What you\u2019re owed if you\u2019re made redundant.
The statutory formula in plain English: age band × years of service × capped weekly pay. See your entitlement broken down year-by-year.
Year-by-year breakdown
| Year of service | Age in that year | Weeks multiplier | Amount |
|---|---|---|---|
| Year 1 | 38 | 1 week | £719 |
| Year 2 | 39 | 1 week | £719 |
| Year 3 | 40 | 1 week | £719 |
| Year 4 | 41 | 1.5 weeks | £1,079 |
| Year 5 | 42 | 1.5 weeks | £1,079 |
| Year 6 | 43 | 1.5 weeks | £1,079 |
| Year 7 | 44 | 1.5 weeks | £1,079 |
| Year 8 | 45 | 1.5 weeks | £1,079 |
Your weekly pay (£850) exceeds the statutory cap of £719/week — calculation uses the cap. Your contract may provide enhanced redundancy on top.
Related tools
What you might calculate next
How it works
Age bands
For each complete year of service: 0.5 week if you were under 22 that year, 1 week aged 22–40, 1.5 weeks if 41 or older. The calculator walks back from your age at dismissal.
Service cap
Only the last 20 years of service count toward statutory redundancy pay — even if you've been there longer.
Weekly pay cap
Your "week's pay" is capped at the statutory limit (£719 from 6 April 2025). Higher earners often receive contractual enhanced redundancy on top.
Tax-free
Statutory and enhanced redundancy pay is tax- and NI-free up to £30,000. Anything above is taxed as normal earnings via PAYE.
Notice & holiday
Statutory notice pay and accrued unused holiday are SEPARATE from redundancy pay. Notice is at least 1 week per year of service (capped at 12 weeks).
When you qualify
You need at least 2 years' continuous service with the same employer. Agency workers, casuals and most contractors don't qualify for statutory redundancy.