Redundancy Pay Calculator 2025-26

Calculate statutory redundancy pay based on your age, weekly pay and years of service. Updated for 2025/26.

Last updated: April 2026 · Source: GOV.UK — Redundancy pay

£

Statutory Redundancy Pay

£3,000.00

5 weeks' pay

Tax-Free (up to £30,000)

£3,000.00

Weekly Pay Used

£600.00

How it's calculated:

Under 22: 0.5 week per year of service

22 to 40: 1 week per year of service

41 and over: 1.5 weeks per year of service

Weekly pay capped at £700. Maximum 20 years counted.

Disclaimer

This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.

How It Works

Statutory redundancy pay is calculated based on your age, length of continuous service (up to 20 years) and weekly pay (capped at £700 for 2025/26). The formula gives: 0.5 weeks' pay per year of service under age 22, 1 week per year aged 22–40, and 1.5 weeks per year aged 41 and over.

The maximum statutory redundancy payment is therefore 30 weeks' pay (20 years × 1.5 for over-41s), capped at £21,000 (30 × £700). Your employer may offer enhanced redundancy pay above the statutory minimum.

The first £30,000 of any redundancy payment (statutory plus contractual) is tax-free. Amounts above £30,000 are subject to income tax and potentially employer NI.

Example: Age 45, 12 years' service, £650/week salary

  1. Years aged 22–40: 7 years × 1 week × £650 = £4,550
  2. Years aged 41–45: 5 years × 1.5 weeks × £650 = £4,875
  3. Total statutory redundancy: £9,425 (tax-free)

Source: GOV.UK — Redundancy pay

Frequently Asked Questions

How is statutory redundancy pay calculated?
Statutory redundancy pay is based on your age, length of service (up to 20 years) and weekly pay (capped at £700 for 2025/26). You get 0.5 weeks' pay per year of service aged under 22, 1 week per year aged 22-40, and 1.5 weeks per year aged 41 and over.
Is redundancy pay taxable?
The first £30,000 of redundancy pay (including statutory and any contractual redundancy) is tax-free. Amounts above £30,000 are subject to income tax and potentially National Insurance.