Who is entitled to statutory redundancy pay?

You are entitled to statutory redundancy pay if you have been continuously employed by your employer for at least 2 years, you have been made redundant (not fired for misconduct), and you are an employee (not self-employed, a contractor, or a director without an employment contract).

How is statutory redundancy pay calculated?

Statutory redundancy pay is calculated based on your age, length of service (maximum 20 years), and weekly pay (capped at £700 for 2025/26). You receive: half a week's pay for each year worked under age 22, one week's pay for each year worked aged 22-40, and one and a half week's pay for each year worked aged 41 or over.

Is redundancy pay taxable?

The first £30,000 of redundancy pay is tax-free. Statutory redundancy pay is typically well below this threshold. Any amount above £30,000 is subject to income tax at your marginal rate, but is not subject to National Insurance.

Can I get more than the statutory amount?

Yes. Many employers offer enhanced redundancy pay above the statutory minimum, especially if this is agreed in your employment contract or a collective agreement with a trade union. Always check your contract and negotiate if possible.

What if my employer refuses to pay redundancy?

If your employer refuses to pay statutory redundancy pay, you can make a claim to an Employment Tribunal within 6 months of your employment ending. You can also contact ACAS for advice on resolving the dispute.

CalcHive

UK Redundancy Pay Calculator

Calculate your UK statutory redundancy pay based on your age, years of service, and weekly pay. Uses 2025/26 rates.

Your Age

Complete Years of Service

Gross Weekly Pay (£)

Capped at £700/week

Statutory Redundancy Pay

£2,500

Calculation Breakdown5 weeks

Aged 22-405 years x 1 week

5 weeks

Weekly pay used£500

5 weeks x £500£2,500

Important notes

Statutory redundancy pay is tax-free up to £30,000
You must have been employed for at least 2 years to qualify
Your employer may offer enhanced (above statutory) redundancy pay
Only complete years of service count
Weekly pay is capped at £700 for 2025/26

How to Use UK Redundancy Pay Calculator

Enter your age at the date of redundancy.
Enter your complete years of continuous service (not months, only full years count).
Enter your gross weekly pay (will be capped at £700 for 2025/26).
Your statutory redundancy pay appears instantly, with a full breakdown by age band.

How Statutory Redundancy Pay Works

Statutory redundancy pay is the minimum amount your employer must pay you if you are made redundant. The amount depends on three factors: your age, how long you have worked for your employer (up to 20 years), and your weekly gross pay (capped at £700 for 2025/26).

Age During Year of Service	Weeks Pay Per Year
Under 22	0.5 weeks
22 to 40	1 week
41 or over	1.5 weeks

The maximum statutory redundancy pay in 2025/26 is £21,000 (20 years x 1.5 x £700). The payment is tax-free up to £30,000.

If you are being made redundant, also review your take-home pay and use our Savings Calculator to plan how long your redundancy pay will last.

Frequently Asked Questions

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