Statutory redundancy pay is the legal minimum an eligible employee receives when made redundant in the UK after at least two years of continuous service. The amount depends on age, length of service and weekly pay. This free calculator applies the official age-banded formula so employers and employees can prepare for redundancy consultations with accurate figures.
How it works
Entitlement is measured in “weeks’ pay”, with each full year of service weighted by the employee’s age during that year:
- 0.5 week’s pay for each full year worked while under 22.
- 1 week’s pay for each full year worked while aged 22 to 40.
- 1.5 weeks’ pay for each full year worked while 41 or older.
Two limits then apply:
- Only the most recent 20 full years of service count.
- Weekly pay is capped at the statutory maximum (700 per week for 2024/25 in Great Britain).
The total redundancy payment is the sum of weeks’ pay multiplied by the capped weekly pay.
Example
An employee aged 45 with 10 full years of service on 600/week: the most recent years were worked while aged 35 to 44. Roughly the years worked while 41 or older earn 1.5 weeks each and the rest earn 1 week each. Multiply the total weeks by the weekly pay (600, under the 700 cap) for the statutory amount. The calculator above does this year-by-year for the exact figure.
Notes
Statutory redundancy pay is tax-free. Contractual schemes may pay more, Northern Ireland uses a different weekly cap, and total termination payments above 30,000 can attract tax. Confirm details with your employer or GOV.UK. Everything runs locally — your figures never leave your browser.