Redundancy pay calculator UK 2026-27

Statutory redundancy pay limits

The maximum is 20 years × 1.5 weeks × the weekly cap. Caps from the Employment Rights (Increase of Limits) Order 2026 and the Northern Ireland Order 2026, in force from 6 April 2026.

How redundancy pay is worked out

• Who qualifies: employees with at least 2 years' continuous service with their employer. Being dismissed for misconduct isn't redundancy, and you can lose statutory pay if you turn down suitable alternative work without good reason.
• Age bands: count back from your redundancy date. Each full year you were 41 or over all through earns 1.5 weeks' pay, each full year at 22 or over earns 1 week, and other years earn half a week. Only the last 20 years count.
• A week's pay: your average weekly pay before tax over the 12 weeks before you got your notice, capped at £751 (£783 in Northern Ireland) from 6 April 2026.
• Notice: at least 1 week if you've worked there 1 month to 2 years, 1 week per full year from 2 to 12 years, and 12 weeks after 12 years. Your employer pays you through it or pays in lieu.
• Holiday: statutory holiday you've built up but not taken must be paid when you leave.
• Tax: the first £30,000 of statutory and enhanced redundancy pay combined is usually tax-free. Above that it's taxed as income, with no employee National Insurance (your employer pays 15% Class 1A). Notice pay, PILON, post-employment notice pay, holiday pay, unpaid wages and bonuses are taxed and have National Insurance like wages.
• Scotland and Northern Ireland: redundancy pay rules in Scotland are the same as in England and Wales. Northern Ireland has its own law with the same bands but a £783 cap. If you're a Scottish taxpayer, the taxed parts are charged at Scottish Income Tax rates (2026-27: 19% starter, 20% basic, 21% intermediate, 42% higher, 45% advanced, 48% top), and choosing Scotland uses them in the estimate.

This calculator gives the statutory minimum and an estimate of tax. It follows GOV.UK's own calculator for the statutory amount. Your employer's figure may differ if your pay varies or your contract gives more. It doesn't cover payments for injury or disability, pension contributions, foreign service or tribunal awards.

Worked examples

Aged 45 with 12 years' service
Jo is 45 on the date she's made redundant, has worked for her employer for 12 full years and earns £600 a week before tax, under the £751 cap. Counting back from her redundancy date, the last 4 years were worked at age 41 or over (1.5 weeks each = 6 weeks) and the 8 years before that at 22 to 40 (1 week each). That's 14 weeks × £600 = £8,400 statutory redundancy pay, all of it tax-free.

Over the weekly cap and the 20-year limit
Dev is 50, has 25 years' service and earns £1,000 a week. Only the last 20 years count (9 years at 41 or over and 11 years at 22 to 40 = 24.5 weeks), and his weekly pay is capped at £751. In England, Wales or Scotland that's 24.5 × £751 = £18,399.50. If he worked in Northern Ireland the cap is £783, so it would be £19,183.50.

Started at 18
Aisha is 24, started at 18 and has 6 full years' service on £400 a week. Her last 2 years count at 1 week each and the 4 years she worked before turning 22 at half a week each, so she gets 4 weeks × £400 = £1,600.

A bigger package that goes over £30,000
Dev (above) is also offered £20,000 enhanced redundancy pay, 12 weeks' pay in lieu of notice (£12,000) and 5 days' untaken holiday (£1,000). His statutory and enhanced redundancy pay add up to £38,399.50: the first £30,000 is tax-free and £8,399.50 is taxed as income, with no employee National Insurance on it. The notice and holiday pay (£13,000) are taxed like normal pay. With £28,000 of other pay earlier in the tax year, the calculator estimates about £4,279.90 Income Tax and £260 National Insurance (if it's all in one final monthly payslip), so he'd keep roughly £46,859.60 of £51,399.50. His employer also pays 15% Class 1A National Insurance on the £8,399.50 over £30,000.

GOV.UK's notice pay example
From GOV.UK: you're due £10,000 statutory redundancy pay and your employer adds a £5,000 severance payment, but you don't work your 4-week notice and get no separate notice pay. At £500 a week you'd have earned £2,000, so £2,000 of the severance is post-employment notice pay, taxed with National Insurance like wages. The other £13,000 is tax-free because it's under £30,000. Choose "No separate notice pay" in the calculator to see this.

Figures from the calculator on this page (2026-27 rules, England, Wales or Scotland unless stated).

Frequently asked questions

How much statutory redundancy pay will I get?
You get half a week's pay for each full year you worked under age 22, one week's pay for each full year you were 22 to 40, and one and a half weeks' pay for each full year you were 41 or older. Only your last 20 years count. If you were made redundant on or after 6 April 2026, weekly pay is capped at £751 in England, Wales and Scotland (£783 in Northern Ireland), so the most you can get is £22,530 (£23,490 in Northern Ireland).

