izharshah.com/tools/redundancy-pay-calculator · The Parallel Operator · Redundancy pay calculator · Great Britain, limits checked against GOV.UK 20 September 2026

Redundancy pay: what you are owed

Statutory redundancy pay depends on three things: how long you worked there, how old you were across those years, and your weekly pay. Enter them below. The two caps, £751 a week and £22,530 in total, decide the answer for most people earning above average.

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If you were on maternity, adoption, shared parental or sick leave, enter your full normal contractual pay, not the reduced amount you were actually receiving.

Your statutory redundancy pay
£16,522
22 weeks of pay, tax free
Complete years of service
Years that count (max 20)
Weekly pay used

Limits checked against GOV.UK on 20 September 2026 and apply where the job ends on or after 6 April 2026. Great Britain only. Everything runs in your browser and nothing you type is stored or sent anywhere.

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Your full breakdown

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Year of serviceYour ageRateWeeks

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How this calculator works

Statutory redundancy pay buys you a number of weeks of pay, and the number depends on how old you were during each year you worked there. For every complete year you get half a week if you were under 22, one week from 22 to 40, and a week and a half at 41 or over. Only the most recent 20 years count, so the ceiling is 30 weeks.

Two caps usually decide the answer. A week of pay is capped at £751 however much you actually earn, and the total is capped at £22,530. On a £900 a week salary you lose £149 of every week counted. Both limits come from GOV.UK and apply where the job ends on or after 6 April 2026. Before that date the limits were lower.

You need two complete years to qualify, and the boundary is sharper than it looks. Continuous employment starts on your first day and runs to your last, so two years are complete on the day before the second anniversary. Start on 1 October 2024 and finish on 30 September 2026 and you qualify. Finish a day earlier and you get nothing. This page uses that rule.

If you were dismissed on the spot or paid in lieu of notice, the date used for the sums moves forward by the statutory notice you should have had, up to twelve weeks. That can push you over a service anniversary or a birthday and add a week or more of pay, which is why the tick box is there. It only applies if you got no notice at all, not if you got some but less than you were owed.

Tax: statutory redundancy pay is free of income tax and free of employee National Insurance. If your employer pays more than the statutory minimum and your combined termination package goes over £30,000, income tax applies to the excess, and your employer, not you, pays Class 1A National Insurance on it.

What it does not cover: contractual or enhanced redundancy schemes, pay in lieu of notice, holiday pay owed, Northern Ireland, which has its own higher limits, and any argument about whether the redundancy was genuine. This is the statutory floor, not the whole settlement.

Questions people ask about redundancy pay

How much is redundancy pay?

Half a week's pay for each complete year worked under 22, one week from 22 to 40, and one and a half weeks at 41 or over, up to 20 years. A week's pay is capped at £751 and the total at £22,530 for jobs ending on or after 6 April 2026.

How do I calculate my redundancy pay?

Count your complete years of service, price each at the rate for the age you were during it, then multiply the total weeks by your weekly pay or £751, whichever is lower. The calculator above does it year by year and shows the working.

Do I get redundancy pay after 2 years?

Yes, two complete years is the qualifying threshold. The detail that catches people is that two years are complete the day before the second anniversary, so starting 1 October 2024 and finishing 30 September 2026 does qualify.

Is redundancy pay taxed?

Statutory redundancy pay is free of income tax and free of employee National Insurance. If your employer pays more and the combined package tops £30,000, income tax applies above that, and your employer pays Class 1A National Insurance on the excess rather than you.

Does redundancy pay count 20 years or my whole service?

Only the most recent 20 years count, which is why the maximum is 30 weeks. Longer service does not add more, though it often means more of your counted years fall in the 41-and-over band where each year is worth a week and a half.

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Izhar Shah
Izhar Shah, PhD in Engineering. Research at Imperial College London, a specialist at Jaguar Land Rover, and a business built around the job before leaving on his own terms. He writes The Parallel Operator, a weekly newsletter on income around a job. Not a tax adviser; every figure comes from an official source and is re-checked each April.

Guidance only, not employment or legal advice. This is the statutory minimum; your contract may promise more. If you think you have been underpaid or unfairly selected, talk to Acas before time limits run out.

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