutory pay + extra pay that is not notice pay, up to the limit | £22,154.50 |
| Taxable partRedundancy pay over the limit + notice pay and other taxable pay | £0.00 |
| Estimated income taxExtra income tax on the taxable part, on top of your other income | £0.00 |
| Payment after income taxTotal payment − estimated income tax (National Insurance not included) | £22,154.50 |
Age 45, 10 years, £500 a week, plus £25,000 extra pay
With £30,000 of other income this year: £30,000 of the £31,000 total is tax-free, and the extra £1,000 is taxed.
Statutory redundancy pay
£6,000.00
| Step | Amount |
|---|---|
| Full years of service countedWhole years only, up to 20; you need at least 2 | 10 years |
| Weekly pay countedYour weekly pay (the cap is £751) | £500.00 |
| Weeks of pay you are owed0.5, 1 or 1.5 weeks for each year, by your age in that year | 12 weeks |
| Statutory redundancy payWeeks owed × weekly pay counted | £6,000.00 |
| Total paymentStatutory pay + extra pay + other taxable pay | £31,000.00 |
| Tax-free part (up to £30,000)Statutory pay + extra pay that is not notice pay, up to the limit | £30,000.00 |
| Taxable partRedundancy pay over the limit + notice pay and other taxable pay | £1,000.00 |
| Estimated income taxExtra income tax on the taxable part, on top of your other income | £200.00 |
| Payment after income taxTotal payment − estimated income tax (National Insurance not included) | £30,800.00 |
Statutory redundancy pay by years of service
For someone aged 45 on £500 a week, made redundant in 2026/27 in England, Wales or Scotland. Use the calculator above for your own age and pay.
| Years worked for your employer | Weeks of pay you are owed | Statutory redundancy pay |
|---|---|---|
| 2 | 3 weeks | £1,500.00 |
| 3 | 4.5 weeks | £2,250.00 |
| 5 | 7 weeks | £3,500.00 |
| 10 | 12 weeks | £6,000.00 |
| 15 | 17 weeks | £8,500.00 |
| 20 | 22 weeks | £11,000.00 |
The weekly pay cap and the maximum
If you were made redundant on or after 6 April 2026, your weekly pay counts for no more than £751 in Great Britain, and the most statutory redundancy pay you can get is £22,530 (GOV.UK). Northern Ireland has its own figures: £783 a week and £23,490.
The cap changes every April and depends on your redundancy date, not on the date you are paid. The calculator picks the right figures from the date you enter, and shows the cap it used.
Why your age in each year matters
The age bands apply to each year of service, not to your age today. Someone aged 45 with 10 years of service gets one and a half weeks for each of the four most recent years, while the six earlier years, when they were younger, count at one week each. That is 12 weeks in total.
Several websites state the bands differently, for example "41 and over" or "42 and over". We follow the GOV.UK calculator, which uses your age in each year of service, so the result matches the official tool.
Is redundancy pay taxed?
You do not usually pay tax on the first combined £30,000 of statutory redundancy pay, enhanced redundancy or severance pay from your employer, and non-cash benefits. You pay tax on anything over that, and your employer pays Class 1A National Insurance on it (GOV.UK).
Some parts of a termination payment are always taxed as earnings, with National Insurance as well: holiday pay, unpaid wages, bonuses, and payments instead of working your notice, including Post-Employment Notice Pay (PENP). PENP does not apply to statutory redundancy pay.
This calculator estimates the income tax on the taxable part by adding it to your other income for the tax year. National Insurance is not included. Your employer takes tax through payroll, and after you have left they may use a 0T tax code, which takes more tax than you finally owe; the difference comes back after the tax year.
Enhanced and voluntary redundancy
Your employer can pay more than the statutory amount, for example under a redundancy scheme, but not less. Enter any extra pay under "Extra redundancy or severance pay" to see how much of the total is tax-free. The same applies to voluntary redundancy: statutory pay is the minimum, and what you are offered above it depends on your employer.
