UK Redundancy Pay Calculator
Calculate your statutory redundancy pay entitlement based on HMRC rules for 2025/26. Covers age-banded multipliers, the weekly pay cap, and tax treatment.
Your Details
Capped at £700/week for statutory purposes (2025/26). Divide your annual salary by 52 to get weekly pay.
Quick select (annual salary)
Based on 2025/26 statutory rates. The weekly pay cap of £700 is expected to increase for 2026/27. Only statutory entitlement is calculated here — your employer may offer enhanced redundancy above this.
Not eligible
Please enter all dates to calculate.
Total Redundancy Pay
£0
Years of Service
0
Weekly Pay Used
£0
Tax-Free Amount
£0
Tax Treatment of Redundancy Pay
The first £30,000 of statutory redundancy pay is completely tax-free and exempt from National Insurance contributions. Any amount above £30,000 is taxed as earnings through PAYE. This threshold applies to the combined total of statutory and any enhanced redundancy payment.
Enhanced Redundancy Packages
Many employers offer enhanced redundancy above the statutory minimum. This could be a higher weekly pay figure (ignoring the £700 cap), a higher multiplier per year of service, or additional ex-gratia payments. The £30,000 tax-free threshold still applies to the total package.
Notice Pay Interaction
Statutory redundancy pay is separate from notice pay. You are entitled to both. If your employer asks you to leave immediately (payment in lieu of notice), that PILON is taxable as earnings and does not count towards the £30,000 redundancy threshold. Statutory notice is 1 week per year of service, up to 12 weeks.
Need help with the redundancy process?
Read our complete guide to managing redundancy for step-by-step employer obligations, consultation requirements, and selection criteria.