Free Redundancy Pay Calculator

UK Statutory Redundancy Pay Calculator

Calculate your statutory redundancy entitlement instantly. Enter age, years of service, and weekly pay — updated for the £751 weekly pay cap that applies from 6 April 2026.

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UK statutory rates built in

Weekly pay cap: £751
Years that count: 20 max
Most anyone gets: £22,530

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Leave tracking softwareMaking someone redundant? Add their leaving date and TimeTally works out the holiday they're owed in their final pay. Start dates, hours and leave in one place, £3 per employee a month.Holiday owed on leaving, worked out · £3 per employee

Age at redundancyOn the day the job ends

Complete years of serviceFull years with this employer

Gross weekly pay (£)Before tax. Hours vary? The average of the last 12 weeks.Over the £751 cap: £751 is used

Statutory pay: £10,514.00
Weeks' pay: 14

Age 41+4 years × 1½ weeks6 wks
Age 22–408 years × 1 week8 wks

14 weeks × £751.00 a week · based on 12 years of service · UK statutory calculation

Weekly pay capped at £751 (statutory limit for redundancies on or after 6 April 2026). £800.00 a week is above it, so £751 is used.

Tax-free. Statutory redundancy pay under £30,000 is not taxed, and it can never be more than £22,530.

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Your redundancy pay, year by year

Every year of service, at the age you were

12 full years count: 4 aged 41 and over at 1½ weeks each, 8 aged 22 to 40 at 1 week each. That is 14 weeks' pay. At £751.00 a week (£800.00 capped at £751), the statutory redundancy pay is £10,514.00.

Under 22: ½ week a year
22 to 40: 1 week a year
41 and over: 1½ weeks a year

A year aged 33: 1 week.
A year aged 34: 1 week.
A year aged 35: 1 week.
A year aged 36: 1 week.
A year aged 37: 1 week.
A year aged 38: 1 week.
A year aged 39: 1 week.
A year aged 40: 1 week.
A year aged 41: 1½ weeks.
A year aged 42: 1½ weeks.
A year aged 43: 1½ weeks.
A year aged 44: 1½ weeks.

Made redundant at 45

Weeks' pay14from 12 years of service

A week's pay£751.00£800.00, capped at £751

Statutory redundancy pay£10,514.00tax-free (under £30,000)

The most anyone can get is £22,530: 20 years, every one aged 41 or over (so 61 or older when made redundant), × 1½ weeks × £751.

How is statutory redundancy pay worked out?

An employee with at least 2 years' continuous service gets half a week's pay for each full year they were under 22, one week's pay for each full year aged 22 to 40, and one and a half weeks' pay for each full year aged 41 or over. Service is capped at 20 years and weekly pay at £751 for redundancies on or after 6 April 2026, so the most anyone can get is £22,530.

Worked example: age 45, 12 full years of service, £800 a week

4 full years aged 41 or over (ages 41–44) × 1.5 = 6 weeks.
8 full years aged 22–40 (ages 33–40) × 1 = 8 weeks.
Weekly pay of £800 is capped at £751.
14 weeks × £751 = £10,514.

Statutory redundancy pay: £10,514, tax-free because it is under £30,000.

From the calculator to your records

Stop calculating manually — manage timesheets automatically

This calculator gives you the numbers. TimeTally tracks hours, approvals, and pay automatically — so you have accurate records for every employee, every pay period. From £3/employee/month.

When someone leaves

Holiday owed, worked out to their last day

Add their leaving date and TimeTally works out the holiday they've built up by their last day: what is still to pay in their final pay, or what they've taken beyond it. Their start date sits on their profile, so the years of service are there when you need them, and approved timesheets keep the weeks of hours behind a week's pay when hours vary.

Leaving date on their profile
Pro-rated to the last day
In days or hours
Start date on record

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Track every employee's hours automatically
Staff submit timesheets via the iPhone or Android app, or web. Clock in/out is tracked automatically. Accurate hours records mean you always have the data you need — no paper forms, no chasing.
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Approve and export to payroll
All pending timesheets land in your dashboard. Approve or reject with a single tap. Every decision is timestamped — a full audit trail for every pay period.
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Full payroll summary before export
Pay is calculated directly from approved timesheets. See the full payroll breakdown for your whole team before exporting — no manual adjustments, no errors.
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Employees see their current balance and their projected future balance — accounting for leave already booked but not yet taken. Optionally let staff see who else in their department has booked time off, so they can plan around colleagues. Managers can manually adjust any employee's balance at any time — ideal when setting up mid-year from a previous system.
Pick the accrual method that fits each employee: upfront (full entitlement from day one), monthly accrual (earned gradually each month), daily accrual (builds day by day), or hours worked (earned per hour worked at a rate you set, 12.07% by default). All calculations are handled automatically — no spreadsheets needed.
TimeTally comes with annual leave, sick leave, maternity, paternity and bank holidays set up. Need something else, like compassionate leave? Create unlimited custom leave types with any name. For each type you control: whether it's paid or unpaid, whether it deducts from the annual leave balance or has its own separate pot, and who it's turned off for.
Decide exactly what happens at year end: toggle carryover on or off, set a maximum number of days that can carry, and optionally add an expiry date so carried-over days must be used within e.g. 3 months. You can also allow employees to book leave before they've earned it (negative balance), with an optional cap to limit exposure.

