Redundancy Calculator: Work Out Your Statutory Redundancy Pay
Facing redundancy can be stressful, and it’s normal to have questions about what you’re entitled to. Our calculator gives you a quick, accurate estimate of your statutory redundancy pay, based on the latest Government figures.
Use the calculator as a guide only, and read on to understand how redundancy pay is worked out and why you might want to get expert advice from redundancy expert David Greenhalgh.
Find out how much you could be entitled to
You need more than 2 years of employment before you will be entitled to statutory redundancy pay if your role is made redundant.
The calculator works automatically by using your age, length of service, and weekly pay, so you can see what your statutory entitlement is. Keep in mind, many employees may offer enhanced redundancy pay (for examples 2 weeks pay per year of service) and that in addition you will be entitled to your notice (which your employer can make you work or pay it in lieu as a lump sum), holiday pay, these elements are not included in the statutory calculation figure.
Use the calculator as a guide only, and read on to understand how redundancy pay is worked out and why you might want to get expert advice from redundancy expert David Greenhalgh.
How the Calculator Works
Based on the information provided, the calculator calculates your statutory redundancy pay.
Age
The calculator automatically applies the correct multiplier based on your age.
Length of continuous service
The calculation is based on your full years of service, capped at a maximum of 20 years. Continuous service is uninterrupted employment with the same employer, i.e., even if your role or job title changed.
Weekly pay
This is your gross weekly earnings capped out at the statutory maximum. Weekly pay is typically calculated by taking the average of your 12-week gross earnings up to the point you were given your redundancy notice.
If you were paid less than usual during that period because of statutory sick pay or family leave (such as maternity, paternity, adoption or shared parental leave), the calculation should be made on your normal pay before you went on leave, i.e. not on what you actually received during such leave. This is an easy place to mess up your calculations.
Optional contractual enhancements
If your employer offers enhanced redundancy pay you will likely get a stated number of weeks pay per year of employment and this will be capped out at a stated number of years service.
Redundancy Pay Calculator
Use this calculator to estimate your statutory redundancy pay based on your age, years of service, and weekly pay.
Current Weekly Pay Cap
Max Statutory Redundancy Pay
Maximum Yearly Length Of Service Capped
Tax-Free Redundancy Limit
Statutory Redundancy Formula Explained
Statutory redundancy pay is worked out using an easy-to-understand framework as provided by the government:
- 0.5 week’s pay for each full year of service when you were under 22
- 1 week’s pay for each full year of service, aged 22 to 40
- 1.5 week’s pay for each full year of service, aged 41 or over
There are also statutory limits in place:
- Weekly pay cap:
-
- Current: £719 (for redundancies up to 5 April 2026)
- Projected: £746 (estimated for redundancies from 6 April 2026)*
- Maximum statutory redundancy pay:
-
- Current: £21,570 (until 5 April 2026)
- Projected: £22,380 (estimated from 6 April 2026)*
- Maximum years of service: 20 years
*Note: Official rates for the 2026/27 tax year are typically announced by the Government each March.
Worked example (simplified):
An employee aged 45 who has been earning £800 a week and has been employed for 12 years.
- Weekly pay is capped at £719
- Total qualifying weeks = 14
- Statutory redundancy pay = 14 × £719 = £10,066
This calculation is done automatically by our calculator; there is no need for you to do any manual calculations.
Do You Qualify for Statutory Redundancy Pay?
You are generally eligible if:
- You’re an employee (not a worker, contractor or freelancer)
- You have at least two years of continuous service with your employer
- You are being dismissed because your role is genuinely redundant
You are not eligible if you are:
- Self-employed
- A member of the armed forces
- Certain Crown servants or domestic staff
- Dismissed for misconduct
If you are not sure whether you qualify, David can explain this to you quickly and clearly.
Understanding Your Results
The amount you see when you run our calculator is your statutory redundancy pay. It’s the minimum legal amount your employer is required to pay, assuming that you are eligible i.e. you need more than 2 years employment to be entitled to statutory redundancy pay..
It does not cover additional payments that are commonly owed on redundancy, for example:
- Notice pay (or pay in lieu of notice)
- Accrued but untaken holiday pay
- Bonuses or commission (depending on wording of scheme rules)
- Enhanced or contractual redundancy schemes
Often, employers get redundancy pay wrong, particularly when they calculate continuous service or average weekly pay, or when they exclude regular contractual bonuses.
For instance, your statutory redundancy could be £10,066, but your total entitlement could be much more when notice pay and holiday pay are taken into account. Often, statutory redundancy is only part of what an employee is due on redundancy.
If something doesn’t seem right, it’s worth getting a check before accepting the figure offered.
