Redundancy Pay Calculator
Statutory redundancy entitlement — 2026
£
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 £751 for 2026/27):
| Age During Service | Weekly Pay Multiplier |
|---|---|
| Under 22 | Half a week's pay per year |
| 22 to 40 | One week's pay per year |
| 41 and over | One 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.
Frequently Asked Questions
Statutory redundancy pay depends on your age and years of service (up to 20 years), and your weekly pay capped at £751 (2026/27). Under 22: half a week's pay per year. Age 22-40: one week's pay per year. Over 41: one and a half week's pay per year. Use the calculator above to get your exact figure instantly.
To qualify for statutory redundancy pay you must: be an employee (not a worker or self-employed), have worked for your employer for at least 2 continuous years, and have been dismissed due to redundancy. Agency workers, self-employed contractors and people who resign do not qualify for statutory redundancy pay.
The first £30,000 of redundancy pay is completely tax-free, regardless of whether it's statutory or enhanced redundancy pay. Any redundancy payment above £30,000 is subject to income tax at your marginal rate. Redundancy pay is never subject to National Insurance contributions, even amounts above £30,000.
Yes. Many employers pay more than the statutory minimum — this is called enhanced or contractual redundancy pay. Some employment contracts guarantee enhanced redundancy pay. Check your contract of employment or staff handbook. Any payment above the statutory minimum up to £30,000 is still tax-free.
If your employer refuses to pay statutory redundancy pay and you believe you're entitled, you can make a claim to an Employment Tribunal. You must do this within 6 months of your dismissal date. You can also contact ACAS (0300 123 1100) for free advice, or submit a complaint to the Insolvency Service if your employer is insolvent.