Updated for 2026/27 — £751/week statutory cap

UK Redundancy Pay Calculator

Find out exactly how much statutory redundancy pay you are entitled to. Enter your details for an instant, accurate breakdown using the official UK formula — free, no sign-up required.

Official statutory formula
2026/27 rates (£751 cap)
Free — no sign-up
Instant breakdown

Calculate your redundancy pay

Using the official statutory formula — 2025/26 rates

Only complete years count. Maximum 20 years used in the statutory formula.

£

Statutory cap: £751/week for 2025/26. Higher amounts are capped automatically.

Enhanced redundancy pay

Your employer may offer more than the statutory amount

Your redundancy rights

Understanding what you are entitled to — beyond the statutory payment.

Minimum eligibility: 2 years

You must have at least 2 years of continuous service with the same employer to qualify. Part-time and fixed-term employees have the same rights as full-time permanent staff.

Consultation requirements

Employers must consult with affected employees before making them redundant. For 20 or more redundancies, a minimum 30-day collective consultation period applies (45 days for 100+). Individual consultation is always required.

Redundancy during maternity or parental leave

You have enhanced protection during maternity, adoption, or shared parental leave. Your employer must offer you any suitable alternative vacancy ahead of other employees. Redundancy purely because of pregnancy or maternity is automatic unfair dismissal.

Notice pay entitlement

You are entitled to statutory notice pay: 1 week per year of service up to 12 weeks, or your contractual notice if longer. Notice pay and redundancy pay are separate — you receive both.

Right to appeal

If your redundancy is unfair — for example, the selection process was discriminatory, or you were selected for whistleblowing — you may have grounds for unfair dismissal. You can raise a grievance, make an Acas early conciliation claim, or bring an Employment Tribunal claim.

Insolvency: claim from the government

If your employer is insolvent, apply to the Redundancy Payments Service to claim redundancy pay, unpaid wages, holiday pay, and notice pay directly from the National Insurance Fund.

How statutory redundancy pay is calculated

Statutory redundancy pay is calculated using a formula set by the UK government. It depends on three factors: your current age, your complete years of continuous service, and your gross weekly pay (subject to a statutory cap).

Each year of service is assigned a multiplier based on how old you were during that year. This means a single redundancy can span multiple age bands — for example, someone who is 43 and has worked for 5 years will have spent some of those years in the 22–40 band and some in the 41+ band.

The formula

Under 22 (each year)× 0.5 week's pay
Age 22–40 (each year)× 1 week's pay
Age 41+ (each year)× 1.5 weeks' pay

Weekly pay capped at £751 · Service capped at 20 years · Maximum: £22,530

Enhanced redundancy pay works the same way but your employer applies a higher multiplier to the final statutory figure — for example, 1.5× gives you 50% more.

Frequently asked questions

How is statutory redundancy pay calculated?

Statutory redundancy pay is based on your age, complete years of continuous service (capped at 20), and your weekly gross pay (capped at £751 for 2026/27). You receive half a week's pay for each year worked under age 22, one week's pay for each year aged 22–40, and one and a half weeks' pay for each year aged 41 or over.

What is the weekly pay cap for 2026/27?

The weekly pay cap is £751 from 6 April 2026. This means the maximum statutory redundancy pay is £22,530 (30 weeks × £751). The cap is reviewed each April.

Do I qualify for statutory redundancy pay?

You qualify if you are an employee (not self-employed), have worked for your employer for at least 2 continuous years, and have been made redundant. You do not qualify if you resign, are dismissed for misconduct, or are offered suitable alternative employment and refuse it.

What's the difference between statutory and enhanced redundancy pay?

Statutory redundancy pay is the legal minimum set by the UK government. Enhanced redundancy pay is an additional amount some employers offer voluntarily — for example, 1.5× or 2× the statutory amount. Check your employment contract or staff handbook for your employer's policy.

Can I be made redundant while on maternity leave?

Your employer cannot make you redundant simply because you are on maternity leave — that would be automatic unfair dismissal and sex discrimination. However, a genuine redundancy situation can arise during maternity leave. If so, you must be offered any suitable alternative vacancy before other employees, and your redundancy pay is calculated on your normal weekly pay, not reduced maternity pay.

Does redundancy pay overlap with notice pay?

Statutory redundancy pay and notice pay are separate entitlements and you receive both. Your notice period (or payment in lieu of notice) runs from the date you are notified. You also receive your redundancy payment at the end of employment.

Is redundancy pay taxable?

Statutory redundancy pay is not subject to income tax or National Insurance. However, any enhanced redundancy payment that takes your total non-contractual termination payment above £30,000 may be taxable. Payments in lieu of notice (PILON) are subject to tax and NI.

What if my employer can't afford to pay?

If your employer is insolvent, you can claim statutory redundancy pay directly from the government's National Insurance Fund via the Redundancy Payments Service (part of the Insolvency Service). The government will pay what you are legally owed.