Additional Payments You May Be Entitled To
This is where redundancy outcomes often change significantly.
1. Notice Pay
Pay in lieu of notice is frequently a valuable aspect of a redundancy package. You may be owed much, much more than your minimum statutory notice by way of notice under your contract. If your employer doesn't make you work your notice period and instead pays you, this is called PILON (pay in lieu of notice). Your contract will say whether you get basic salary only when you get a payment in lieu and in the absence of such wording you should argue for all the extra you would have got had you worked your notice (including but not limited to employer pension contributions).
2. Untaken Holiday Pay
Any holiday you have not taken but which has built up at the time your employment ends must always be paid. This should include any agree carry over from the last holiday year. Payment of holiday pay is a legal requirement and cannot be withheld by your employer.
3. Bonuses, Commission, and Regular Overtime
If bonuses, commissions, and/or overtime are contractual you may be able to argue for them on exit. These are frequently neglected or excluded by employers.
4. Enhanced or Contractually Enhanced Redundancy
Some employers pay enhanced redundancy pay which will be in excess of statutory pay. These payments are in addition to statutory redundancy pay and can significantly increase the total value of the exit, particularly where you have been with the employer for many years. Very rarely entitlement to enhanced redundancy pay will be included in the employment contract. If there is no mention of enhanced redundancy pay in your contract, you should still receive the same if this is generally offered by your employer
5. Unfair or Incorrect Redundancy
Things like sham redundancies, poor consultation, or unfair selection and discrimination often lead to negotiations for enhanced exit packages under settlement agreements.
Employers who don’t consult properly about large-scale redundancies (20 or more employees) will from April 2026 will have to pay each impacted employee for up to 180 days’ full pay, with the current cap being doubled.
Tax Treatment of Redundancy Pay
The first £30,000 of statutory redundancy pay is tax-free.
But it’s worth noting that only redundancy pay counts towards this allowance. The following are all taxed as ordinary income:
- Notice pay or PILON
- Holiday pay
- Bonuses and commission
Where the enhanced redundancy payment results in your total redundancy pay exceeding £30,000, the excess will be subject to tax.
Common Mistakes Employees Make
- Going along with the redundancy process - if advice is taken early on steps may be taken to delay the process and negotiate exit terms.
- Miscounting their continuous service
- Not pushing for bonuses/commission
- Not pushing back for enhanced redundancy terms where they think the redundancy is a sham
- Taking statutory redundancy when the redundancy is unfair
- Not questioning their selection or their redundancy scoring
Getting advice before or as soon as the redundancy process starts is key and will give you the best chance of securing an enhanced redundancy exit package.
When to Speak to a Redundancy Solicitor
It’s a good idea to get advice if:
- If you see the redundancy coming and you think it is a sham to get you out
- If others have the same job title as you and they have not been put at risk
- If there is history or you having been mistreated or discriminated against
- If you are pregnant, on maternity leave or returning from maternity leave
- The redundancy feels rushed or unfair
- You think the calculation is wrong
- You’re being asked to sign a settlement agreement
- Your employer refuses to pay notice or holiday pay
Getting advice as early as possible matters and can be the difference between a bad outcome and can help protect your position before any decisions are final. David also helps lots of employees who seek advice at a later stage, including during consultation and following their dismissal.
FAQs
Case Studies - London Settlement Agreements
David regularly achieves fantastic outcomes for his settlement agreement clients:
Significant increases in ex-gratia payments
Confidentiality around settlement and background
Increase in payment in lieu of notice payment to include employer pension contributions and benefits
Negotiating positive leaving statements/references, reducing risk of reputation damage
Payment of bonuses – where bonus rules state no bonus due
Agreeing the removal/reduction of non-compete restrictions
Securing beneficial treatment of share options/LTIPs that would otherwise have been lost, including vesting on a pro-rata basis
Negotiating extension of medical cover to allow the employee to continue having essential medical treatment post termination of employment
Receiving redundancy is stressful enough without being unsure of your rights. If you don’t know whether the redundancy pay you’re being offered is right, whether you can go for more or if something just seems off, David can help you find out where you stand and what to do next.
I was already happy with the settlement agreement terms I had been offered but only had limited time to accept. David provided a fast turnaround service which enabled me to get same day advice and sign off.
The Invaluable advice I got from David on my settlement agreement helped me feel in control. He negotiated me a far better deal than was offered to me originally.
David held my hand throughout a very messy exit and with his help I left with a large pay out under my settlement agreement to see me through to my next role.
David was great on tactics. He helped me prepare for my redundancy consultation meeting which resulted in me being offered a decent settlement agreement exit package.
Exit Guides for Employees
Employee Legal Guides
Useful employment law guides for employees from David Greenhalgh.