Redundancy Pay Calculator
Work out your UK statutory redundancy pay based on age and length of service, plus the tax treatment of any additional payment your employer offers.
About you
Your age on the date your employment ends.
Full years of continuous employment (only the most recent 20 years count).
Capped at £719 for the statutory calculation.
Payment & Tax
Any contractual or enhanced redundancy payment on top of the statutory minimum.
Used to estimate tax on amounts above the £30,000 tax-free allowance.
Tax-Free Amount
£13,700.00
Taxable Amount
£0.00
Understanding the terms
- Statutory redundancy pay: The legal minimum, based on age, length of service, and a capped weekly pay figure. Each full year of service earns 0.5, 1, or 1.5 week's pay depending on your age during that year.
- Weekly pay cap: Even if you earn more, the statutory formula only uses pay up to the current statutory maximum.
- Tax-free allowance: The first £30,000 of a genuine redundancy payment (statutory plus any ex-gratia element) is free of income tax and National Insurance.
Frequently asked questions
Who is entitled to statutory redundancy pay?
You're entitled to statutory redundancy pay if you've been continuously employed by the same employer for at least 2 years and you're being made redundant (your role is genuinely no longer needed).
Is redundancy pay taxed?
The first £30,000 of a genuine redundancy payment is free of income tax and National Insurance. Any amount above £30,000 is taxed as income at your marginal rate.
Is there a maximum statutory redundancy payment?
Yes. The statutory formula caps the weekly pay used in the calculation, and only counts a maximum of 20 years of service, so there's an overall cap on the statutory amount regardless of how long you've worked there.