Redundancy pay calculator
The minimum redundancy pay the law requires after two or more years with the same employer. Your contract can give you more than this.
| Years counted (max 20) | 12 |
| Years aged 41 or over × 1.5 weeks | 4 |
| Years aged 22 to 40 × 1 week | 8 |
| Years under 22 × 0.5 week | 0 |
| Weekly pay used | £700.00 |
| Redundancy pay | £9,800.00 |
| Tax-free part (first £30,000) | £9,800.00 |
How statutory redundancy pay is calculated
For each full year of service, counting back from the date you were made redundant, you get:
- half a week's pay for each year you were under 22
- one week's pay for each year you were 22 to 40
- one and a half weeks' pay for each year you were 41 or older
Only the last 20 years count, and a week's pay is capped at £751 for redundancies on or after 6 April 2026. The most anyone can get is £22,530.
Examples
| Age | Years | Weekly pay | Redundancy pay |
|---|---|---|---|
| 30 | 5 | £600 | £3,000.00 |
| 45 | 12 | £700 | £9,800.00 |
| 55 | 20 | £900 | £20,277.00 |
| 24 | 3 | £450 | £1,125.00 |
Tax on redundancy pay
The first £30,000 of redundancy pay and other termination payments is free of income tax and National Insurance. Holiday pay, notice pay and wages you are still owed are taxed as normal.
What counts as a week's pay
If your hours do not vary, a week's pay is what you are paid for a normal week. If they do, it is your average over the 12 weeks before you were given notice. Overtime counts only if your contract requires it. The £751 cap applies before the multiplier, so anyone earning more gets the same statutory amount as someone on £751.
Questions
Do I get redundancy pay with less than 2 years of service?
Not statutory pay. You still get notice pay, holiday pay and any contractual redundancy pay.
What is the maximum statutory redundancy pay in 2026–27?
£22,530: 20 years × 1.5 weeks × £751.
Is redundancy pay taxed?
Not up to £30,000. Anything above that is taxed as income but has no employee National Insurance.
Is the cap different in Northern Ireland?
Yes. Northern Ireland sets its own weekly limit, so use this calculator as a guide there.
Sources
Checked 28 September 2026. OneCalcs is independent and not affiliated with HMRC or any government department.