Statutory Redundancy Pay Calculator 2026/27
Statutory redundancy pay uses your age, years of service and weekly gross pay capped at £751 for 2026/27. Each year counts: 0.5 week under 22; 1 week aged 22 to 40; 1.5 weeks aged 41 plus. The maximum payout is £22,530 and the first £30,000 is tax-free. Enter your details below.
Figures verified against HMRC 2026/27 rates on .
Written by James HartleyCIMA
Calculator
Must be at least 2 years to qualify
Capped at £751 for statutory calculation
Statutory Redundancy Pay
£4,800
8.0 weeks' pay · Weekly pay used: £600
| Age Band | Years | Multiplier | Weeks | Amount |
|---|---|---|---|---|
| Age 22 to 40 | 8 | ×1 | 8.0 | £4,800 |
| Total | 8.0 | £4,800 | ||
Tax-Free Amount
£4,800
First £30,000 is tax-free
Taxable Amount
£0
Above £30,000 threshold
Statutory and contractual redundancy payments are tax-free up to £30,000. Any amount above this is taxed as income. Pay in lieu of notice (PILON) is always taxable.
These insights are generated based on your inputs and general UK financial guidelines. They do not constitute personal financial advice. Always consult a CIMA-qualified accountant or FCA-regulated adviser before making financial decisions.
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How Statutory Redundancy Pay Calculator 2026/27 Works
The redundancy pay formula
For each complete year of continuous employment: under age 22 = 0.5 week's pay; age 22 to 40 = 1 week's pay; age 41+ = 1.5 weeks' pay. Service is capped at 20 years and weekly pay at £751 (2026/27), giving a maximum of £22,530.
What changed for 2026/27
The statutory weekly pay cap increased from £719 to £751 from 6 April 2026, as confirmed by The Employment Rights (Increase of Limits) Order 2026. This raises the maximum statutory redundancy payment from £21,570 to £22,530. All other rules remain the same.
2 years' service minimum
You must have at least 2 years' continuous service to qualify for statutory redundancy pay. Service below 2 years receives nothing.
Tax treatment
The first £30,000 of any redundancy payment (statutory or enhanced) is free from income tax and National Insurance. Amounts above £30,000 are subject to income tax at your marginal rate, but not NI. PILON (Payment in Lieu of Notice) is always taxable in full.
Frequently Asked Questions
The weekly pay cap is £751 for 2026/27 (up from £719 in 2025/26). The maximum statutory redundancy payment is 30 weeks × £751 = £22,530. Your actual statutory entitlement may be less depending on your age and years of service.
Yes. The weekly pay cap increased from £719 to £751 from 6 April 2026, as set by The Employment Rights (Increase of Limits) Order 2026. This means the maximum statutory payout rises from £21,570 to £22,530. The qualifying period (2 years) and age-banded multipliers remain the same.
The first £30,000 of redundancy pay is exempt from income tax and National Insurance. Statutory redundancy pay is usually well below this threshold, so it's almost always tax-free. Any amount above £30,000 is taxable as income at your marginal rate.
Each period of continuous employment is assessed separately. If you've worked for two different employers, you cannot combine service. If you've returned to the same employer after a break, only service since the most recent re-joining date usually counts, unless the break was short.
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Understand median UK pay - relevant when assessing whether your redundancy pay is capped.
Read guideNational Insurance Rates 2026/27: What You Pay and What It Gets You
Redundancy pay above £30,000 is subject to income tax. Here's how the rates apply.
Read guideWas this calculator helpful?
Official Rates Used
This calculator uses official HMRC rates for 2026/27. View the current rates at GOV.UK:
Rates last verified:
Disclaimer: This calculator provides estimates based on standard HMRC rates for 2026/27. Results may vary based on individual circumstances. This is not financial advice. Always consult a qualified accountant or CIMA-qualified financial adviser for personal tax matters.