Redundancy pay calculator 2026/27
Work out the statutory redundancy payment your age and length of service earn, and see exactly which years count and where the legal caps bite.
Your 14.0 weeks, year by year
Age is the age you were during each year of service, counting back from the day the job ends. Service beyond 20 years does not add to the payment.
The tax on a termination payment
A redundancy package is rarely one payment, and the parts are taxed differently. Statutory redundancy pay is itself tax-free, but it counts against the first £30,000 before anything else is measured against it, so an enhanced or ex gratia payment on top of a large statutory one has less of the exemption left than you might expect. Pay in lieu of notice is different again: where notice is not worked, the part of a payment that stands in for it is taxed as ordinary earnings and gets none of the exemption at all.
Untaken holiday is ordinary pay, not part of a termination payment, so it is not in the figures above. Nothing above assumes anything about your notice that you have not told it.
Common questions
How is statutory redundancy pay worked out?
By your age, your length of service and a week’s pay. Each full year you were 41 or over earns 1.5 weeks’ pay, each year from 22 to 40 earns 1.0, and each year under 22 earns 0.5. Only the most recent 20 years count, and a week’s pay is capped at £751 however much you earn, so the payment cannot exceed £22,530.
Is there a minimum age for redundancy pay?
No. The Employment Rights Act 1996 set a lower age limit once and it was repealed with effect from 1 October 2006, so age decides only which band each of your years falls into and never whether you qualify at all. The one length condition is 2 years of continuous employment, and a year worked before you were 22 earns 0.5 weeks’ pay like any other year in that band. If you are young enough that the figure above looks too small to be right, that is the half-week band doing its work rather than a mistake.
Is redundancy pay taxed?
A statutory redundancy payment is itself free of income tax and National Insurance, and the first £30,000 of a termination payment is exempt — but the statutory payment counts against that £30,000 before anything else is measured against it, so a large statutory payment leaves less of the exemption for an enhanced or ex gratia sum. Anything above the exemption is taxed as pay at your own rates, and your employer pays Class 1A National Insurance on it while you pay none.
What about pay in lieu of notice?
Where your notice is worked, or paid as ordinary earnings, there is no post-employment notice pay. Where it is not worked, the part of the payment that stands in for it is treated as earnings in full and gets none of the £30,000 exemption — it is taxed and pays National Insurance like normal pay. The calculator asks which of those applies rather than assuming.
What else should I expect to be paid?
Untaken holiday is ordinary pay rather than part of a termination payment, so it is taxed as pay in the normal way and is not included in the figures above. An enhanced redundancy scheme in your contract is paid on its own terms; enter it as another payment on leaving and the calculator will measure it against the exemption with the statutory payment.