Redundancy Calculator — Statutory Redundancy Pay & Notice

One formula, three moving parts. Statutory redundancy pay in Great Britain is worked out from your age, your length of service and your weekly pay — each capped separately — and it’s only one part of what you’re owed when a job ends by redundancy. This calculator also works out your statutory minimum notice, checks the redundancy figure against the £30,000 tax-free threshold for termination payments, and flags that a payment in lieu of notice (PILON) is taxed differently from the redundancy pay itself.

How statutory redundancy pay is calculated

The formula is age-banded weeks’ pay for each full year of continuous service, up to a maximum of 20 years:

• Half a week’s pay for each full year you were under 22.
• One week’s pay for each full year you were 22 to 40.
• One and a half weeks’ pay for each full year you were 41 or over.

This calculator applies the band for your age at dismissal across all your years of service, which is the simplified method most public redundancy calculators use. If your age crossed 22 or 41 partway through your employment, gov.uk’s own calculator apportions the bands year by year and can give a slightly different figure — use it alongside this tool if you were close to either birthday during your service.

“A week’s pay” for this formula is also capped — currently £751 from 6 April 2026, whatever you actually earn. Combine the 20-year service cap with the 1.5-week band and the £751 pay cap and the statutory maximum anyone can receive is £22,530. You need at least 2 years’ continuous service to qualify at all; below that, an employer can still choose to pay something, but there is no statutory entitlement.

Statutory minimum notice is a separate, uncapped figure

Redundancy pay and notice pay are worked out differently. Statutory minimum notice is at least 1 week once you’ve worked between 1 month and 2 years, then 1 week for every full year up to 12 weeks, which is the cap for anyone with 12 or more years’ service. Crucially, the £751 weekly-pay cap that limits redundancy pay does not apply here — notice pay is based on your actual normal week’s pay, however high that is. Many contracts promise more notice than the statutory minimum; you get whichever is longer.

The £30,000 threshold, PILON, and paying more than the minimum

Statutory redundancy pay is tax-free, but only as part of a combined £30,000 allowance that also covers any enhanced or contractual redundancy pay and most other non-cash termination benefits. An employer is always free to pay more than the statutory minimum — never less — and this calculator uses whichever figure is higher. Anything in that combined pot above £30,000 is taxed as income, and the employer separately pays Class 1A National Insurance on the excess. A PILON (payment in lieu of notice) is different again: under the post-employment notice pay rules it is taxed and National-Insurance’d in full, like ordinary wages, and sits outside the £30,000 pot entirely — it doesn’t use up any of the allowance, but it also gets none of it.

If you don’t receive redundancy pay you’re owed, you generally have 6 months from the date of dismissal to bring an employment tribunal claim.

Northern Ireland is different

This calculator covers England, Scotland and Wales. Northern Ireland runs its own statutory redundancy scheme under separate legislation, with its own weekly pay cap set by the Department for the Economy — it does not automatically match the Great Britain figure above, and the current NI figure could not be confirmed from a primary source, so it isn’t guessed here. Check nidirect.gov.uk for the Northern Ireland cap before relying on this tool if you were made redundant there.

Where this fits with the rest of your finances

Redundancy pay and any new salary both feed into your tax position for the year — the income tax calculator and take-home pay calculator show what a new job (or the rest of this one) leaves you after tax once the taxable slice of a termination payment is added in. Going self-employed instead? The self-employed tax calculator covers Class 4 National Insurance and payments on account on the first year’s profit, and the payments on account calculator works out the 31 January and 31 July instalments that can follow.

Redundancy pay, notice and the £30,000 threshold: gov.uk “Redundancy: your rights” (Redundancy pay, Notice periods, Tax and National Insurance pages) and gov.uk “Calculate your redundancy pay”, all legislation.gov.uk Employment Rights Act 1996 ss.86, 155, 162 and 227. PILON/PENP: gov.uk “Termination payments and tax when you leave a job”, ITEPA 2003 s.403. All read 13 Sep 2026. General information, not advice — get advice from ACAS, a solicitor or your union before relying on figures for a settlement negotiation or tribunal claim.