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Redundancy Calculator

Estimate statutory redundancy pay from age, weekly pay, years of service, and dismissal date, with year-by-year entitlement rows and the current cap applied. Use it to test different inputs quickly, compare outcomes, and understand the main factors behind the result before moving on to related tools or deeper guidance.

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Topic review: Michael Brennan

Small Business Finance Writer. Assigned as the finance topic reviewer for tax, debt, repayment, payroll, and business-finance calculators.

Reviewed 3 April 2026 Updated 3 April 2026 View reviewer profile Contact editorial team
UK statutory redundancy pay estimate Estimate statutory redundancy pay from age, complete years of service, weekly pay, and dismissal timing, then inspect the age-band multipliers used for each qualifying year.

This page is scoped to statutory redundancy pay under current Great Britain rules. It does not estimate notice pay, enhanced employer severance, settlement terms, tax treatment, or benefit entitlement after redundancy.

Estimated statutory redundancy pay

£8,987.50

Based on 10 qualifying years, a capped weekly pay of £719.00, and 12.5 weeks of statutory entitlement under 2025/26 rules.

Weekly pay used
£719.00
Weeks of entitlement
12.5
Service years counted
10
Weekly pay entered
£800.00

Year-by-year entitlement sheet

Each row applies the statutory age multiplier to the capped weekly pay for one complete year of service, working backwards from the dismissal age.

Service yearAge bandMultiplierWeekly pay usedPayout
Year 141 and over (age 45)1.5 weeks£719.00£1,078.50
Year 241 and over (age 44)1.5 weeks£719.00£1,078.50
Year 341 and over (age 43)1.5 weeks£719.00£1,078.50
Year 441 and over (age 42)1.5 weeks£719.00£1,078.50
Year 541 and over (age 41)1.5 weeks£719.00£1,078.50
Year 622 to 40 (age 40)1 weeks£719.00£719.00
Year 722 to 40 (age 39)1 weeks£719.00£719.00
Year 822 to 40 (age 38)1 weeks£719.00£719.00
Year 922 to 40 (age 37)1 weeks£719.00£719.00
Year 1022 to 40 (age 36)1 weeks£719.00£719.00
Statutory total12.5 weeks£8,987.50
Scope Uses the current Great Britain statutory weekly-pay cap and age-band formula only. Employer-enhanced packages, notice pay, tax treatment, and Northern Ireland-specific rules are outside scope.
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Redundancy Pay

Redundancy calculator guide: statutory redundancy pay, age bands, weekly-pay cap

A redundancy calculator should separate statutory redundancy pay from every other payment that may arise when employment ends. This page estimates current Great Britain statutory redundancy pay from age, complete years of service, weekly pay, and dismissal timing, then shows the year-by-year age-band multipliers and the effect of the statutory weekly-pay cap.

What this redundancy calculator includes

This page is limited to statutory redundancy pay. It estimates the baseline legal entitlement from age at dismissal, complete years of continuous service, and weekly pay, then applies the current statutory weekly-pay cap and the current age-band multipliers to each qualifying year of service. That gives the user a transparent statutory figure instead of a vague severance estimate.

That narrow scope matters because redundancy situations often include other money that is not statutory redundancy pay at all. Notice pay, outstanding holiday pay, employer-enhanced severance schemes, tax treatment, settlement terms, and benefit eligibility can all matter financially, but they are different questions from the statutory calculation itself. A trustworthy first-release calculator should not blur those categories together.

The result therefore answers one core question only: what is the current statutory redundancy pay baseline under Great Britain rules if the worker qualifies. If the worker has less than two years of service, the page shows that the statutory redundancy entitlement is normally zero under the standard rule set.

How statutory redundancy pay is calculated

The formula works backwards through complete years of service and assigns a multiplier to each year according to the worker's age during that year. A qualifying year when the worker was under 22 counts as half a week's pay, a qualifying year from age 22 to 40 counts as one week's pay, and a qualifying year from age 41 onward counts as one and a half weeks' pay.

