UK Redundancy Pay Calculator 2026

Redundancy is stressful enough without also being unsure how much you are entitled to. UK statutory redundancy pay follows a fixed formula based on your age, length of service and weekly pay, but the caps involved and the way age bands apply per year of service trip a lot of people up. This calculator works through the statutory formula for you, and lets you compare it against an enhanced package if your employer offers one.

How to use the redundancy pay calculator

Enter your age at the point of redundancy and your complete years of continuous service, noting that only the most recent 20 years count towards the statutory calculation. Add your current weekly pay, which the calculator automatically caps at the current statutory maximum for the statutory figure. If your employer offers an enhanced package, switch to that option and enter how many weeks' pay you get for each year of service under your specific scheme.

How the statutory formula works

For each complete year of service, counting backwards from your redundancy date, you are entitled to a portion of a week's pay based on how old you were during that particular year: 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 week's pay for years worked at 41 or older. Because the multiplier depends on your age during each specific year of service rather than just your age now, someone with a long career that spans multiple age bands has their pay calculated as a mix of these rates, not a single flat multiplier applied to every year.

Your weekly pay is capped at a maximum figure for the statutory calculation, reviewed by the government every April, so higher earners do not get a proportionally larger statutory payout beyond that cap, even though their actual weekly pay may be higher. Service is also capped at 20 years, so anyone with a longer career only has their most recent 20 years counted for the statutory figure.

Worked example

Take someone made redundant at age 45, with 10 complete years of service and a weekly pay of £600, below the statutory cap.

Working backwards through their 10 years of service, the 5 most recent years were worked at ages 45 down to 41, all in the 1.5 multiplier band, contributing 5 × 1.5 = 7.5 weeks' pay. The next 5 years were worked at ages 40 down to 36, in the 1.0 multiplier band, contributing another 5 × 1.0 = 5 weeks' pay. That is a total of 12.5 weeks' pay, so 12.5 × £600 = £7,500 in statutory redundancy pay, entirely tax-free since it is well under the £30,000 threshold.

Notice periods and other entitlements

Redundancy pay is separate from your notice period, which you are also entitled to be paid for, either by working it or receiving pay in lieu of notice, depending on your contract and your employer's approach. Our UK redundancy rights and pay guide covers notice periods, consultation rights and what to check before signing a settlement agreement in full.

Common mistakes when estimating redundancy pay

A common mistake is applying a single age-based multiplier to every year of service, rather than working out the correct multiplier for the age you were during each individual year, which matters a lot for anyone whose career spans the age 41 threshold. Another is forgetting that weekly pay is capped for the statutory calculation, so simply multiplying actual salary by the formula overstates the statutory entitlement for higher earners. If you are also working out your day-to-day take-home pay while your notice period runs, our take-home pay calculator can help.

Related calculators

To see how a lump sum redundancy payment could fit into an emergency fund or savings plan, try our savings goal calculator. For your regular pay while working your notice, our take-home pay calculator and Income Tax calculator give a full breakdown, and our National Insurance calculator helps if you are comparing employed and self-employed options after redundancy.