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, a standard 2026/27 tax code and no pension or 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 |
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.
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.
| 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 use 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.
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. Salary estimates can change when the tax year, UK region, tax code, pension method, student loan plan, pay frequency, bonus, overtime or salary-sacrifice assumptions change.
The useful figure for budgeting is usually take-home pay after Income Tax, National Insurance, pension deductions and student loan deductions. Gross pay helps compare jobs, while net pay is usually the better starting point for bills, savings and borrowing checks.
Real payslips can differ because payroll works by pay period and can include tax-code changes, pension method differences, student-loan starts or stops, taxable benefits, salary sacrifice, bonuses, overtime, arrears, refunds, or rounding. Match the calculator settings to the payslip before treating a difference as meaningful.
Two jobs with the same headline salary can feel different once pension contribution rate, employer pension method, student-loan plan, bonus pattern, overtime, tax code, region, salary sacrifice and pay frequency are considered. Compare the monthly net figure with commuting costs, bills and savings goals before deciding whether a higher gross salary improves the household plan.
Start by matching the pay basis: annual salary, hourly rate, weekly hours, pay frequency and whether the figure is full-year or part-year. Then match the deductions that usually move the result the most: pension method, pension rate, student-loan plan, postgraduate loan, tax code, Scottish or Welsh tax treatment, bonus, overtime, taxable benefits and salary sacrifice. If the page is a comparison page, keep both sides on the same tax year and pension method before reading the difference. If it is a required-salary or pro-rata page, treat the answer as a target estimate and rerun it with a cautious lower-income or higher-deduction scenario before using it for bills, rent, borrowing or savings.
Use the visible result as a starting point, then change the assumptions that apply to your situation. For salary pages, that usually means tax year, region, tax code, pension method, student loan plan, bonus, overtime and salary-sacrifice settings. For borrowing, debt or budget pages, it means the real payment amount, term, interest rate, balance, bill timing, savings target and any expected income change. Keep the result separate from advice or approval decisions: PayBreakdown helps you model the numbers, while official sources, employer records, provider documents and professional support are still the right place for final checks. If a change is close to a threshold, rerun the calculation with a cautious higher-cost or lower-income scenario before relying on the result.
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. Payments above it can be, and the first £30,000 of a qualifying termination payment is normally tax free, with anything above that treated as taxable income. Notice pay and holiday pay are taxed as normal earnings.
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 2026-08-19. Estimates are for planning and should be checked against official records where the decision matters.