HMRC Accurate 2025/26
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Redundancy Pay Calculator
Statutory redundancy entitlement — 2025
£
Redundancy Entitlement
Weekly pay used (max £643)
Qualifying years (max 20)
Weeks entitlement
Statutory Redundancy Pay
⚖️ Statutory redundancy pay is tax-free up to £30,000. If your employer offers more than the statutory minimum, any amount above this threshold may be subject to income tax.

How Statutory Redundancy Pay is Calculated

Statutory redundancy pay depends on your age, length of service (up to a maximum of 20 years) and weekly pay (capped at £643 for 2025):

Age During ServiceWeekly Pay Multiplier
Under 22Half a week's pay per year
22 to 40One week's pay per year
41 and overOne and a half week's pay per year

What Qualifies for Redundancy Pay?

To qualify for statutory redundancy pay you must be an employee (not self-employed or a worker), have worked for your employer for at least 2 continuous years, and have been dismissed due to redundancy.

Is Redundancy Pay Taxable?

The first £30,000 of redundancy pay is tax-free. Any amount above £30,000 is taxable as income. Redundancy pay is not subject to National Insurance contributions regardless of the amount.

Notice Pay and Holiday Pay

In addition to redundancy pay, you're entitled to your notice period pay and any accrued but untaken holiday pay. These are separate from redundancy pay and are subject to income tax and NI in the normal way.