UK Redundancy Pay Calculator (2024)
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 (2024)
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.
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.
⚠️ Disclaimer This calculator provides estimates for informational purposes only. Not legal or financial advice. Consult a qualified professional for your specific situation.