Statutory Redundancy Calculator
Find out exactly how much statutory redundancy pay you are legally entitled to receive from your employer.
Only full years count (max 20 years applied)
Your normal weekly pay before tax
Statutory Redundancy Pay
£8,400
How we calculated this:
- 4 years at 1.5 weeks' pay (Age 41+)
- 6 years at 1 week's pay (Age 22-40)
* This calculates your minimum legal entitlement (Statutory Redundancy Pay). Your employer contract may offer a more generous redundancy package. Statutory redundancy pay under £30,000 is tax-free.
Your redundancy rights
If you are being made redundant in the UK, your employer must pay you at least the "statutory" minimum amount, provided you have been working for them continuously for at least two years.
The calculation rules
The amount of statutory redundancy pay you receive is heavily dependent on your age and length of service. The exact calculation is:
- 0.5 week's pay for each full year you worked when you were under 22.
- 1 week's pay for each full year you worked when you were between 22 and 40 (inclusive).
- 1.5 week's pay for each full year you worked when you were 41 or older.
The caps and limits
There are two strict legal caps on statutory redundancy:
- Length of service limit: Your redundancy pay is capped at a maximum of 20 years. If you've worked somewhere for 25 years, you only get paid for 20.
- Weekly pay limit: The government caps the maximum "weekly pay" used in the calculation. Currently, this cap is £700. If you earn £1,000 a week, your statutory redundancy is still calculated using £700.
Due to these caps, the absolute maximum statutory redundancy payout you can receive is £21,000.
Note: Your specific employment contract might offer a "contractual redundancy" package that is more generous than the statutory minimum. Check your contract or HR handbook. If your contractual redundancy is higher, your employer must pay the higher amount.
Frequently asked questions
How is statutory redundancy pay calculated?
You receive half a week's pay for each full year you were under 22; one week's pay for each full year you were 22 or older, but under 41; and one and half week's pay for each full year you were 41 or older.
Is redundancy pay taxable?
Statutory redundancy pay is tax-free. In fact, genuine redundancy payments up to £30,000 are completely free of Income Tax and National Insurance.
What is the maximum statutory redundancy pay?
The maximum length of service taken into account is 20 years. Additionally, weekly pay is capped (currently £700). This brings the absolute maximum statutory redundancy payout to £21,000.