Statutory redundancy pay calculator (UK)
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Statutory redundancy pay is a legal minimum. It is based on your age in each year of service, your full years with the employer (max 20) and a weekly pay cap (£719 from 6 April 2025). Your contract may give more — many do.
- Statutory redundancy pay
- £9,100
- Weeks awarded
- 14.0
- Taxable portion
- £0 (tax-free)
| Years counted (max 20) | 12 |
|---|---|
| Weekly pay used (capped at £719) | £650 |
| Years aged under 22 (× 0.5 weeks) | 0.0 weeks |
| Years aged 22–40 (× 1 week) | 8.0 weeks |
| Years aged 41+ (× 1.5 weeks) | 6.0 weeks |
| Total weeks | 14.0 |
| Statutory pay (tax-free up to £30,000) | £9,100 |
Your contract may give you more than the statutory minimum — many employers do. The first £30,000 of a redundancy payment is free of Income Tax and free of employee National Insurance. Any excess is subject to Income Tax through PAYE but is still free of employee National Insurance — employers pay Class 1A NIC on the excess. The weekly cap of £719 applies from 6 April 2025 and is reviewed each April. You need at least two years of continuous service to qualify for statutory redundancy pay (see gov.uk/calculate-your-redundancy-pay).
Official rates & thresholds used
United Kingdom · tax year 2026/27 · last verified . These figures match the parameters embedded in this calculator.
| Parameter | Value | Notes |
|---|---|---|
| Statutory redundancy pay — weekly cap | £719 / week | From 6 April 2025. Service cap is 20 years. |
| Maximum qualifying years | 20 | Statutory redundancy pay service cap. |
| Tax-free redundancy lump sum | £30,000 | — |
Primary sources: gov.uk; HMRC. Always confirm live figures on gov.uk before acting.
How it works
- We walk back through your full years of service. For each year you were under 22 you get 0.5 weeks' pay, 22–40 gets 1 week, and 41+ gets 1.5 weeks.
- Service is capped at 20 years and weekly pay at £719 — so the statutory maximum is 30 weeks × £719 = £21,570.
- The first £30,000 of a redundancy payment is free of Income Tax and free of employee National Insurance. Any excess is subject to Income Tax through PAYE but remains free of employee NI — employers pay Class 1A NIC on the excess.
Common questions
- Does notice pay count towards the £30,000?
- Notice pay (or pay in lieu of notice) is taxable in full and does not share the £30,000 tax-free allowance. Only the redundancy element itself qualifies.
- What if I am offered another job in the company?
- If your employer offers a 'suitable alternative role' and you unreasonably refuse, you can lose your right to statutory redundancy pay. You also have a 4-week trial period in the new role.
- How long does my employer have to pay me?
- There is no fixed legal deadline but it should normally be on or soon after your final pay date. If they fail to pay, you can claim from the Insolvency Service if the company is insolvent, or apply to an employment tribunal within 6 months.