Statutory redundancy pay calculator

The law sets three different weekly-pay multipliers by age band (0.5x under 22, 1x from 22-40, 1.5x from 41 on), applied per year of service — not one multiplier for your whole length of service. If you've worked through more than one age band, your total entitlement is a mix, weighted toward whichever years you were older (since the 41+ rate is three times the under-22 rate).

It's your average gross weekly earnings over the 12 weeks immediately before you received your redundancy notice — not your current single week's pay, and not take-home pay after tax. If your hours or pay fluctuate, this averaging window is what smooths that out.

The government sets a maximum weekly pay figure used in the statutory calculation, reviewed every April — currently £751. However much you actually earn, the calculation can't use more than this capped figure, which is also why there's an overall statutory maximum payout regardless of how senior or long-serving you are.

This is only the statutory minimum. Many employers offer more generous contractual or enhanced redundancy terms — check your contract or staff handbook. You may also be separately entitled to notice pay, unpaid holiday pay, and other amounts, none of which are included in this figure.

No — it works just as well for planning ahead if redundancy looks possible, or for sanity-checking a figure your employer has already quoted you.

The first £30,000 of a genuine redundancy payment (including any enhanced/contractual element on top of the statutory minimum) is usually tax-free, with the rest taxed as income. This calculator only works out the statutory figure itself, not the tax treatment.

"Age & years" works backward from your age today, one year of service at a time — quick, but it can misjudge a year that straddled your birthday right at the 22 or 41 boundary. "Exact dates" uses your actual date of birth, start date, and leaving date to work out precisely which age band applied in each year of service, matching the official method more closely. Use exact dates if you're near a boundary and want a precise figure.

Treat it as a close estimate, not a guarantee, even in exact-dates mode — it doesn't check your employment status, dismissal reason, continuity of employment (e.g. breaks in service), or other eligibility rules HMRC and your employer apply. Confirm your exact figure with your employer, ACAS, or a solicitor if a real redundancy is involved.