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Redundancy Pay Calculator 2026/27: Free UK Estimate

Data last checked on .

Checked against legislation.gov.uk, GOV.UK and Acas. Edited by Steven Butler.

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You will normally be entitled to statutory redundancy pay if you are an employee and you have been working for your current employer for 2 years or more. Enter your age, full years of continuous service and gross weekly pay and this calculator works out roughly what you are entitled to, using the half a week, one week and one and a half week rates for each full year. Your employer might top up the statutory minimum amount, which is called enhanced or contractual redundancy pay.

Key points
  • ✓You get 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 a half week's pay for each full year you were 41 or older.
  • ✓Length of service is capped at 20 years.
  • ✓A week's pay is capped at £751 (2026/27), making the maximum payout £22,530.
  • ✓Your employer might top up the statutory minimum amount, which is called enhanced or contractual redundancy pay.
  • ✓In Northern Ireland, a week's pay for statutory redundancy pay is capped at £783 (2026/27), giving a maximum statutory redundancy payment of £23,490.

Calculate your statutory redundancy pay

The age you'll be on the date your employment actually ends.

Whole years working for this employer. Only complete years count (a maximum of 20).

£

Your average weekly pay before deductions. The statutory calculation caps this at £751 a week.

Estimate only, for England, Scotland and Wales. Your contract may give you more (enhanced redundancy pay). Northern Ireland has a different weekly cap, check nidirect.gov.uk. This tool does not store anything you enter.

How statutory redundancy pay is calculated

You will normally be entitled to statutory redundancy pay if you are an employee and you have been working for your current employer for 2 years or more. You normally need 2 years' continuous employment to qualify for statutory redundancy pay.

For each full year of service you get:

  • 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
  • One and a half week's pay for each full year you were 41 or older
  • Length of service is capped at 20 years

A week's pay is capped at £751 (2026/27), making the maximum payout £22,530. Your weekly pay is the average you earned per week over the 12 weeks before the day you got your redundancy notice. Weekly pay should also include guaranteed overtime agreed in your contract and any contractual bonuses or commission you are entitled to.

Section 162 of the Employment Rights Act 1996 says the amount is worked out by reckoning backwards from the end of your period of continuous employment the number of years of employment, and allowing the appropriate amount for each year. A year counts as one and a half weeks' pay if you were not below the age of forty-one in it, one week's pay if you were not below the age of twenty-two, and half a week's pay otherwise. Where twenty years of employment have been reckoned, no account is taken of any earlier year. If you are on family-related leave when you are made redundant, your redundancy pay is based on your normal contractual weekly pay before tax. It is not based on the pay you have been getting whilst on that leave.

GOV.UK also has a redundancy pay calculator. You will need to know your weekly pay, before tax and other deductions, to use it.

What the calculator does and doesn't include

If you are made redundant, you may get a termination payment. This could include:

  • Yes: Statutory redundancy pay
  • Yes: Holiday pay
  • Yes: Unpaid wages
  • Yes: Company benefits, for example bonuses
  • Yes: Enhanced or contractual redundancy pay, if your employer tops up the statutory minimum
  • Yes: Notice pay, or pay in lieu of notice, which is paid as well as statutory redundancy pay
Statutory redundancy pay under £30,000 is not taxable. What you will pay tax and National Insurance on depends on what is included in your termination payment. Statutory redundancy pay, and most other genuine termination payments, are not taxable up to £30,000. See our redundancy pay and tax guide for how the rest is taxed.

If you don't qualify for statutory redundancy pay

You normally need 2 years' continuous employment to qualify for statutory redundancy pay.

With less than 2 years' service, you may still have:

  • Yes: At least 1 week's notice after 1 month to 2 years of service
  • Yes: Holiday pay and unpaid wages as part of a termination payment
  • Yes: A claim if the redundancy is not genuine, because for a redundancy to be genuine the employer must demonstrate that the employee's job will no longer exist
  • Yes: A claim to the Redundancy Payments Service if your employer is insolvent

The 2 year qualifying period for unfair dismissal does not apply where section 99 applies or where section 105 applies. See our redundancy rights guide and our unfair dismissal guide.

Where to go next

Work
Redundancy Rights
Notice, consultation, fair selection and challenging an unfair redundancy.
Redundancy Pay & Tax
How redundancy payments are taxed and what counts towards the tax-free threshold.
Notice Periods
How much notice you're owed and pay in lieu of notice.
Unfair Dismissal
When a redundancy is actually an unfair dismissal.

Frequently asked questions

How is statutory redundancy pay calculated in 2026?

You get 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 a half week's pay for each full year you were 41 or older. Length of service is capped at 20 years. A week's pay is capped at £751 (2026/27), making the maximum payout £22,530.

How many years do I need to get redundancy pay?

You will normally be entitled to statutory redundancy pay if you are an employee and you have been working for your current employer for 2 years or more. Your employer might top up the statutory minimum amount, which is called enhanced or contractual redundancy pay.

Is statutory redundancy pay taxed?

Statutory redundancy pay under £30,000 is not taxable. What you will pay tax and National Insurance on depends on what is included in your termination payment. An employee pays no National Insurance on a redundancy payment, including on any amount over the £30,000 income tax threshold.

Is the weekly pay capped?

A week's pay is capped at £751 (2026/27), making the maximum payout £22,530.

Does this redundancy calculator work for Northern Ireland?

In Northern Ireland, a week's pay for statutory redundancy pay is capped at £783 (2026/27), giving a maximum statutory redundancy payment of £23,490.

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Know Your Rights UK. "Redundancy Pay Calculator 2026/27: Free UK Estimate." Know Your Rights UK, https://www.knowyourrightsuk.com/employment/redundancy-calculator