data tool
Statutory redundancy pay calculator for the UK
Statutory redundancy pay in Great Britain is half a week's pay for each full year worked under 22, one week for each year from 22 to 40, and one and a half weeks for each year at 41 or over, counting back up to 20 years. Weekly pay is capped at £751 for redundancies on or after 6 April 2026, and 2 years' service is needed.
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- Runs on your device, nothing is uploaded
- Free, no sign in
- No watermark, no file limit
How it works
- 1
Enter the dates
Type the date of birth, the first day of work and the last day of work.
- 2
Enter weekly pay
Type gross weekly pay, the average over the 12 weeks before notice, and pick Great Britain or Northern Ireland.
- 3
Read the result
The tiles show the statutory pay, the weeks, the years counted and the weekly pay used after the cap.
- 4
Check the age bands
The line under the tiles splits the counted years into the 41 and over, 22 to 40 and under 22 bands.
How the years are counted backwards
Only full years of continuous service count, and they are counted back from the last day, not forward from the start. The most recent year is worth the most for an older employee, so the order matters. Someone who is 45 on their last day with 15 years' service has four years in which they were 41 or over for the whole year, worth 1.5 weeks each, and eleven earlier years worth one week each: 17 weeks in total. That is the worked example nidirect gives, and the calculator reproduces it. Each year's band is set by the age at the start of that year.
Three employees, worked through
A 45 year old on £600 a week with 15 years gets 17 weeks, £10,200. A 66 year old on £900 a week with 36 years has only the last 20 counted, all at 1.5 weeks: 30 weeks at the capped £751, £22,530, the gov.uk maximum. A 22 year old with 4 years, all spent under 22 in the sense that each year began before the 22nd birthday, gets half a week per year: 2 weeks. Under 2 years of service, nothing is payable at all.
The weekly pay cap
Weekly pay for statutory redundancy is the average gross pay over the 12 weeks before the redundancy notice, including regular overtime, bonuses and commission where they are contractual, and it is capped. The cap rises each April: gov.uk lists £751 for redundancies on or after 6 April 2026, giving a maximum statutory payment of £22,530. Northern Ireland sets its own cap, which nidirect lists as £783. Pay above the cap counts for nothing in the statutory sum, though an employer can pay more under a contract.
Tax on redundancy pay
The first £30,000 of a redundancy payment, statutory and enhanced together, is usually free of income tax and National Insurance. Anything above that is taxed. Pay in lieu of notice, holiday pay and wages owed are taxed as normal pay and are not part of the £30,000. The calculator flags a statutory payment over £30,000, which happens only in Northern Ireland where the cap is higher.
Writing the redundancy letter
An employer must give the employee a written statement of how the redundancy pay was worked out. The letter usually states the last day, the notice, the statutory sum with its weeks and weekly pay, any enhanced payment, holiday pay and how it will be paid. The AI document generator writes a letter like this from a description: give it the employee's dates, the figures from this calculator and the payment date, and it lays them out as a numbered letter ready to sign.
Limits
- Law checked on 21 October 2026 against the Employment Rights Act 1996 and gov.uk. This is arithmetic, not legal advice.
- Weekly pay caps: £751 in Great Britain for redundancies on or after 6 April 2026, and £783 in Northern Ireland as nidirect lists it. Earlier redundancies use the cap of their own date.
- Weekly pay is the figure you type; it is not averaged over the 12 weeks for you, and a week's pay for someone without normal working hours follows its own rules.
- Statutory minimum only; a contractual or enhanced scheme can pay more.
What it does not do
- It does not work out notice pay, holiday pay or tax on the payment.
- It does not decide whether a dismissal is a genuine redundancy.
- It does not store the dates or the pay.
Questions people ask
How many years count for redundancy pay?
Full years of continuous employment with the employer, counted back from the last day, up to a maximum of 20. Part years do not count, and an employee needs at least 2 full years to qualify at all. Some breaks, such as statutory leave, do not break continuity.
Is redundancy pay taxed in the UK?
The first £30,000 of a genuine redundancy payment is usually tax free, including statutory and any enhanced amount. Anything over £30,000 is taxed as income. Payments for notice, holiday or unpaid wages are taxed as earnings whatever the total, so a final payslip often mixes taxed and untaxed amounts.
What is the weekly pay cap for redundancy in 2026?
For redundancies on or after 6 April 2026 in England, Scotland and Wales, weekly pay is capped at £751, making the maximum statutory payment £22,530. Northern Ireland uses a separate figure, listed by nidirect as £783. The cap is reviewed every April.
What counts as a week's pay?
For someone with normal working hours, it is the average gross weekly pay over the 12 weeks before the redundancy notice was given, including contractual overtime, bonuses and commission. If pay was lower because of furlough, gov.uk says to use what the employee would normally have earned.
Do I get redundancy pay if I am offered another job?
If the employer offers suitable alternative work and the employee unreasonably turns it down, the right to statutory redundancy pay can be lost. An employee who accepts a different job has a four week trial period and can still claim redundancy pay if it turns out unsuitable.
How long do I have to claim statutory redundancy pay?
Gov.uk says an employee has 6 months from the date the job ends to apply for statutory redundancy pay, by asking the employer in writing or going to an employment tribunal. If the employer is insolvent, the Redundancy Payments Service can pay it instead.
Write the redundancy letter
Take what you made here into documents.
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Background reading: the question page on this.
Written and checked by the OneCraft team. Last checked .