Redundancy Pay Calculator

The Redundancy Pay calculator works out your UK statutory redundancy entitlement using age, complete years of continuous service and your gross weekly pay (capped at £719 per week from 6 April 2025). The formula gives half a week's pay per year worked under age 22, one week per year aged 22-40, and one and a half weeks per year aged 41 or over, up to a maximum of 20 years counted. The headline maximum statutory payout is therefore £21,570 (20 × 1.5 × £719) for an employee aged 41+ throughout service. The first £30,000 of any genuine redundancy payment — combining statutory and any contractual enhanced ex-gratia element — is tax-free. Amounts above £30,000 are taxable as employment income but escape National Insurance. PILON, accrued holiday pay and contractual bonuses are fully taxable and do not share the £30,000 exemption. Employer NI of 15% (from April 2025) is also payable above £30,000. This calculator is for employees facing redundancy who want to verify the figure their employer has offered, HR teams modelling restructure costs, and union representatives sense-checking settlement agreements. It is also helpful for accidental founders or directors needing to understand the cap on statutory pay when winding down a business — the Insolvency Service's Redundancy Payments Service pays statutory amounts if the employer is insolvent. What the calculator does NOT include: contractual enhanced redundancy schemes (often calculated without the £719 cap, or with extra weeks), PILON, garden leave, accrued holiday, share-vesting acceleration, pension top-ups, legal-fee contributions, or restrictive-covenant payments. It also assumes at least two years' continuous service — the minimum to qualify for statutory redundancy. Regional notes: statutory redundancy is UK-wide via the Employment Rights Act 1996 with identical rates and rules across England, Scotland, Wales and Northern Ireland. Pair with the Notice Period calculator, Take-Home Pay calculator and Benefit Entitlement checker to model your full position post-redundancy.