Two statutory caps matter. First, the worker normally needs at least two years of continuous service to qualify for statutory redundancy pay. Second, the calculation uses no more than 20 years of service even if actual service is longer. Weekly pay is also capped at the current statutory maximum, so a higher actual weekly wage does not increase the statutory redundancy figure once that cap has been reached.

That is why the year-by-year sheet is so useful. It shows which service years are being counted, which age band each year falls into, and how the capped weekly pay is being multiplied. Instead of one opaque lump sum, the user can see the statutory logic line by line.

Statutory redundancy pay = sum of (age-band multiplier × capped weekly pay) for each qualifying full year of service

Each qualifying year of service is valued using the statutory age band and the current capped weekly pay rather than the uncapped weekly wage.

Weeks entitlement = 0.5, 1, or 1.5 per qualifying year depending on age band

Years under 22 count as half a week, years from 22 to 40 count as one week, and years from 41 onward count as one and a half weeks.

Service years counted = min(full years of service, 20)

The statutory calculation uses no more than 20 complete years of service even if actual service is longer.

Worked example: how the weekly-pay cap changes the answer

Suppose the worker is 45 at dismissal, has 10 complete years of service, and actual weekly pay is 800. The page applies the current statutory weekly-pay cap first, so the statutory calculation uses the capped figure rather than the full 800. It then walks backwards through the 10 service years, assigning one-and-a-half weeks for the years at age 41 and above and one week for the earlier years between 22 and 40.

That produces a total weeks entitlement figure and then converts it into a statutory redundancy amount using the capped weekly pay. This makes the legal cap visible in a way many rough severance calculators do not. A high earner may have a much larger actual weekly wage, but statutory redundancy still uses the cap unless the employer is paying an enhanced package outside the statutory baseline.

The same breakdown is useful for users close to the age-band edges. A worker with service spanning ages 40 and 41 can see that later qualifying years count more heavily than earlier ones, while a worker with less than two years of service can see immediately why statutory redundancy pay is not triggered under the standard rule.

What this redundancy estimate does not cover

This page does not estimate notice pay, holiday pay, enhanced employer severance, tax treatment, tribunal issues, unfair-dismissal questions, consultation rights, or benefit entitlement after redundancy. Those may matter as much as the statutory redundancy calculation itself, but they need separate legal or payroll treatment.

It also does not model Northern Ireland-specific rules. The scope here is current Great Britain statutory redundancy pay planning. If the dismissal involves a complex contract, a negotiated package, or a jurisdiction outside Great Britain, treat the result as a baseline reference and confirm the actual position with current official guidance or professional advice.

Further reading

Frequently asked questions

Does this redundancy calculator include notice pay or holiday pay?

No. This page estimates statutory redundancy pay only. Notice pay, accrued holiday pay, employer-enhanced severance, and any tax treatment are separate employment or payroll questions and are not folded into the statutory redundancy result here.

Why is my actual weekly pay not fully used in the calculation?

Because statutory redundancy pay uses a legal weekly-pay cap. If actual weekly earnings are above that cap, the statutory calculation still uses only the capped figure. That is why the result sheet shows both the weekly pay entered and the weekly pay actually used in the statutory formula.

Why does age matter in statutory redundancy pay?

Because the statutory formula values each complete year of service differently depending on age. Years under 22 count as half a week's pay, years from 22 to 40 count as one week's pay, and years from 41 onward count as one and a half weeks' pay. The year-by-year sheet is there so the user can see that weighting directly.

Does this page cover Northern Ireland redundancy rules?

No. This version is scoped to current Great Britain statutory redundancy pay. If the employment is under Northern Ireland rules or the employer is offering an enhanced package, use this result as a baseline only and confirm the actual position with the relevant official guidance or a qualified adviser.

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