Work out statutory redundancy pay from your age, length of service and weekly pay, including the service and weekly pay caps.
Statutory redundancy pay depends on three things: your age across each year worked, how many full years you have been with the employer, and a week's pay. For 2026/27 a week's pay is capped at £751 and service is counted for a maximum of 20 years, which puts the highest possible statutory payment at £22,530.
On £35,000 a year with a standard 2026/27 tax code, no pension, no student loan, the figures work out like this. Open a calculator to put your own numbers in.
Each row is worked from the same rules the calculator uses. Service is counted backwards from the leaving date, so the years at the higher rate are the most recent ones.
| Age when leaving | Full years served | A week's pay | Weeks owed | Statutory payment | What limited it |
|---|---|---|---|---|---|
| 25 | 3 years | £480 | 3 weeks | £1,440 | no caps applied |
| 35 | 8 years | £620 | 8 weeks | £4,960 | no caps applied |
| 45 | 10 years | £600 | 12 weeks | £7,200 | no caps applied |
| 50 | 20 years | £700 | 24.5 weeks | £17,150 | no caps applied |
| 55 | 25 years | £900 | 27 weeks | £20,277 | 5 years above the cap ignored; weekly pay capped |
| 60 | 30 years | £1,200 | 29.5 weeks | £22,155 | 10 years above the cap ignored; weekly pay capped |
| Tax/source year | 2026/27 |
|---|---|
| Region | England/Wales/Northern Ireland |
| Tax code basis | 1257L where the page uses PAYE defaults |
| Pension basis | No pension deduction unless this example says otherwise |
| Student loan basis | No student loan unless selected in this example |
| What is not decided here | PayBreakdown does not decide payroll correctness, lender approval, benefit entitlement or employer compliance, and does not give regulated financial, mortgage, debt, tax, payroll or legal advice. |
|---|
The figures on this page are worked from redundancy pay, using the values below. Open the calculator if your example salary differs.
Each full year of service earns a number of weeks' pay, and the rate depends on how old you were during that year rather than your age when you leave.
Two caps mean a long career or a high salary stops increasing the statutory figure, which is why the maximum is fixed regardless of what you earn.
Statutory redundancy pay is the legal minimum. Many employers pay more under a contractual or enhanced scheme. The estimate counts a maximum of 20 years of service and caps a week's pay at the statutory limit, so a higher salary does not increase the figure beyond the cap. It does not decide eligibility, continuous-service disputes, notice pay, holiday pay owed, or the tax treatment of any amount above the statutory minimum.
This estimate is worked out on £35,000 annual gross. Change any of those and the take-home figure moves; pension method and student loan plan usually move it most. A payslip can differ from any calculator because payroll works pay period by pay period, so a tax-code change, a bonus, arrears or a refund can land in one month and not the next. See how each deduction is worked out.
It depends on your age, your full years of service and your weekly pay. The most anyone can receive as a statutory payment is £22,530, reached at 20 years of service aged 41 or over with a week's pay at or above the £751 cap.
You normally need at least 2 years of continuous service with the same employer. Below that there is no statutory entitlement, although an employer may still pay under its own scheme.
Statutory redundancy pay is not taxable. A qualifying termination payment is tax free up to a threshold set in legislation, and anything above that threshold is treated as taxable income. Notice pay and holiday pay are taxed as normal earnings. This calculator estimates the statutory entitlement itself, not the tax treatment of a larger settlement, so check the current threshold against GOV.UK before relying on it.
Only up to a point. A week's pay is capped at £751 for statutory purposes, so above roughly that weekly figure the statutory payment stops rising no matter what you earn.
Last updated 2026-08-27. Checked by Sean Elsmore. Rates last checked against GOV.UK on 2026-08-07. Estimates are for planning and should be checked against official records where the decision matters.