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United Kingdom · Statutory redundancy pay
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SevereArn/United Kingdom

UK Statutory Redundancy Pay Calculator

A UK statutory redundancy pay calculator using the 2026/27 rates effective 6 April 2026. Enter your age, years of continuous service, and weekly pay to see your statutory redundancy pay with the £751/week cap (Great Britain) or £783 (Northern Ireland), age-banded multipliers, the £22,530 / £23,490 maximum, and the £30,000 tax-free limit. Statutory minimum only — contractual redundancy can be higher.

🇬🇧 Tax year 2026/27 (from 6 April 2026)

Your employment details

Statutory redundancy pay🇬🇧 UK
£7,510
10.0 weeks awarded · weekly pay capped at £751
Weeks awarded10.0
Tax-free£7,510
Max possible£22,530

Breakdown

Statutory redundancy pay£7,510.00
Tax-free portion (£30,000 limit)£7,510.00
How we got there
weekly pay capped at £751 (your pay £900 → cap applies)
years counted: 8 (max 20)
age bands: 0 yrs × 0.5 + 4 yrs × 1 + 4 yrs × 1.5 = 10.0 weeks
pay = 10.0 wks × £751 = £7,510 (capped at £22,530)
This calculates the STATUTORY MINIMUM redundancy pay only. Contractual or enhanced redundancy pay agreed in your employment contract can be higher — many employers pay more than the legal minimum.
2026/27 rates (effective 6 April 2026): weekly pay is capped at £751.00 (Great Britain), and the maximum statutory redundancy payment is £22,530. Verified September 8, 2026 (gov.uk).
You need at least 2 years' continuous service to qualify for statutory redundancy pay. A maximum of 20 years is counted.
The first £30,000 of a redundancy payment is tax-free. Any amount above that is taxable. Pay in lieu of notice (PILON) is taxable as earnings and is NOT part of the £30,000 tax-free limit.
Not legal, tax, or financial advice. This calculates the statutory minimum only. Contractual or enhanced redundancy pay can be higher. Confirm current 2026/27 rates on gov.uk and consult ACAS or an employment adviser.

Severance & redundancy in United Kingdom: a complete guide

In the United Kingdom, employees with at least 2 years' continuous service are entitled to a statutory redundancy payment when made redundant. The amount is calculated using a formula set out in the Employment Rights Act 1996, with rates updated each tax year. For 2026/27 (effective 6 April 2026), a week's pay is capped at £751 in Great Britain and £783 in Northern Ireland, and the maximum statutory redundancy payment is £22,530 (GB) or £23,490 (NI).

The statutory formula

The formula awards a set number of weeks' pay for each completed year of service (up to a maximum of 20 years), with the multiplier depending on your age during each year: 0.5 weeks' pay for each year you were under 22, 1 week's pay for each year you were 22–40, and 1.5 weeks' pay for each year you were 41 or older. This calculator applies the gov.uk method — splitting your years of service across the age bands based on your current age and length of service — and caps weekly pay and the total automatically.

Tax treatment

The first £30,000 of a redundancy payment is tax-free. Any amount above £30,000 is taxable. Importantly, pay in lieu of notice (PILON) is taxable as earnings and is NOT part of the £30,000 tax-free limit — it is treated separately. This calculator shows the tax-free and taxable portions of your statutory redundancy pay so you can see what you actually keep.

Enhanced / contractual redundancy

This calculator shows the STATUTORY MINIMUM only. Many employers offer contractual or enhanced redundancy pay that is higher than the legal minimum — sometimes significantly. Check your employment contract or staff handbook for an enhanced redundancy scheme. If your employer offers more than the statutory amount, that is the figure to benchmark, not the legal floor.

2026/27 rates verified: weekly pay cap £751 (GB) / £783 (NI); maximum statutory redundancy payment £22,530 (GB) / £23,490 (NI), effective 6 April 2026. Verified September 8, 2026 (gov.uk). Re-check on gov.uk before relying on the figures.

Frequently asked questions

What is the 2026/27 statutory redundancy pay cap?

For the tax year 2026/27 (effective 6 April 2026), a week's pay is capped at £751 in Great Britain and £783 in Northern Ireland. If your actual weekly pay is higher, the statutory calculation uses the cap, not your real pay. Verified on gov.uk and nidirect.gov.uk.

How much is the maximum statutory redundancy payment?

The maximum statutory redundancy payment is £22,530 in Great Britain and £23,490 in Northern Ireland for 2026/27. This equals 30 weeks at the capped weekly pay (20 years × 1.5 weeks for someone aged 41+ throughout). Contractual or enhanced redundancy pay can be higher.

Do I qualify for statutory redundancy pay?

You need at least 2 years' continuous service to qualify for statutory redundancy pay. A maximum of 20 years is counted. If you have under 2 years you are not entitled to statutory redundancy pay, though you may still be owed contractual redundancy, notice pay, and accrued holiday pay.

Is redundancy pay taxed?

The first £30,000 of a redundancy payment is tax-free. Any amount above £30,000 is taxable. Pay in lieu of notice (PILON) is taxable as earnings and is NOT part of the £30,000 tax-free limit. This calculator shows the tax-free and taxable portions of your statutory redundancy pay.

Is this calculator legal or tax advice?

No. It calculates the statutory minimum using 2026/27 rates. Contractual or enhanced redundancy can be higher, and individual circumstances vary. Confirm current figures on gov.uk and consult an employment adviser or ACAS before relying on this for a real redundancy.

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Sources & methodology

A UK statutory redundancy pay calculator using the 2026/27 rates effective 6 April 2026. Enter your age, years of continuous service, and weekly pay to see your statutory redundancy pay with the £751/week cap (Great Britain) or £783 (Northern Ireland), age-banded multipliers, the £22,530 / £23,490 maximum, and the £30,000 tax-free limit. Statutory minimum only — contractual redundancy can be higher.

Last updated: October 2026
GOV.UK: Redundancy paynidirect: Redundancy pay (Northern Ireland)