Redundancy pay calculator
A redundancy pay calculator UK wide, because redundancy pay statutory UK rules are a formula rather than a negotiation: age, complete years, and a week's pay capped at £751.00. This works it out and shows each band separately.
Updated 13 September 2026 · Cap from 6 April 2026
How much redundancy pay you get #
| Age during those years | Years | Rate | Weeks |
|---|---|---|---|
| 41 and over | 4 | 1.5 weeks a year | 6 |
| 22 to 40 | 4 | 1 weeks a year | 4 |
| Total weeks | 10 | ||
| Weeks of pay due | 10 |
| A week's pay, capped | £650.00 |
| Statutory redundancy pay | £6,500.00 |
| Tax free | £6,500.00 |
| Taxable | £0.00 |
How to calculate redundancy pay by hand #
How to calculate redundancy payment without the form above, and how is redundancy pay calculated in law, come down to three inputs and one table:
| Your age during that year of service | What that year is worth |
|---|---|
| 41 and over | 1.5 weeks' pay |
| 22 to 40 | 1 weeks' pay |
| Under 22 | 0.5 weeks' pay |
Service is counted backwards from the day you leave, one year at a time, and each year is banded by how old you were during it. That is why someone who turned 41 recently has a mix of bands rather than all their service at the higher rate.
- Complete years only. Eleven months counts as nothing
- Maximum 20 years of service
- A week's pay capped at £751.00 from 6 April 2026
- At least 2 years needed to qualify at all
Those limits combine into a statutory maximum of £22,530.00: 20 years at 1.5 weeks is 30 weeks, times £751.00.
Is redundancy pay tax free? The redundancy pay tax calculator part #
The first £30,000.00 of a genuine redundancy payment is free of Income Tax and National Insurance. Redundancy pay tax free status is one of the few genuinely generous corners of the tax system, and statutory redundancy pay alone almost never reaches the limit.
Do redundancy payments get taxed above the limit? Yes, as income in the year received, at your marginal rate. A large enhanced package can push you into a higher band, and the Self Assessment position is worth checking if the PAYE deduction looks wrong.
Redundancy pay and notice #
Two separate entitlements that arrive together and get confused. Redundancy pay and notice are not alternatives: you get both.
Statutory notice is one week for each complete year of service, between one and twelve weeks. It is either worked or paid in lieu, and either way it is taxed as normal pay. Redundancy pay and tax treatment differ precisely because notice is payment for the job and redundancy is compensation for losing it.
Public sector and NHS schemes #
A redundancy pay calculator NHS staff need is not this one, and it is worth being blunt about why. Redundancy pay in NHS employment, and in much of the public sector, follows a contractual scheme that is more generous than the statutory minimum. Those schemes typically use actual pay rather than the capped week, and a different multiplier.
A redundancy pay UK calculator like this one produces the statutory figure, which is the floor. If you are covered by an NHS or local government scheme, check the scheme terms: your entitlement will usually be higher, and the £30,000.00 tax-free limit still applies to the compensation element of whatever you receive.
Common questions #
How is redundancy pay calculated?
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. Only the last 20 years count, and a week's pay is capped at £751.
What is redundancy pay?
A statutory payment for losing your job because the role is no longer needed. It is compensation for the loss of the job, not payment for work done, which is why it is taxed differently from wages.
How much redundancy pay will I get?
It depends on age, length of service and weekly pay. On the figures entered here, £6,500 from 10 weeks of pay. The statutory maximum is £22,530.
Do I get redundancy pay?
You need at least 2 years of continuous service, and you must be an employee rather than a worker or contractor. Can I get redundancy pay after less than 2 years: not statutory redundancy pay, though a contract may provide more.
Is redundancy pay tax free?
The first £30,000 of a genuine redundancy payment is tax free and free of National Insurance. Anything above that is taxed as income. Statutory redundancy pay on its own is almost always within the limit.
Do redundancy payments get taxed?
Only above £30,000. Note that pay in lieu of notice, holiday pay owed and any bonus are not redundancy pay: they are earnings, and are taxed in full regardless of the £30,000 limit.
What is the maximum statutory redundancy pay?
£22,530. That is 20 years at one and a half weeks, which is 30 weeks, times the £751 weekly cap that took effect on 6 April 2026.
Does redundancy pay include notice pay?
No. Redundancy pay and notice are separate. You are entitled to your notice period or pay in lieu of it on top of statutory redundancy pay, and notice pay is taxed as normal earnings.