Redundancy Pay Calculator

Estimate the gross UK statutory formula for a redundancy date on or after 6 April 2026, with separate England/Wales/Scotland and Northern Ireland weekly-pay caps. No tax or take-home estimate.

About this calculator

Estimate the gross UK statutory redundancy formula for a date from 6 April 2026, using age, complete service years and a selected Great Britain or Northern Ireland weekly-pay cap. The page does not estimate tax or take-home pay and does not determine entitlement.

Enter annual salary, age at the relevant date, complete continuous-service years, a chosen employer-enhancement multiplier, estimated PILON months and an untaken-holiday amount. Annual salary divided by 52 is only a proxy: official weekly pay is based on the relevant statutory method, which can include regular overtime, bonuses or commission. PILON uses a simplified salary-based assumption.

The model counts up to 20 complete years in the statutory age bands and applies a £751 weekly cap in England, Wales and Scotland or a £783 cap in Northern Ireland for redundancies from 6 April 2026. It shows gross components and a simplified qualifying termination-payment classification against the combined £30,000 exemption. Prior termination payments, contract terms, employee status, legal eligibility, tax residence, payroll, tax and benefits are not checked. Reviewed 1 October 2026.

Illustrative starting scenario: Editable sample: £50,000 annual salary proxy, age 40, 10 completed service years, 1× statutory multiplier, 1 month assumed PILON and £1,500 holiday-pay input. Replace these values with your own records before relying on the estimate.

Estimated statutory redundancy pay

£7,510

Illustrative gross package including entered assumptions: £13,173

This estimates the statutory formula for a redundancy date on or after 6 April 2026. The weekly cap is £751 for England, Wales and Scotland. Annual salary divided by 52 is only a proxy for weekly pay; the official method uses your relevant weekly pay. This does not estimate tax, National Insurance or take-home pay.

Gross package components

Each bar is an entered or modeled gross component; totals exclude any other pay or benefits.

Gross package components and total (£; rounded to whole pounds)
Measure	Amount
Statutory redundancy	£7,510
Enhanced top-up assumption	£0
PILON assumption	£4,163
Untaken holiday pay input	£1,500
Total gross package	£13,173

Statutory award by age band

Weekly-pay contributions by complete service year and age band; modeled capped weekly pay is £751.

Age-band contributions are shown to pennies; the total statutory award rounds their sum to whole pounds.
Measure	Complete service years	Award amount (£)
Under 22 (0.5 week per full year)	0	£0.00
Age 22–40 (1 week per full year)	10	£7,510.00
Age 41+ (1.5 weeks per full year)	0	£0.00
Total statutory award (whole pounds)	£7,510

Potentially exempt and taxable classification

Model classification only: qualifying statutory/enhanced termination payments share the £30,000 exemption; entered PILON and holiday pay are treated as taxable earnings.

Model-only payment classification (£; not a payroll determination)
Measure	Amount
Potentially exempt qualifying statutory/enhanced amount	£7,510
PILON, holiday pay and any modeled amount above exemption	£5,663

This is not an entitlement, contract, tax or payroll decision. Statutory entitlement depends on employee status, the legal redundancy reason, continuous-service rules and the relevant date. Enhanced terms and tax treatment depend on your agreement and any other termination payments. Check your employer’s written calculation and the official sources below before relying on an amount.

UK statutory formula comparison for 2026/27. URL inputs take precedence; no account-saved assumptions are supported because salary and redundancy amounts are sensitive.

Copied links include the salary and package assumptions in the address. Share them only if you are comfortable disclosing those figures.

Where is your employment based for statutory redundancy rules?The weekly-pay cap and treatment of service before age 18 differ. This choice does not calculate regional Income Tax.

Annual gross salary (£; weekly pay is approximated as salary ÷ 52)

£0 to £5,000,000. Weekly-pay method and reference date may differ.

Age at the relevant redundancy date (years)

Complete continuous-service years

The formula counts up to 20 complete years. Periods of employment before age 18 do not count.

Employer-enhanced multiplier (×)

Pilon months (assumption)

The estimate converts months to 4.33 weeks using salary ÷ 52; your notice entitlement and actual PILON are not assessed.

Untaken holiday pay (£; entered estimate)

£0 to £5,000,000. Holiday pay is treated separately from qualifying redundancy pay.

UK redundancy pay FAQs

How is statutory redundancy pay calculated in the UK in 2026/27?

For an eligible employee, the statutory formula uses half a week’s pay for each complete year under age 22, one week’s pay for each complete year from age 22 to 40, and one and a half weeks’ pay for each complete year aged 41 or over. The calculation counts no more than 20 years and uses the statutory weekly-pay cap in force on the redundancy date. GOV.UK bases weekly pay on the employee’s average weekly pay over the relevant 12-week period; this calculator uses annual salary divided by 52 as a simplified input assumption.

What statutory weekly-pay cap applies in 2026/27?

For redundancies from 6 April 2026, the cap is £751 in England, Wales and Scotland and £783 in Northern Ireland. Earlier redundancy dates can use earlier caps. Select the correct jurisdiction; this calculator does not accept an earlier date or select a historic cap.

Who is usually eligible for statutory redundancy pay?

You will usually need to be an employee with at least 2 years of continuous service and to have been made redundant, subject to the statutory conditions. Some situations, including temporary lay-off, insolvency and employment status, have specific rules that this calculator does not verify.

