Redundancy Pay Calculator
Find out exactly what you're entitled to. Enter your details and get your statutory redundancy figure instantly, plus AI-powered analysis of whether you could negotiate more.
Last updated: February 2026
This tool provides estimates based on current UK employment law. It is not legal advice.
How it works
Enter your details
Date of birth, employment start date, and weekly gross pay. Three inputs, nothing else.
Get your statutory figure
Instant calculation based on the legal formula: age bands, years of service, and the current weekly pay cap.
See your full analysis
AI-powered commentary on your specific situation, including typical negotiated ranges and factors that strengthen your position.
What you'll get
Your statutory redundancy pay
£12,400
Plus personalised AI analysis of your specific situation, risk factors, and recommended next steps.
How redundancy pay is calculated in the UK
Statutory redundancy pay in the UK is calculated using a formula set out in the Employment Rights Act 1996. You must have at least 2 years' continuous service with your employer to qualify.
The formula
Your statutory redundancy is based on three factors: age, years of continuous service (capped at 20 years), and weekly gross pay (capped at £700 for 2024/25).
- Under 22: half a week's pay for each full year of service
- 22 to 40: one week's pay for each full year of service
- 41 and over: one and a half weeks' pay for each full year of service
The statutory maximum
The maximum statutory redundancy payment for 2024/25 is £21,000. However, many employers offer enhanced redundancy packages above the statutory minimum, particularly in large-scale redundancy situations.
Tax on redundancy pay
The first £30,000 of redundancy pay is tax-free. Payments above £30,000 are taxed as income. Statutory redundancy pay always falls within this tax-free allowance.
Based on authoritative sources
Frequently Asked Questions
How much redundancy pay am I entitled to?
Your statutory entitlement depends on your age, length of service (up to 20 years), and weekly pay (capped at £700). Use our calculator for your exact figure. Many employers also offer enhanced packages above the statutory minimum.
Do I have to pay tax on redundancy pay?
The first £30,000 of redundancy pay is tax-free. This includes statutory redundancy pay. Any amount above £30,000 is taxed as employment income at your marginal rate.
Can I negotiate more than statutory redundancy?
Yes. Statutory redundancy is the legal minimum. Factors like your length of service, the circumstances of the redundancy, and whether proper process was followed can all strengthen a negotiation. Our AI analysis identifies these factors for your situation.
How long do I have to claim redundancy pay?
You must claim within 6 months of your employment ending. If your employer refuses to pay, you can bring a claim to an employment tribunal. The tribunal deadline is 3 months less 1 day from your last day of employment.
What if my employer goes bust?
If your employer becomes insolvent, you can claim statutory redundancy pay from the Redundancy Payments Service (part of the Insolvency Service). There are caps on what they will pay.
Ready to check your entitlement?
Free, confidential, and takes less than 2 minutes. Get your personalised result with AI analysis.
Calculate Your Redundancy Pay