Redundancy Pay Calculator UK
Calculate your statutory redundancy pay for 2026 using your age, years of service and weekly pay (capped at £751). See your tax-free entitlement instantly.
Last updated 21 June 2026 · Written and reviewed by Mustafa Bilgic
Redundancy pay calculator
2026 — £751 weekly cap, 20-year limit.
Estimate only — figures use the latest published UK rates. Always confirm on GOV.UK.
How is statutory redundancy pay calculated?
If you have worked for your employer for at least 2 years, you are usually entitled to statutory redundancy pay. The amount depends on your age, your length of service and your weekly pay. For each full year worked you get: half a week's pay for years when you were under 22, one week's pay for years aged 22 to 40, and one and a half weeks' pay for years aged 41 and over.
A 42-year-old with 10 years' service earning £650 a week gets roughly 1 year at 1.5 weeks (age 41+) plus 9 years at 1 week = 10.5 weeks × £650 = £6,825 tax-free.
2026/27 redundancy pay limits
| Item | From 6 April 2026 |
|---|---|
| Weekly pay cap | £751 |
| Maximum years counted | 20 |
| Maximum statutory pay | £22,530 |
| Under 22 | 0.5 week per year |
| Age 22–40 | 1 week per year |
| Age 41+ | 1.5 weeks per year |
Source: GOV.UK — Redundancy pay, rates from 6 April 2026.
The weekly pay cap and the 20-year limit
For statutory redundancy pay your weekly pay is capped at £751 (from 6 April 2026), even if you earn more, and only your most recent 20 years of service count. That makes the maximum statutory payout £22,530 (20 years × 1.5 weeks × £751). Some employers offer enhanced redundancy on top of the statutory minimum — check your contract or the redundancy agreement.
Is redundancy pay taxed?
Statutory redundancy pay is tax-free, and the first £30,000 of any redundancy package (statutory plus enhanced) is also tax-free. Anything above £30,000 is taxed as income. While between jobs you may be able to claim Jobseeker's Allowance or Universal Credit — though large redundancy savings can affect means-tested benefits.
Frequently asked questions
How much redundancy pay will I get?
Statutory redundancy pay is half a week's pay per year worked under 22, one week's pay per year aged 22 to 40, and one and a half weeks' pay per year aged 41 and over. Weekly pay is capped at £751 and only 20 years count.
What is the maximum statutory redundancy pay in 2026?
From 6 April 2026 the maximum statutory redundancy pay is £22,530 — that's 20 years of service, all at the 1.5 weeks rate, using the £751 weekly pay cap.
Is redundancy pay tax-free?
Statutory redundancy pay is tax-free. The first £30,000 of your whole redundancy package, including any enhanced pay your employer adds, is also free of income tax and National Insurance.
How many years count for redundancy pay?
Only your most recent 20 years of continuous service count towards statutory redundancy pay, and you need at least 2 years' service to qualify at all.
Does my actual salary get used or a capped amount?
Statutory redundancy uses your gross weekly pay capped at £751 a week from 6 April 2026. If you earn more, the calculation still uses £751. Employers can pay extra on top voluntarily.