Set each employee's contracted hours per day of the week (or use a company default). TimeTally uses this to deduct the right amount of leave — a half-day Tuesday only costs half a Tuesday's hours — and to pay the correct amount for each day taken. Pro-rata entitlements for new starters and leavers are calculated automatically from their start date.
Employees can request leave in hours, half days, or full days from the app or website — no training required. Managers can book leave on behalf of any employee. Public holidays are added automatically for the country you choose. Set a custom leave year start date (e.g. 7th April) and balances reset automatically. Easy to set up even when migrating from another system mid-year.
Managers can approve any leave request in one tap. Rejections include an optional reason so employees know why, and they can send a new request. Employees can also ask to change or cancel approved leave, and you approve or turn it down. Any booked leave can be deleted if plans change, and the days go back on the balance — all with a full audit trail.
Leave sits in the main team calendar alongside timesheets and rota shifts — one view of the whole business. If you use time tracking, overtime converts to TOIL automatically at a rate you define. Leave analytics give managers a clear picture of absence patterns, entitlement usage, and remaining balances across the whole team.

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TimeTally has been excellent for our business. The app is simple to use, reliable, and makes managing holidays, absences, and staff records straightforward. The system has saved us a significant amount of administration time and gives both managers and employees clear visibility of leave balances and requests. Highly recommended for any business looking for an easy-to-use workforce management solution.

Jordan IngoeCLI Manchester

Setup was dead simple and the team just got on with it. Got everyone up and running in an afternoon with no help needed. Does everything we need for timesheets and holidays without the faff.

S.M.

Has completely changed how I handle timesheets. Used to dread it every week — now it takes me minutes. Really easy to get around and my staff picked it up straight away.

J.T.

Started using it just for rotas but quickly realised it does loads more. The timesheets and leave management are great, and it even handles TOIL and overtime which I wasn't expecting. Use it for everything now.

R.K.

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Redundancy pay: what UK employers must get right

Statutory redundancy pay has specific rules around eligibility, calculation, and tax. Here's everything you need to know.

How Statutory Redundancy Pay Is Calculated
Statutory Redundancy Pay (SRP) is calculated using three inputs: age, length of continuous service (up to 20 years), and weekly pay (capped at £751/week for redundancies on or after 6 April 2026). The formula awards: 0.5 week's pay per year of service under age 22; 1 week's pay per year of service aged 22–40; and 1.5 weeks' pay per year of service aged 41 or over. The maximum SRP is 30 weeks' capped pay — currently £22,530. Continuous service is calculated to the day the employment ends, not the date notice was given.
The 2-Year Qualifying Period
Employees must have at least 2 years' continuous service to qualify for statutory redundancy pay. Service is counted back from the 'relevant date' — usually the day employment ends — to the day it began. Breaks in service generally reset the clock, but some breaks are treated as preserving continuity (such as temporary cessation of work, or absence by arrangement). Employees who are dismissed without the correct notice are entitled to statutory notice pay, which is added to their service for redundancy calculation purposes.
The Weekly Pay Cap and What Counts as Pay
The weekly pay cap (£751 from 6 April 2026, reviewed annually) limits the amount that counts for SRP calculation purposes. For employees who earn above this threshold, only the capped figure is used — not their actual weekly earnings. 'A week's pay' for employees with normal working hours is their contractual weekly pay. For those without normal working hours (e.g. zero-hours or variable-hours workers), it is the average of the last 12 weeks in which pay was received, excluding weeks with no pay.
Voluntary vs. Compulsory Redundancy: Key Differences
Voluntary redundancy occurs when an employer invites employees to apply for redundancy — often with enhanced pay — before compulsory selection begins. Volunteering does not remove the right to statutory redundancy pay, but enhanced packages offered voluntarily are at the employer's discretion. Compulsory redundancy requires a fair selection process using objective criteria (e.g. skills, performance, attendance). Using age, gender, disability, or other protected characteristics as selection criteria — even implicitly — is unlawful discrimination.
Collective Redundancy Consultation Requirements
Where an employer proposes to make 20 or more employees redundant within 90 days at one establishment, collective consultation obligations under the Trade Union and Labour Relations (Consolidation) Act 1992 apply. Consultation must begin at least 30 days before the first dismissal takes effect (45 days for 100 or more redundancies). Failure to comply can result in a 'protective award' of up to 180 days' gross pay per affected employee (90 days before 6 April 2026), payable to each individual — a potentially significant liability for large-scale restructures.
Enhanced Redundancy Pay: Contractual and Tax Considerations
Many employers offer enhanced redundancy pay above the statutory minimum. Enhanced pay is contractual if it is included in the employment contract or an established policy — in which case refusing to pay it is a breach of contract. The first £30,000 of any redundancy payment (statutory or enhanced) is free of income tax and NIC. Any amount above £30,000 is subject to income tax (but not employee NIC). Post-employment notice pay (PENP) must be calculated correctly where enhanced terms are offered alongside notice pay.
Redundancy During Pregnancy or Maternity Leave
Employees who are pregnant or on maternity leave at risk of redundancy have enhanced protection. They must be offered any suitable alternative vacancy in priority over other at-risk employees, even if they are less qualified than other candidates. This priority right extends for 18 months from the child's birth date. Failure to offer a suitable alternative is automatically unfair dismissal and sex discrimination. The enhanced protection applies regardless of service length — even an employee in their first month of employment has this right if pregnant.
Settlement Agreements and Redundancy
A Settlement Agreement (formerly a Compromise Agreement) can be used to compromise a redundancy claim in exchange for a payment, often in addition to or instead of the statutory entitlement. The agreement must be in writing, the employee must receive independent legal advice (usually covered by an employer contribution to legal fees), and it must meet specific statutory requirements to be valid. Settlement agreements are commonly used where enhanced pay is offered in return for waiver of all employment claims — including any disputes about the fairness of the redundancy process.

