Statutory Redundancy Pay Calculator UK 2025–26
Enter your age at dismissal, years of service, and weekly pay to calculate your statutory redundancy pay entitlement. The 2025–26 weekly pay cap of £700 is applied automatically.
How statutory redundancy pay is calculated
Statutory redundancy pay (SRP) is a minimum payment that employers must make to eligible employees who are made redundant. It is set by law and calculated using three factors: your age at dismissal, your length of continuous service, and your weekly pay.
The age multiplier
The multiplier varies by age during each year of service, counting backwards from the date of dismissal:
- Under 22: half a week's pay per year of service
- Ages 22–40: one week's pay per year of service
- 41 and over: one and a half weeks' pay per year of service
Because the multiplier is applied year by year counting backwards, a 45-year-old with 10 years of service gets a higher payment than a 38-year-old with 10 years of service, even if they have the same weekly pay.
Service and pay caps
Only the most recent 20 years of service count toward statutory redundancy pay. The weekly pay used in the calculation is capped at £700 for the 2025–26 tax year (this figure is reviewed annually by the government). This means the maximum statutory redundancy payment in 2025–26 is £21,000 (20 years × 1.5 weeks × £700).
Tax treatment
Statutory redundancy pay is tax-free up to £30,000. Given the statutory caps, SRP alone will never exceed this threshold. If your employer also pays enhanced redundancy or other termination payments, all these payments are combined when calculating the £30,000 exemption. Any amount above £30,000 is taxable as employment income.
Minimum qualifying period
Employees must have at least two years of continuous service with the same employer to qualify for statutory redundancy pay. Years of service before age 18 do not count. Part-time employees qualify on exactly the same basis as full-time employees.
Frequently asked questions
What is the statutory redundancy pay formula?
Statutory redundancy pay is calculated by counting backwards through your years of service from your dismissal date. For each complete year of service: half a week's pay for each year you were under 22; one week's pay for each year between 22 and 40; one and a half weeks' pay for each year you were 41 or over. Service is capped at 20 years and weekly pay at £700 for 2025–26.
Is statutory redundancy pay taxable?
Statutory redundancy pay is tax-free up to £30,000. If your total redundancy payment (including any enhanced redundancy pay from your employer) exceeds £30,000, the excess is subject to income tax. However, statutory redundancy pay alone is unlikely to exceed £30,000 given the service cap of 20 years and pay cap of £700/week — the maximum statutory payment is £21,000.
What is the maximum statutory redundancy pay in 2025–26?
The maximum statutory redundancy pay is £21,000 in 2025–26. This is achieved with 20 qualifying years of service, an age at dismissal of 41 or over for all years, and a weekly pay of £700 or more. The calculation would be: 20 years × 1.5 weeks × £700 = £21,000.
Can my employer pay more than the statutory amount?
Yes — many employers offer enhanced redundancy pay above the statutory minimum, particularly those with collective agreements or strong employment policies. Enhanced payments are often based on actual weekly pay without the £700 cap, and may use a higher multiplier or count more years of service. Enhanced redundancy pay above £30,000 is subject to income tax.
Do I qualify for statutory redundancy pay?
You must have at least 2 years of continuous employment with the same employer to qualify for statutory redundancy pay. You must also have been dismissed by reason of redundancy — not dismissed for misconduct or chosen to resign. Agency workers, self-employed contractors, and employees who volunteer for redundancy and leave before the notice period expires may not qualify.
Related calculators
This calculator provides estimates only. Results are based on the 2025–26 tax year. Credibrate is not a tax adviser. For personalised advice speak to a qualified accountant.