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Statutory redundancy pay
calculator (UK)

Work out statutory redundancy pay using the age-banded formula, the £751 weekly cap and the 20-year limit.

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Capped at £751 for the statutory calculation
Statutory redundancy pay
 
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How is statutory redundancy pay calculated in the UK?

Half a week's pay per full year of service under 22, one week per year from 22 to 40, and one and a half weeks per year at 41 and over. A week's pay is capped at £751 and only the last 20 years count.

How we calculated this

The calculator walks back through each full year of continuous service, up to 20, and asks how old the employee was during that year: half a week's pay for a year under 22, one week for a year from 22 to 40, one and a half weeks for a year at 41 or over. It adds the weeks up and multiplies by weekly pay, capped at £751 for redundancies on or after 6 April 2026. Employees with under two years of continuous service get nothing under the statutory scheme. This is the statutory minimum only. The working and the sources are set out below.

New to the term? Read the plain-English definition of statutory redundancy pay in the HR Glossary.

Your working
Assumptions
  • Uses the age-in-year method: the band is set by the employee's age during each year of service, counting back from today, not their age now. That is what the statute requires, and it is why long-serving employees accrue at more than one rate.
  • Caps a week's pay at £751 and service at 20 years, giving a maximum of £22,530 for redundancies on or after 6 April 2026. Earlier dismissal dates use lower caps, so check the date the employment ends.
  • Requires two years of continuous service. Fixed-term contracts, transfers, breaks in service and earlier periods of employment all affect what counts as continuous, so confirm the start date before relying on the figure.
  • Applies to Great Britain. Northern Ireland runs its own scheme, and contractual or enhanced redundancy terms can pay more; the statutory figure is the floor an employee is owed, never the ceiling.
Sources

What to do about it

The statutory figure is the smallest number in a redundancy. The consultation, the selection, the handover and the knowledge that leaves with the person are all bigger. These steps are for whoever is running the process, whether or not they made the decision to restructure.

1

Cross-check the figure and the date

Run the same inputs through the GOV.UK calculator and confirm which cap the termination date triggers. Confirm the two years of continuous service. Put both figures on file with the date and the weekly pay used.

2

Read the contract and any enhanced scheme

Contractual terms, collective agreements, policies and past custom can all pay more than the statutory minimum, and a history of enhanced payments can become expected. Note which document you relied on for each person.

3

Get the consultation and selection right before the number matters

A fair selection process, applied the same way to everyone in the pool and documented, is what makes the redundancy defensible. The statutory payment does not protect a decision that was made unfairly.

4
Where a tool helps

Test whether the role or the person is redundant

Redundancy is about the work disappearing. Before a seat goes, ask whether the capability in it is needed elsewhere, and whether you will be hiring the same skills back within a year. If the answer is yes, the cheaper decision is often to move the person, not to pay them out.

5

Record what the restructure was meant to fix and check it in six months

Most restructures are the delayed bill for hires and capability gaps from years earlier. A one-page note of the reasoning, the cost, the alternatives considered and the expected result gives you something to measure against, and something to show when the next round is proposed.

The payout is a formula.
The workforce is not.

Compono is a talent intelligence platform: an applicant tracking system and an employee engagement platform built on the same people data. Most HR systems can produce the redundancy figure and have nothing to say about where capability actually sits, or who fits the roles that remain.

Step 4 asks whether the capability is needed elsewhere before the seat goes. Compono gives you that picture across the workforce, and reads fit before you rehire, so a restructure is planned from evidence rather than repeated in a year. The figure above is what the exit costs. The people data is what stops you paying it for the same gap twice.

See how it works
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Common questions

What is the maximum statutory redundancy payment?

£22,530, which is 20 years at one and a half weeks capped at £751 a week. This applies to redundancies on or after 6 April 2026.

Do the age bands use the employee's current age?

No. The bands apply to the employee's age during each year of service, so someone who worked across their early 40s accrues at different rates for different years. This calculator works it out year by year.

Who qualifies for statutory redundancy pay?

Employees with at least two years of continuous service. Contractual redundancy schemes can pay more than the statutory minimum, and many do.

This page is general information, not legal advice. We check figures annually and update them on a best-efforts basis, but employment rules change and we cannot promise everything here is current or complete. Before you act on it, confirm the detail with GOV.UK or your own adviser. Last reviewed July 2026.

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Statutory redundancy pay

The plain-English definition, with the calculators and rules that sit around it.

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