Estimate statutory redundancy pay for England, Wales and Scotland under the 2026/27 limits.
Applies to terminations on or after 6 April 2026: a week's pay is capped at £751 and service at 20 years, so the statutory maximum is £22,530. You normally need 2 years' continuous service — the Employment Rights Act 2025 does NOT change that (its reduction to 6 months applies to unfair dismissal claims from 1 January 2027, not to redundancy pay). Up to £30,000 of your TOTAL termination package is tax-free, so statutory redundancy pay alone is always within it. Figures for England, Wales and Scotland; Northern Ireland has its own rates.
The calculation counts up to 20 complete years of service backwards from your current age and applies the statutory age bands to each year.
Weekly pay is capped at £751 for terminations on or after 6 April 2026; contractual redundancy schemes may pay more.
You normally need at least two years of continuous service and must be dismissed by reason of redundancy.
For qualifying terminations from 6 April 2026, the maximum is £22,530 because service is capped at 20 years and weekly pay at £751.
Up to £30,000 of the total qualifying termination package can usually be paid tax-free; other elements may be taxed differently.
Statutory redundancy pay is not a goodwill gesture — it is a legal entitlement with a formula, and the formula is unusual because your age changes the rate for each individual year you worked. For every full year of service you get half a week's pay for years worked under age 22, one week's pay for years worked between 22 and 40, and one and a half weeks' pay for years worked at 41 or over. The calculator above walks backwards through your service year by year, applying the rate for the age you actually were.
Two limits then apply. A week's pay is capped at £751 for redundancies on or after 6 April 2026 (up from £719), and only your last 20 years of service count. Together they set the statutory maximum at £22,530 — 20 years × 1.5 weeks × £751.
Age 45, 10 years' service, £700 a week: the last four years were worked at 41+ (1.5 weeks each) and six at 22–40 (1 week each), giving 12 weeks × £700 = £8,400. Age 30, 5 years, £600: all five years at 22–40 = 5 weeks = £3,000. Age 60, 25 years, £900: service caps at 20 years and pay caps at £751, giving 29.5 weeks × £751 = £22,154.50 — the cap costs this person nearly £4,500 against their actual wage.
No. The statutory sum is a legal minimum calculated from age, service and a week's pay — there is no discretion in it. A dispute over the amount goes to an employment tribunal, and Acas offers free early conciliation first.
Your normal gross weekly wage before tax, as at the calculation date. For variable hours it is averaged over the previous 12 weeks worked. Whatever it comes to, the calculation uses at most £751 of it.
No — redundancy means your job ceased to exist (closure, relocation, reduced headcount). If you were dismissed for conduct or performance, no redundancy pay is due. If a genuine redundancy was not handled properly (no consultation, unfair selection), that is a separate unfair dismissal question.