Redundancy Pay Calculator

Last updated: April 2026

Your employment details

Date of birthEmployment start dateEmployment end dateLength of service: 15 years 11 months

Pay input

Weekly gross pay

Average weekly gross pay in the 12 weeks before redundancy.Weekly pay cap

Cap for 2025/26: £700. If your weekly pay exceeds this, only £700 counts.

Statutory redundancy pay

£10,000

Weekly pay used: £500 | Complete service: 15 years

Service summary

Date of birth: 15 Jan 1975
Start of employment: 1 Jun 2010
End of employment: 18 May 2026
Complete years of service: 15 years

Year by year breakdown

Year	Your age	Multiplier	Week's pay	Amount
1	50	x 1.5	£500	£750
2	49	x 1.5	£500	£750
3	48	x 1.5	£500	£750
4	47	x 1.5	£500	£750
5	46	x 1.5	£500	£750
6	45	x 1.5	£500	£750
7	44	x 1.5	£500	£750
8	43	x 1.5	£500	£750
9	42	x 1.5	£500	£750
10	41	x 1.5	£500	£750
11	40	x 1	£500	£500
12	39	x 1	£500	£500
13	38	x 1	£500	£500
14	37	x 1	£500	£500
15	36	x 1	£500	£500
Total				£10,000

Notice pay

Statutory notice entitlement: 12 weeks
Notice pay value: £6,000

You are also entitled to notice or payment in lieu of notice. Your employer cannot deduct this from your redundancy payment; they are separate entitlements.

Minimum total entitlement

Statutory redundancy: £10,000
Statutory notice pay: £6,000
Minimum total: £16,000

Tax treatment

The first £30,000 of your total redundancy package, statutory and enhanced combined, is tax-free. Your statutory redundancy of £10,000 is well within this threshold. Notice pay is taxed separately as normal earnings.

Enhanced redundancy

Statutory pay is the legal minimum. Many employers offer more, so check your employment contract, staff handbook, and consultation documents.

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How is statutory redundancy pay calculated?

Statutory redundancy pay is calculated based on your age, weekly pay capped at £700 in 2025/26, and completed years of service up to 20 years. You receive half a week's pay for each year worked under age 22, one week's pay for each year between 22 and 40, and one and a half week's pay for each year aged 41 or over.

Is redundancy pay taxable?

The first £30,000 of a redundancy payment is tax-free. Above £30,000, the excess is taxed as income through PAYE. Notice pay received as a lump sum is fully taxable.

What if my employer cannot afford to pay redundancy?

If your employer is insolvent and cannot pay statutory redundancy, you can claim from the government's National Insurance Fund through the Insolvency Service. You must apply within 6 months of your employment ending.

Do I qualify if I was on a zero hours contract?

Employees on zero hours contracts can qualify if they meet the 2-year continuous service threshold. Weekly pay is calculated as the average of the 12 weeks worked before redundancy.

What does this mean?

This calculator is designed to help you understand the likely number before you make a decision or start an application.

Your result should be checked against official UK guidance, especially if your circumstances include dependants, exemptions, prior leave, or a complex immigration history.

Treat the figure as a planning tool rather than legal advice. Where the answer affects an application deadline or major payment, speak to an authorised adviser.