Being made redundant? Also worth checking your UK take-home pay calculator once you're back in work.
Gross pay before tax. The statutory cap for 2026/27 is £751/week — higher earnings are limited to this figure.
This calculator gives the statutory minimum based on the Employment Rights Act 1996 and 2026/27 rates (effective 6 April 2026). Your employer may offer enhanced terms above this amount. Figures are for guidance — confirm your entitlement with your employer or ACAS.
Statutory redundancy pay is the legal minimum your employer must pay if you are made redundant after at least two years of continuous service. The amount depends on your age, how many complete years you have worked for the employer, and your gross weekly pay — capped at £751 for dismissals on or after 6 April 2026. The calculation works year by year: each complete year of service earns 0.5 weeks' pay if you were under 22 during that year, 1 week if you were between 22 and 40, and 1.5 weeks if you were 41 or over. Service is capped at 20 years, giving a maximum statutory payment of £22,530.
The first £30,000 of statutory redundancy pay is free of income tax and National Insurance. If your total redundancy package — including any enhanced payment from your employer — exceeds £30,000, the excess is taxed as employment income. Notice pay and any holiday pay owed are always fully taxable regardless of the redundancy element. If you believe you have been underpaid or unfairly dismissed, you can raise a claim through ACAS or an employment tribunal.