Reviewed by Mustafa Bilgic
Founder, WebCalculator
Based on the statutory rules in the Employment Rights Act and GOV.UK guidance. For advice on your situation, contact Acas or Citizens Advice. Estimates only.
Facing redundancy? Work out your statutory entitlement based on your age, length of service and weekly pay. The calculator applies the age-banded multipliers and the statutory weekly pay cap for you.
Statutory minimum · England, Scotland & Wales
Statutory redundancy pay is set by law and depends on three things: your age during each year of service, how long you’ve worked for your employer, and your weekly pay (up to a cap). For each full year of continuous service you receive:
| Age during the year | Pay per year of service |
|---|---|
| Under 22 | ½ week’s pay |
| 22 to 40 | 1 week’s pay |
| 41 and over | 1½ week’s pay |
Two limits apply: service is capped at 20 years, and weekly pay is capped at the statutory maximum of £719. That means the maximum statutory redundancy payment is currently £21,570 (20 years × 1.5 weeks × £719).
A 45-year-old with 12 years’ service earning £600 a week: the calculator counts the years worked at 41+ at 1.5 weeks each and the rest at lower multipliers, based on the age you were during each year. With £600 weekly pay (below the cap), the entitlement comes to a clear, defined figure shown above.
You generally need at least two years of continuous service to receive statutory redundancy pay. You won’t qualify if you’re self-employed, an agency worker, or dismissed for gross misconduct. If your employer is insolvent, you may be able to claim from the government’s Redundancy Payments Service.
Half a week’s pay for each full year worked under 22, one week’s pay for each full year aged 22–40, and one and a half week’s pay for each full year aged 41+. Service is capped at 20 years and weekly pay at £719.
Redundancy payments are tax-free up to £30,000. Amounts above that are taxed as income, as is any contractual pay in lieu of notice.
Employees with at least two years’ continuous service who are genuinely made redundant. Agency workers, the self-employed and those dismissed for misconduct generally do not.
Yes. Many employers offer enhanced or contractual redundancy that exceeds the statutory minimum. Check your contract and any collective agreement — this tool calculates the statutory floor.