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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.

Where Compono fits

Redundancy is the most expensive way a workforce plan can fail. It is usually the bill for hiring decisions and capability gaps made years earlier. Compono helps you see the shape of your workforce and where the capability actually sits, so restructures are planned from evidence rather than discovered in a spreadsheet. Pair this with the Reskill vs Rehire calculator before you decide a role has to go.

See how it works

How it's calculated

Statutory redundancy pay gives half a week's pay for each full year of service under age 22, one week's pay for each full year from 22 to 40, and one and a half weeks' pay for each full year at 41 and over. The age bands apply to the employee's age during each year of service, so a long-serving employee accrues across bands and the sum has to be worked year by year rather than on current age. A week's pay is capped at £751 and only the last 20 years of service count, which puts the maximum statutory payment at £22,530. The employee needs at least two years of continuous service to qualify. Figures apply to redundancies on or after 6 April 2026, and to Great Britain: Northern Ireland has its own rules. This is general guidance, not legal advice.

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

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.