Statutory Redundancy Pay Calculator
Estimate your legal minimum redundancy entitlement based on UK 2025/26 government standards. Simply enter your employment details below to calculate your package including age-based multipliers and current weekly pay caps.
*Note: Statutory redundancy pay up to £30,000 is tax-free. Maximum weekly pay capped at £719 for 2025/26.
Comprehensive Guide to Statutory Redundancy Pay (2025/26)
Redundancy is a challenging transition for any professional. Understanding your financial rights is the first step toward security. In the United Kingdom, statutory redundancy pay is the legal minimum your employer must pay you if you are being made redundant, provided you meet specific eligibility criteria.
How Redundancy Pay is Calculated
The calculation is not a flat rate; it is a weighted formula that considers three primary factors: your age, your length of service, and your weekly pay. The UK government updates these limits annually. For the 2025/2026 period, the maximum weekly pay considered is £719.
The Age-Based Multiplier System
The statutory system rewards longer service and recognizes that older workers may face different challenges in the job market. The multipliers are as follows:
- Under 22 years old: Half a week’s pay for each full year of service.
- 22 to 40 years old: One full week’s pay for each full year of service.
- 41 years old and older: One and a half weeks’ pay for each full year of service.
Key Eligibility Requirements
To qualify for a statutory payment, you must have been working for your employer for at least **two continuous years**. If you have been there for 1 year and 11 months, you generally do not qualify for the statutory minimum, though your contract might offer a private arrangement.
Caps and Limits
There are two major caps you must be aware of. First, the length of service is capped at **20 years**. Even if you have worked for a company for 30 years, only the most recent 20 are used in the calculation. Second, the total statutory redundancy pay is capped at **£21,570** for the current year.
Tax Implications
One of the few silver linings in a redundancy situation is the tax treatment. Statutory redundancy payments are tax-free up to **£30,000**. This includes any non-statutory redundancy pay your employer might add on top (contractual pay). However, other elements of a "termination package," such as pay in lieu of notice or holiday pay, are taxed as normal income.