The redundancy pay formula
Under 22: ½ week · 22–40: 1 week · 41+: 1½ weeks per full year (max 20 years)
Example: aged 45 with 10 years' service and £600 a week → 4 years at 41+ (6 weeks) + 6 years at 22–40 (6 weeks) = 12 weeks × £600 = £7,200.
Weeks of pay by age and service
| Age | 2 yrs | 5 yrs | 10 yrs | 15 yrs | 20 yrs |
|---|---|---|---|---|---|
| 30 | 2 | 5 | 9 | 11.5 | – |
| 40 | 2 | 5 | 10 | 15 | 19 |
| 45 | 3 | 7 | 12 | 17 | 22 |
| 50 | 3 | 7.5 | 14.5 | 19.5 | 24.5 |
| 55 | 3 | 7.5 | 15 | 22 | 27 |
| 60 | 3 | 7.5 | 15 | 22.5 | 29.5 |
Multiply the weeks by your weekly pay (max £751). Weekly cap history: £751 from 06/04/2026, £719 from 06/04/2025, £700 from 06/04/2024.
Related
Leaving with holiday left? Work out what you are owed with the holiday entitlement calculator (starters and leavers). To turn your salary into weekly pay, use the hourly to salary calculator. Counting your notice period in working days? Try the working days calculator.
FAQ
How is statutory redundancy pay calculated?
Count your full years of service backwards from the redundancy date, up to 20 years. Each year you were under 22 is worth half a week's pay, each year aged 22 to 40 one week's pay, and each year aged 41 or older one and a half weeks' pay. Multiply the weeks by your weekly pay, capped at £751 for redundancies on or after 6 April 2026.
Who gets statutory redundancy pay?
Employees with at least 2 full years of continuous service with the same employer who are made redundant. Workers, contractors and the self-employed are not entitled, and you can lose it if you unreasonably turn down suitable alternative work.
What is the maximum statutory redundancy pay?
20 years × 1.5 weeks × £751 = £22,530 for redundancies from 6 April 2026. It was £21,570 (cap £719) from 6 April 2025 and £21,000 (cap £700) from 6 April 2024.
Is redundancy pay taxed?
Statutory and contractual redundancy pay is tax-free up to £30,000 in total. Pay in lieu of notice, holiday pay and unpaid wages paid at the same time are taxed as normal pay.
What counts as a week's pay?
Your gross weekly pay before tax. If your hours or pay vary, it is the average over the 12 weeks before you got your redundancy notice. If you were on furlough, it is based on your normal pay, not the reduced furlough pay.
Does this apply in Northern Ireland?
Northern Ireland uses the same age bands and 20-year limit but has its own weekly cap, usually a little higher. This calculator uses the cap for England, Scotland and Wales.
Legal basis and sources
For information only. Your contract or specific circumstances may change the result.