What this calculator does not cover
It does not work out PENP, National Insurance, payments for injury or disability, or special rules for people who are not UK tax residents, seafarers and members of the armed forces. For those, use the GOV.UK guide or ask your employer or HMRC.
It shows the legal minimum and an estimate. If the figure you have been offered is lower than the statutory amount, ask your employer to explain, and see Acas for free advice.
Frequently asked questions
How is statutory redundancy pay calculated?
You get half a week of pay for each full year of service at age 22 or under, one week for each year at 23 to 41, and one and a half weeks for each year at 42 or over, counting back from your age when you were made redundant, up to 20 years. Weekly pay is capped. For example, age 45 with 10 years on £500 a week is 12 weeks, so £6,000.
What is the weekly pay cap and the maximum redundancy pay in 2026/27?
For redundancies on or after 6 April 2026 the cap is £751 a week and the most you can get is £22,530 in Great Britain. In Northern Ireland they are £783 a week and £23,490. See GOV.UK.
Who is entitled to statutory redundancy pay?
You need to have worked for your employer continuously for at least 2 years. With less than 2 full years there is no statutory redundancy pay, although your employer may still offer something. Only full years count, so 1 year and 11 months counts as 1.
How much redundancy pay will I get after 10 years?
It depends on your age and pay. At age 45 on £500 a week, 10 years gives 12 weeks, which is £6,000. At age 30 on the same pay it is 9 weeks (eight years at one week and two at half a week), which is £4,500. If your weekly pay is above the cap, the cap is used instead.
What is the maximum statutory redundancy pay?
In Great Britain, £22,530 for redundancies on or after 6 April 2026. You reach it with the full 20 years counted, 30 weeks of pay (for example age 61, so every counted year is at 42 or over) and weekly pay of at least £751.
Does age affect how much redundancy pay I get?
Yes, through your age in each year of service: half a week of pay at age 22 or under, one week from 23 to 41 and one and a half weeks from 42. Someone aged 60 with 20 years and £1,000 a week (capped at £751) gets 29.5 weeks, which is £22,154.50.
Is redundancy pay taxable?
The first combined £30,000 of statutory redundancy pay, enhanced redundancy or severance pay and non-cash benefits is not usually taxed. Anything over £30,000 is taxed. Holiday pay, unpaid wages, bonuses and pay instead of working your notice are always taxed as earnings. See GOV.UK.
How much tax do I pay on redundancy pay over £30,000?
Income tax at your rate on the part over £30,000, added to your other income for the year. For example, £6,000 statutory pay plus £25,000 extra is £31,000, so £1,000 is taxable. With £30,000 of other income that costs £200 in income tax. Your employer pays Class 1A National Insurance on it.
What is PENP (Post-Employment Notice Pay)?
The part of your severance or enhanced redundancy pay that is equivalent to what you would have earned if you had worked your notice. It is taxed as earnings, with National Insurance, and it does not count towards the £30,000. It does not apply to statutory redundancy pay. Your employer works it out.
Is redundancy pay different in Northern Ireland?
The rules are the same, but the weekly pay cap is higher. For redundancies on or after 6 April 2026 it is £783 a week in Northern Ireland and £751 in Great Britain. Age 60 with 20 years on £1,000 a week gets £23,098.50 in Northern Ireland and £22,154.50 in Great Britain.
Can my employer pay me less than the statutory amount?
No. You cannot get less than the statutory amount, but you may get more if your employer has a redundancy scheme. If your offer is lower, ask your employer to explain and see Acas.
Sources
- GOV.UK: Calculate your redundancy pay
The official calculator. Our rules follow its published source code (alphagov/smart-answers, redundancy_calculator.rb), read on 9 October 2026, and our figures match it.
- GOV.UK: Statutory redundancy pay
The weekly pay cap (£751) and the maximum (£22,530) from 6 April 2026, and that redundancy pay under £30,000 is not taxable.
- GOV.UK: Tax on termination payments
The first combined £30,000 is not usually taxed; PENP, holiday pay, bonuses and pay in lieu of notice are taxed as earnings; the worked examples.
This is an estimate for guidance only, not financial or legal advice.
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