How many years of service count for UK redundancy pay?

The statutory calculation uses complete years of service and counts a maximum of 20 years. In England, Wales and Scotland, service before age 18 does not count; Northern Ireland has a different age-entitlement rule and says there is no lower age limit. You will normally need at least 2 complete years to qualify. The age band for each year matters, so the result can differ when a person crosses age 22 or 41 during their service. This calculator uses a simplified complete-years input.

Is UK statutory redundancy pay tax-free?

Statutory redundancy and qualifying enhanced termination payments usually share a combined £30,000 tax exemption. Amounts above the combined exemption can be taxable. The exemption does not automatically cover wages, holiday pay or pay for a notice period, and earlier termination payments can affect the available amount.

Is PILON taxable in the UK?

Usually, yes. Pay in lieu of notice, or the post-employment notice pay amount, is generally treated as taxable earnings and can be subject to employee National Insurance. It does not simply use the £30,000 termination-payment exemption. This calculator includes an assumed gross PILON amount but does not estimate its tax or National Insurance; use the employer’s payroll calculation.

Is unused holiday pay taxed when employment ends?

Unused holiday pay is generally treated as earnings and is subject to Income Tax and National Insurance through payroll. It is separate from statutory redundancy pay and is not automatically covered by the £30,000 exemption. This calculator treats your entered holiday amount as gross and does not estimate payroll deductions.

What is the maximum statutory redundancy pay in 2026/27?

For a redundancy from 6 April 2026, the statutory maximum is £22,530 in England, Wales and Scotland (30 weeks × £751) or £23,490 in Northern Ireland (30 weeks × £783). This is a legal maximum, not a guaranteed payment: eligibility and the age/service record still need to be established.

Can my employer offer enhanced redundancy pay?

An employer can offer contractual or discretionary enhanced terms in addition to the statutory minimum. There is no universal two-times or three-times rule; the outcome depends on the contract, employer policy, collective agreement or settlement. The calculator treats the multiplier as an illustration supplied by you.

Does redundancy pay affect Universal Credit or other benefits?

A redundancy payment can affect means-tested benefits because capital and income rules may apply. The effect depends on the benefit, the timing and how the payment is treated. This calculator does not determine Universal Credit, tax-credit or other benefit entitlement.

What happens if my employer cannot pay redundancy pay?

If an employer is insolvent, the Redundancy Payments Service may cover eligible statutory redundancy and certain other amounts, subject to separate conditions and caps. You must use the official application process; this calculator cannot confirm insolvency-scheme entitlement.

Is this UK redundancy calculator an official entitlement decision?

No. It illustrates a gross statutory formula using age, complete service years, an annual-salary weekly-pay proxy and selected package inputs. It does not verify employee status, legal redundancy, relevant date, continuous-service rules, previous termination payments, contractual terms, weekly-pay method, tax, payroll or benefit rules. Check your employer’s written calculation and the official sources.

Public resources and official sources

These official sources explain the statutory formula and weekly cap, termination-payment tax and National Insurance treatment, Northern Ireland rules, insolvency claims and possible effects on means-tested support. This calculator does not estimate tax, National Insurance or benefit entitlement.

Statutory redundancy pay — GOV.UK
Eligibility, service and statutory redundancy formula.
Northern Ireland statutory redundancy pay — nidirect
Northern Ireland service, age bands, current weekly cap and claim rules.
Northern Ireland 2026 employment-rights limits — Department for the Economy
Northern Ireland statutory weekly-pay cap of £783 from 6 April 2026.
Tax on termination payments — GOV.UK
Tax and National Insurance treatment of termination payments.
Redundancy tax and National Insurance — GOV.UK
Payroll treatment of redundancy, notice and holiday payments.
Insolvent employer: what you can get — GOV.UK
Redundancy Payments Service and insolvency claims.
Universal Credit: money, savings and investments — GOV.UK
How redundancy pay can be treated as capital for Universal Credit and other means-tested support.

Loading Tools

Gross package components and total (£; rounded to whole pounds)

Measure

Amount

Statutory redundancy

£7,510

Enhanced top-up assumption

£0

PILON assumption

£4,163

Untaken holiday pay input

£1,500

Total gross package

£13,173

Age-band contributions are shown to pennies; the total statutory award rounds their sum to whole pounds.

Measure

Complete service years

Award amount (£)

Under 22 (0.5 week per full year)

£0.00

Age 22–40 (1 week per full year)

£7,510.00

Age 41+ (1.5 weeks per full year)

£0.00

Total statutory award (whole pounds)

£7,510

Model-only payment classification (£; not a payroll determination)

Measure

Amount

Potentially exempt qualifying statutory/enhanced amount

£7,510

PILON, holiday pay and any modeled amount above exemption

£5,663

UK redundancy pay FAQs

How is statutory redundancy pay calculated in the UK in 2026/27?

What statutory weekly-pay cap applies in 2026/27?

Who is usually eligible for statutory redundancy pay?

How many years of service count for UK redundancy pay?

Is UK statutory redundancy pay tax-free?

Is PILON taxable in the UK?

Is unused holiday pay taxed when employment ends?

What is the maximum statutory redundancy pay in 2026/27?

Can my employer offer enhanced redundancy pay?

Does redundancy pay affect Universal Credit or other benefits?

What happens if my employer cannot pay redundancy pay?

Is this UK redundancy calculator an official entitlement decision?