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2025/26 Tax Year

Redundancy Pay Calculator

Calculate your statutory redundancy pay, notice period and total package. Updated for 2025/26 with the £719 weekly pay cap.

Your age on the date your employment ends

Complete years worked for this employer. Must be at least 2 years to qualify

£

Your average weekly pay over the 12 weeks before your redundancy notice. Capped at £719 for the statutory calculation

Enter your age, years of service and weekly pay, then click Calculate to see your redundancy entitlement.

2025/26 Statutory Redundancy Pay — at a glance

Age-based multipliers

Age during that yearWeeks per year
Under 22½ week
22 to 401 week
41 and over1½ weeks

Key limits (2025/26)

Weekly pay cap£719
Maximum service20 years
Maximum redundancy pay£21,570
Minimum service to qualify2 years
Tax-free threshold£30,000

Figures apply to redundancies on or after 6 April 2025. Source: GOV.UK.

How Does Statutory Redundancy Pay Work?

Statutory redundancy pay is a legal minimum entitlement for employees with at least 2 years of continuous service. The amount depends on three factors: your age at the time of redundancy, your length of service (capped at 20 years), and your weekly pay (capped at £719 from 6 April 2025). The maximum statutory payment is £21,570.

The Three Age Bands Explained

The calculation uses a different multiplier depending on your age during each year of service. For years worked under age 22, you receive half a week's pay. For years worked aged 22 to 40, you receive one full week's pay. For years worked aged 41 or over, you receive one and a half weeks' pay. This means two employees with the same salary and service length can receive different amounts based on their age profile during that service.

Statutory vs Enhanced Redundancy Pay

The statutory figures above are the legal minimum. Many employers offer enhanced redundancy pay — for example, using your actual weekly pay without the £719 cap, or multiplying the statutory amount. The first £30,000 of any redundancy payment (statutory or enhanced) is tax-free. Any amount above £30,000 is subject to income tax at your marginal rate. Notice pay, however, is always subject to tax and National Insurance in the normal way.

Frequently Asked Questions

How much statutory redundancy pay will I get?

Statutory redundancy pay is based on your age, years of service and weekly pay. You get half a week's pay per year under 22, one week per year aged 22 to 40, and one and a half weeks per year aged 41 or over. Weekly pay is capped at £719 for 2025/26.

What is the maximum statutory redundancy pay in 2025/26?

The maximum statutory redundancy pay is £21,570 for redundancies on or after 6 April 2025. Weekly pay is capped at £719 and service is capped at 20 years.

Is redundancy pay taxable?

Statutory redundancy pay is tax-free. The first £30,000 of any redundancy package is tax-free. Any enhanced redundancy pay above £30,000 is subject to income tax at your marginal rate. Notice pay is always taxable as normal pay.

How many years do I need to qualify for redundancy pay?

You must have at least 2 years of continuous employment with your employer to qualify for statutory redundancy pay.

What is my statutory notice period?

Your statutory notice period is one week for each full year of service between 2 and 12 years, up to a maximum of 12 weeks. Your contract may give you more but cannot give you less than the statutory minimum.

What is the weekly pay cap for redundancy in 2025/26?

The weekly pay cap for statutory redundancy pay is £719 for redundancies on or after 6 April 2025. If you earn more than £719 per week, the statutory calculation uses £719. Note: notice pay uses your actual weekly pay with no cap.

Statutory redundancy pay figures are correct for redundancies on or after 6 April 2025. Source: GOV.UK, updated 6 April 2025. This calculator covers statutory redundancy pay only and does not account for enhanced redundancy packages, contractual notice, garden leave, or payments in lieu of notice (PILON). For personalised advice, contact Acas on 0300 123 1100.