Free HR toolStatutory redundancy pay calculator
Check whether an employee qualifies for statutory redundancy pay and get an estimate of how much, with a clear breakdown. For England, Scotland and Wales, using the rates from 6 April 2026.
Your result
Enter the dates and pay, then press Calculate redundancy pay. You'll see whether they qualify, the amount and a year by year breakdown.
An indication only, for England, Scotland and Wales. Northern Ireland has different rates. Check final figures with your payroll and GOV.UK. Rates are updated by the government every April.
How statutory redundancy pay works
Who qualifies
An employee qualifies once they have worked for you for 2 full years by the date their job ends. If they are short of 2 years, they don't get statutory redundancy pay, although a fair process still matters and their contract may give more.
How it's calculated
Count back from the end date, one full year at a time, up to 20 years. Each year earns half a week's pay if they were under 22 during it, one week's pay if they were 22 to 40, and one and a half weeks' pay if they were 41 or older.
The caps for 2026/27
For redundancies on or after 6 April 2026, weekly pay is capped at £751 and the most anyone can receive is £22,530. For 2025/26 the weekly cap was £719, and for 2024/25 it was £700. This calculator picks the right cap from the end date you enter.
England, Scotland and Wales only
Northern Ireland has its own, higher weekly cap, so please use NI Direct if the employee works there.
What it doesn't include
Notice pay, pay for untaken holiday and any enhanced redundancy pay in the contract are all on top. Our holiday calculator can help with the holiday part.
Redundancy pay FAQs
Who qualifies for statutory redundancy pay?
Employees who have worked for you continuously for at least 2 full years by the date their job ends, and who are being made redundant. Workers who are not employees, such as most contractors, do not qualify.
How is statutory redundancy pay worked out?
Half a week's pay for each full year of service while under 22, one week's pay for each full year aged 22 to 40, and one and a half weeks' pay for each full year aged 41 or over. Only the most recent 20 years count, and weekly pay is capped.
What is the maximum statutory redundancy pay in 2026?
For redundancies on or after 6 April 2026 in England, Scotland and Wales, weekly pay is capped at £751 and the maximum statutory redundancy pay is £22,530. The rates are normally updated every April.
What weekly pay should I use?
Use the employee's average gross weekly pay over the 12 weeks before the date they were given notice of redundancy. If their pay is higher than the cap, the cap is used instead.
The employee is just short of 2 years. Are they eligible?
Possibly. When working out service, the end date can be pushed forward by the statutory minimum notice they are owed, so someone a week or so short may still qualify. Check the dates carefully and take advice if it's close.
Does redundancy pay include notice pay or holiday pay?
No. Notice pay and pay for untaken holiday are separate and paid on top, as is any enhanced redundancy pay in the contract.
Is redundancy pay taxed?
Redundancy payments up to £30,000 are normally free of tax and National Insurance. Notice pay and holiday pay are taxed as normal pay.
Official sources
Results have been checked against the GOV.UK redundancy pay calculator. Rates last checked 13 October 2026.
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