Statutory Redundancy Pay Calculator
Estimate statutory redundancy pay for England, Wales and Scotland under the 2026/27 limits.
Applies to terminations on or after 6 April 2026: a week's pay is capped at £751 and service at 20 years, so the statutory maximum is £22,530. You normally need 2 years' continuous service — the Employment Rights Act 2025 does NOT change that (its reduction to 6 months applies to unfair dismissal claims from 1 January 2027, not to redundancy pay). Up to £30,000 of your TOTAL termination package is tax-free, so statutory redundancy pay alone is always within it. Figures for England, Wales and Scotland; Northern Ireland has its own rates.
Redundancy pay assumptions
The calculation counts up to 20 complete years of service backwards from your current age and applies the statutory age bands to each year.
Weekly pay is capped at £751 for terminations on or after 6 April 2026; contractual redundancy schemes may pay more.
2026/27 statutory calculation
- 0.5 week for each service year worked below age 22
- 1 week for each service year worked from age 22 to 40
- 1.5 weeks for each service year worked from age 41
Frequently asked questions
Who qualifies for statutory redundancy pay?
You normally need at least two years of continuous service and must be dismissed by reason of redundancy.
What is the maximum statutory redundancy pay in 2026/27?
For qualifying terminations from 6 April 2026, the maximum is £22,530 because service is capped at 20 years and weekly pay at £751.
Is redundancy pay tax-free?
Up to £30,000 of the total qualifying termination package can usually be paid tax-free; other elements may be taxed differently.
Statutory redundancy pay: what you are legally owed in 2026/27
Statutory redundancy pay is not a goodwill gesture — it is a legal entitlement with a formula, and the formula is unusual because your age changes the rate for each individual year you worked. For every full year of service you get half a week's pay for years worked under age 22, one week's pay for years worked between 22 and 40, and one and a half weeks' pay for years worked at 41 or over. The calculator above walks backwards through your service year by year, applying the rate for the age you actually were.
Two limits then apply. A week's pay is capped at £751 for redundancies on or after 6 April 2026 (up from £719), and only your last 20 years of service count. Together they set the statutory maximum at £22,530 — 20 years × 1.5 weeks × £751.
Worked examples
Age 45, 10 years' service, £700 a week: the last four years were worked at 41+ (1.5 weeks each) and six at 22–40 (1 week each), giving 12 weeks × £700 = £8,400. Age 30, 5 years, £600: all five years at 22–40 = 5 weeks = £3,000. Age 60, 25 years, £900: service caps at 20 years and pay caps at £751, giving 29.5 weeks × £751 = £22,154.50 — the cap costs this person nearly £4,500 against their actual wage.
What the headline number hides
- You need 2 years' continuous service — and the Employment Rights Act 2025 did not change that. Its reduction of the qualifying period to six months applies to unfair dismissal claims from 1 January 2027, not to redundancy pay. From that date someone dismissed at one year could claim unfair dismissal yet still receive no redundancy payment.
- £30,000 tax-free is a package cap, not a redundancy allowance. It covers your whole termination package — statutory plus enhanced plus non-cash benefits. Statutory pay alone (max £22,530) always fits inside it, but add a generous employer top-up and the excess is taxable.
- Notice pay and holiday pay are taxed in full — they never share the £30,000 shelter.
- Contractual schemes can pay more, never less. Check your contract and any collective agreement before accepting a figure.
- These rates cover England, Wales and Scotland. Northern Ireland runs its own instrument with its own figures.
Additional questions
Does my employer choose the amount?
No. The statutory sum is a legal minimum calculated from age, service and a week's pay — there is no discretion in it. A dispute over the amount goes to an employment tribunal, and Acas offers free early conciliation first.
What counts as "a week's pay"?
Your normal gross weekly wage before tax, as at the calculation date. For variable hours it is averaged over the previous 12 weeks worked. Whatever it comes to, the calculation uses at most £751 of it.
Is redundancy pay the same as being fired?
No — redundancy means your job ceased to exist (closure, relocation, reduced headcount). If you were dismissed for conduct or performance, no redundancy pay is due. If a genuine redundancy was not handled properly (no consultation, unfair selection), that is a separate unfair dismissal question.
Written & fact-checked by Łukasz Wójcik — independent developer, not a licensed financial adviser. Last reviewed: 2026-08-17.
Methodology & assumptions
This estimate is based on the current statutory rates, caps and eligibility rules for this benefit — it is simplified and does not replace an individual eligibility check, which depends on your exact circumstances and employment history.
Scope & limitations
This calculator is a free, general-purpose estimation tool. It uses simplified assumptions, does not know your full personal or financial circumstances, and is not a substitute for professional financial, tax or legal advice. Figures can change after publication — always check the current rate or threshold at the source below before relying on a result.
Where to check this yourself
Every rate, threshold and rule used above comes from the bodies below. They are the authority; this page is not. Where a figure here disagrees with a source, the source is right — and we would be grateful if you told us. Links go to official government bodies and to registered charities that give free, impartial guidance; none of them pays us and we take no commission.