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UK Redundancy Pay Calculator

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Calculate statutory redundancy pay using the official Employment Rights Act 1996 formula — age bands, weekly pay cap, and maximum service years.

🇬🇧 United Kingdom✔ ERA 1996⚡ Instant

🇬🇧 UK Redundancy Pay Calculator

Results update instantly as you type

yrs
yrs
Maximum counted: 20 years
£
Cap: £643/week (2024/25) — use lower of actual or cap
Statutory Redundancy Pay
£0
Before income tax (first £30,000 is tax-free)
Redundancy Pay
£0
Effective Weekly Pay
£0
Weeks Entitlement
0
ℹ️ First £30,000 of redundancy pay is tax-free. Amount above £30,000 is subject to income tax. NI contributions do not apply to statutory redundancy pay.

How to Use the UK Redundancy Pay Calculator

1

Enter your age at dismissal

UK statutory redundancy uses age-weighted multipliers: 0.5 weeks' pay per year of service under 22, 1 week per year aged 22–40, and 1.5 weeks per year aged 41 and over. Each band applies only to service during that age range.

2

Enter your gross weekly pay

Input your actual gross weekly earnings. Statutory redundancy is capped at £643/week (2024/25, reviewed every April). Earnings above this cap do not increase the statutory amount.

3

Enter years of continuous employment

Count only continuous service with the same employer. Service before age 16 does not count. The maximum qualifying period is 20 years regardless of actual service length.

4

Verify the tax-free threshold

Statutory redundancy pay is capped at £19,290 (2024/25). Combined with any other termination payment, the first £30,000 of a redundancy package is tax-free. Amounts above £30,000 are taxed as income.

UK Statutory Redundancy Pay — Employment Rights Act 1996

Statutory Redundancy Pay (SRP) is the minimum legal payment you are entitled to if you are made redundant in the UK with at least 2 years of continuous service. The amount depends on your age at the date of redundancy, your weekly pay (capped), and the number of completed years of service (maximum 20).

Age-Based Multipliers

The ERA 1996 uses three age bands: each year of service under age 22 counts as half a week's pay; each year between 22 and 40 counts as one week's pay; and each year aged 41 or over counts as one and a half week's pay.

📐 UK Redundancy Pay Formula

Weeks × Effective Weekly Pay (max £643)
½ wkEach year of service: age under 22
1 wkEach year of service: age 22–40
1½ wkEach year of service: age 41+
Cap£643/week (2024/25); max 20 years
📝 Example — Age 35, 8 years service, £550/week: 8 years (all age 22-40): 8 × 1.0 = 8 weeks
8 × £550 = £4,400 statutory redundancy pay

Frequently Asked Questions

You need at least 2 complete years of continuous service with your employer to qualify for statutory redundancy pay. If you have less than 2 years, you have no statutory entitlement (though your contract may provide for it).
The first £30,000 of your total redundancy payment (including any ex-gratia element) is tax-free. Any amount above £30,000 is subject to income tax but not National Insurance contributions. This applies to the total redundancy payment, not just the statutory element.
Yes. Many employers offer enhanced redundancy pay above the statutory minimum — often calculated using actual weekly pay (without the cap) or a more generous multiplier. Check your contract or collective agreement.
UK statutory redundancy pay is based on: age, weekly gross pay (capped at £643/week in 2025/26), and years of service (max 20). Rate: 0.5 weeks' pay per year under age 22; 1 week per year aged 22–40; 1.5 weeks per year over 40. Maximum statutory redundancy pay: £19,290. Check your employment contract — many employers pay above the statutory minimum.
The first £30,000 of genuine redundancy pay is tax-free in the UK. Amounts above £30,000 are subject to income tax (but not National Insurance). Notice pay, payment in lieu of notice (PILON), and accrued holiday pay do not qualify for the £30,000 exemption — they are taxed as income regardless. Always consult an accountant for complex redundancy packages.
⚠️ Disclaimer This calculator provides estimates for informational purposes only. Not legal or financial advice. Consult a qualified professional for your specific situation.

Sources & Methodology

Calculations are based on the most current publicly available data from authoritative government and industry sources: