Redundancy Pay Calculator 2026/27
What is the legal minimum your employer owes you? Enter your age, years of service and weekly pay to see your statutory redundancy pay — and how the tax-free £30,000 rule treats the whole package. Nothing you enter leaves your browser.
- Rates: GOV.UK — checked 5 Nov 2026
- Tested against HMRC worked examples
- Your salary never leaves your browser
Whole years, capped at 20 for the calculation.
Average gross weekly pay over the 12 weeks before the redundancy notice. Capped at £751 in Great Britain (£783 in Northern Ireland).
Any extra your employer offers above the statutory minimum — it counts towards the same £30,000 tax-free limit.
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Your statutory redundancy pay
—
- Weeks of pay
- —
- Weekly pay used
- —
- Whole package
- —
| Statutory redundancy pay | — |
|---|---|
| Enhanced / ex-gratia | — |
| Total package | — |
| Tax-free (first £30,000) | — |
| Taxable excess | — |
Rates checked 5 November 2026.
Every figure checked against HMRC's own examples.
Your salary never leaves your browser.
Rates re-checked by hand after every Budget.
Rates: GOV.UK — last checked 5 November 2026 See the official rates
How this is calculated
Each year of service earns half a week's pay (under 22), one week's pay (22–40) or one and a half weeks' pay (41+), working backwards from your current age, up to 20 years. Weekly pay is capped at £751 in Great Britain and £783 in Northern Ireland, and the statutory payment is capped at £22,530 (£23,490 in Northern Ireland). The first £30,000 of the whole termination package is tax-free and statutory redundancy pay carries no National Insurance; anything above £30,000 is taxed as income. Pay in lieu of notice is taxed and subject to National Insurance like normal pay. Figures use the 2026/27 rates, last checked against GOV.UK on 5 November 2026. See the full method on How we calculate.
Example — age 45, 10 years' service, £800 a week
| Step | Working |
|---|---|
| Years at 41+ (ages 45–41) | 5 years × 1.5 = 7.5 weeks |
| Years at 22–40 (ages 40–36) | 5 years × 1.0 = 5.0 weeks |
| Total weeks | 12.5 weeks |
| Weekly pay used (capped at £751) | £751.00 |
| Statutory redundancy pay | £9,387.50 |
£9,387.50 is well inside the £30,000 tax-free limit, so the whole statutory payment is tax-free. The maximum statutory payment — 20 years all aged 41+, at the £751 cap — is £22,530.00.
Related calculators & reading
- Redundancy pay: the tax-free £30,000 rule, explained — the full explainer behind this tool.
- Take-home pay calculator — what your next salary is actually worth.
- Statutory Sick Pay calculator — the other statutory payment that protects your income.
- UK tax rates 2026/27 — every band, threshold and allowance behind these figures.
Questions
How is statutory redundancy pay worked out?
Half a week's pay for each year of service under age 22, one week's pay for each year aged 22 to 40, and one and a half weeks' pay for each year aged 41 or over — up to 20 years of service. Your weekly pay is your average over the 12 weeks before redundancy, capped at £751 a week in Great Britain (£783 in Northern Ireland). The maximum statutory payment is £22,530 (£23,490 in Northern Ireland).
Do I qualify for statutory redundancy pay?
You need at least 2 years' continuous service with the same employer. Under 2 years you have no statutory entitlement, though your employer may still offer an enhanced or ex-gratia payment.
Is redundancy pay tax-free?
The first £30,000 of your whole termination package — statutory redundancy pay plus any enhanced or ex-gratia payment — is tax-free, and statutory redundancy pay is not subject to National Insurance. Anything above £30,000 is taxed as income. Pay in lieu of notice (PILON) is different: it is taxed and subject to National Insurance like normal pay.
What is the difference between statutory and enhanced redundancy pay?
Statutory redundancy pay is the legal minimum worked out above. Many employers offer more — an enhanced package, often a set number of weeks per year of service with no cap. This calculator shows the statutory minimum separately so you can see whether an offer beats it, and the £30,000 tax rule applies to the total either way.
Is my information sent anywhere?
No. The calculator runs entirely in your browser. Nothing you enter is sent to a server, stored, or shared.
The rates behind this calculator: 2026/27 rates, sourced from GOV.UK.