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Redundancy Pay Calculator | UK
Redundancy Pay Calculator is designed to help you understand take-home pay, deductions, and how tax rules affect your income. It works best when you want a fast, comparable estimate before you speak to a lender, provider, adviser, employer, or supplier. Use it as a planning tool rather than a final quote. This version is framed for United Kingdom users where regional assumptions matter, so you can test a few scenarios and see how changes in the main inputs affect the outcome.
Interpretation
What your result means
Use the notes below to understand the main figures in your result and when this calculator is most useful.
When to use this calculator
- Before accepting a pay change, bonus, pension contribution, or salary-sacrifice option.
- When you want to compare employed, self-employed, or dividend-based income scenarios.
- When you need a simple take-home estimate before running payroll or filing returns.
Statutory Redundancy Pay
Use this metric to compare scenarios side by side and understand how the key drivers affect the final outcome.
Tax-Free
Review this figure alongside your gross income so you can understand the true cost of deductions.
Weeks Entitled
Use this metric to compare scenarios side by side and understand how the key drivers affect the final outcome.
Weekly Cap Applied
Use this metric to compare scenarios side by side and understand how the key drivers affect the final outcome.
Next steps
What to do next
Continue with the most relevant next step based on your result.
Example
A realistic UK planning example
A realistic example to help you understand how the numbers fit together.
Your Age
35
Complete Years of Service
25 years
Gross Weekly Pay ({symbol})
£35,000
After entering these figures, compare statutory redundancy pay, tax-free and weeks entitled before deciding which scenario looks strongest.
Avoid mistakes
Common mistakes
A few things that often lead to misleading or incomplete results.
FAQ
Frequently asked questions
Helpful answers to common questions about this calculator.
What is statutory redundancy pay?
Statutory redundancy pay is a legal minimum payment you are entitled to if you are made redundant in the UK and have worked for your employer for at least 2 complete years. The amount depends on your age, length of service (up to 20 years), and weekly pay (capped at £700 for 2025/26).
What is the weekly pay cap for redundancy in 2025/26?
For 2025/26, the maximum weekly pay used to calculate statutory redundancy is £700. If you earn more than this, only £700 per week is used in the calculation. This cap is reviewed annually by the government.
How do age multipliers work for redundancy pay?
The amount you receive per year of service depends on your age during that year of service. For years worked under age 22, you receive half a week's pay per year. For years worked aged 22–40, you receive one week's pay per year. For years worked aged 41 or over, you receive one and a half weeks' pay per year. This calculator applies a single multiplier based on your current age as a simplified estimate.
Is there a maximum number of years counted for redundancy?
Yes. Only your last 20 complete years of service are counted when calculating statutory redundancy pay. If you have worked for an employer for 25 years, only 20 years will be used in the calculation.
Is redundancy pay taxable?
The first £30,000 of a genuine redundancy payment is tax-free. Any amount above £30,000 is subject to income tax at your marginal rate. National Insurance is not usually payable on redundancy payments, even above £30,000. Payments in lieu of notice (PILON) are treated as earnings and are fully taxable.
What is the difference between statutory and enhanced redundancy pay?
Statutory redundancy pay is the legal minimum set by the government. Some employers offer enhanced redundancy pay, which is more generous — for example, using your actual weekly pay without the £700 cap, or paying more weeks per year of service. Enhanced redundancy terms should be set out in your employment contract or company policy.
What about notice pay during redundancy?
Redundancy pay is separate from notice pay. You are also entitled to statutory notice pay (1 week per year of service, up to 12 weeks). Notice pay is treated as normal income and is fully subject to tax and National Insurance. Some employers pay a lump sum in lieu of notice (PILON).
When will I receive my redundancy payment?
Your employer should pay your statutory redundancy pay on the date your employment ends, or shortly afterwards. If your employer refuses to pay, you can apply to the Employment Tribunal within 6 months. If your employer is insolvent, you can claim from the government's National Insurance Fund.
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