Understanding UK Statutory Redundancy Pay

Everything you need to know about redundancy pay under UK law. For related topics, try our overtime pay calculator or minimum wage calculator.

Who is entitled to statutory redundancy pay?

To qualify for statutory redundancy pay in the UK, an employee must have been continuously employed by the same employer for at least two years, be an employee (not a self-employed contractor or worker), and have been made redundant (the job itself must be redundant). There is no upper age limit. Employees who are offered suitable alternative employment and unreasonably refuse it may lose their entitlement.

How is statutory redundancy pay calculated?

UK statutory redundancy pay is calculated based on three factors: age, complete years of continuous service (capped at 20 years), and weekly gross pay (capped at £751 for redundancies on or after 6 April 2026). For each complete year of service: employees aged under 22 receive half a week's pay; employees aged 22–40 receive one week's pay; employees aged 41 and over receive one and a half weeks' pay. Each year of service is assessed at the age the employee was during that year, working backwards from the date of redundancy.

What is the weekly pay cap for redundancy?

For redundancies on or after 6 April 2026, the statutory weekly pay cap in England, Scotland and Wales is £751. Even if an employee earns more than this, only £751 per week is used in the calculation. The cap is raised every April. The maximum total statutory redundancy payment is therefore £22,530 (20 years × 1.5 weeks × £751). Northern Ireland sets its own cap. Your employer may offer enhanced (contractual) redundancy pay above this statutory minimum.

Is statutory redundancy pay taxable?

The first £30,000 of statutory redundancy pay is tax-free. Any amount above £30,000 is subject to Income Tax, though the employee pays no National Insurance on it (the employer pays Class 1A National Insurance on the part above £30,000). Payments for notice pay, holiday pay, or other contractual entitlements are fully taxable as earnings in the normal way. Your employer should make the correct tax deductions through PAYE before you receive the payment.

Can I get more than statutory redundancy pay?

Yes. Many employers offer enhanced redundancy pay above the statutory minimum, either because their employment contracts guarantee it or as a goodwill gesture. Enhanced schemes might use a higher weekly pay cap, a higher multiplier per year, or pay for more than 20 years of service. If your employer offers enhanced redundancy pay, the enhanced amount replaces — not supplements — the statutory calculation. Always check your employment contract or company redundancy policy.

What if I was made redundant before I knew I was pregnant?

Redundancy during pregnancy or maternity leave is a legally sensitive area. If the redundancy selection process was influenced by pregnancy, this could constitute automatic unfair dismissal and sex discrimination, regardless of length of service. If you are on maternity leave and your role is made redundant, your employer must offer you any suitable alternative vacancies before other employees. You should take legal advice promptly if you believe your redundancy is connected to pregnancy or maternity leave.

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