Who can get statutory redundancy pay?
You normally qualify if you're an employee and have worked for your employer continuously for 2 years or more. You don't get it if your employer offers to keep you on, or offers suitable alternative work that you turn down without good reason, and dismissal for misconduct isn't redundancy. Some jobs are excluded, including crown servants, the armed forces and police, share fishermen, former registered dock workers, apprentices who aren't employees at the end of their training and domestic servants who are members of the employer's immediate family.

What weekly pay is used?
Your weekly pay before tax and other deductions, averaged over the 12 weeks before the day you got your redundancy notice. If you were paid less than usual because you were on furlough, use what you would normally have earned. Monthly paid? Multiply your monthly pay by 12 and divide by 52, which is what the calculator does if you choose monthly pay.

Is redundancy pay taxed?
The first £30,000 of statutory redundancy pay and any enhanced redundancy or severance pay (combined, including non-cash benefits you keep) is usually tax-free. Anything over £30,000 is taxed as income. You don't pay National Insurance on that part: your employer pays 15% Class 1A National Insurance on it instead. Notice pay, pay in lieu of notice, holiday pay, unpaid wages and bonuses are taxed and have National Insurance taken, just like normal pay.

How is pay in lieu of notice (PILON) taxed?
Since April 2018 you pay Income Tax and National Insurance on the part of a termination payment that matches what you would have earned if you had worked your notice. That covers a PILON lump sum, pay while on gardening leave, and any part of a severance or enhanced redundancy payment that counts as post-employment notice pay (PENP). Post-employment notice pay never comes out of statutory redundancy pay. If the PENP is more than the severance you actually get, you're only taxed on what you get.

How much notice do I get?
At least the statutory minimum: one week if you've worked for your employer for between 1 month and 2 years, one week for each full year if you've worked there 2 to 12 years, and 12 weeks if you've been there 12 years or more. Your contract can give you more, but not less. Notice pay is based on your average weekly pay over the 12 weeks before your notice period starts.

Do I get paid for holiday I haven't taken?
Yes. When you leave a job your employer must pay you for any statutory holiday you've built up but not taken, even if you're dismissed for gross misconduct. Holiday pay is taxed and has National Insurance taken like normal pay. Work out how many days you've built up with the holiday entitlement calculator.

Why has so much tax been taken from my redundancy payment?
If your employer pays the taxable part after giving you your P45, they must use the 0T tax code, which takes tax as if you'd already used your Personal Allowance. A large payment can also push you into a higher tax band for the year. If you think too much tax has been taken, or it hasn't been taxed the right way, contact HMRC. This calculator estimates the tax over the whole tax year, not what one payslip will show.

Is redundancy pay different in Scotland or Northern Ireland?
Statutory redundancy pay is the same in Scotland as in England and Wales (the £751 weekly cap from 6 April 2026). Northern Ireland has its own law with the same age bands and 20-year limit but a higher cap of £783 a week, so the maximum is £23,490. The £30,000 tax-free amount and National Insurance are the same across the UK, but if you're a Scottish taxpayer the taxed parts are charged at Scottish Income Tax rates (19% to 48% in 2026-27). Choose Scotland in the calculator and the Income Tax estimate uses the Scottish starter, basic, intermediate, higher, advanced and top rates.

How long do I have to claim redundancy pay?
You have 6 months from the date your job ends to claim statutory redundancy pay. If your employer won't pay or you disagree with the amount, you can make a claim to an employment tribunal within those 6 months. If your employer is insolvent you may be able to claim from the government instead. Acas can give free advice.

Sources

All checked on 19 October 2026. GOV.UK: Redundancy: your rights, statutory redundancy pay, notice periods, Calculate your statutory redundancy pay, Tax on termination payments and how it's deducted, Holiday before leaving a job, Rates and thresholds for employers 2026 to 2027, Income Tax rates, Scottish Income Tax. HMRC: NIM13201 Class 1A on termination awards. legislation.gov.uk: Employment Rights (Increase of Limits) Order 2026, Employment Rights (Increase of Limits) Order (Northern Ireland) 2026, Employment Rights Act 1996 s162, s155 and s86, Employment Rights (NI) Order 1996 art 197 and art 118, Income Tax (Earnings and Pensions) Act 2003 s403. Northern Ireland: Redundancy pay on nidirect.

General guidance and estimates only, not legal, tax or financial advice. For a dispute talk to your employer first; Acas gives free advice. If your employer is insolvent, see your rights if your employer is insolvent. To check the tax on your whole year, use HMRC's Estimate your Income Tax.

Other pay calculators

Starting a new job? The take-home pay calculator shows your pay after Income Tax, National Insurance, student loan and pension. Check the holiday you're owed with the holiday entitlement calculator, and if a payout takes your income over £100,000, read the £100,000 tax trap guide.

Make your redundancy money last

Between jobs, it helps to see exactly where the money goes. The Household Bills & Budget Planner (£7, Excel and Google Sheets) lists every bill, however often it's paid, turns it into one monthly figure and shows what's left.

Prefer free? Try the bills monthly cost calculator.