UK Statutory Redundancy Pay & Notice Period Calculator
Calculate your exact tax-free UK Statutory Redundancy Pay (up to £30,000 tax-free) and statutory notice pay under the Employment Rights Act 1996.
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2. Your result Live Output
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3. How the rule works
Who this is for
Employees in England, Scotland and Wales who are being made redundant and want to check statutory redundancy pay and statutory notice.
Contractual redundancy schemes are often more generous; check your contract or staff handbook.
What to have ready
- Your start date and the date your employment will end.
- Your date of birth.
- Your gross weekly pay.
- Your contract, for any enhanced redundancy or longer notice terms.
The rule
Under section 162 of the Employment Rights Act 1996, an employee with at least two years' continuous service who is dismissed for redundancy is entitled to half a week's pay for each full year worked under age 22, one week's pay for each full year aged 22 to 40, and one and a half weeks' pay for each full year aged 41 or over. Only the last 20 years count, and weekly pay is capped. The cap is uprated every April; it was £719 for dismissals from 6 April 2025.
Separately, section 86 sets minimum notice: one week after one month's service, then one week for each complete year of service from two years, up to 12 weeks. Notice pay and holiday pay are based on actual pay and are taxable; statutory and contractual redundancy pay up to £30,000 is generally free of income tax and National Insurance.
Read the official text:
- Employment Rights Act 1996, section 162 (legislation.gov.uk)
- Employment Rights Act 1996, section 86
- GOV.UK: calculate your statutory redundancy pay
Worked example: six years' service at age 47
Sophie is 47, earns £42,000 a year and has six full years' service, all after her 41st birthday. She is dismissed in October 2025.
Actual weekly pay = £42,000 / 52 = £807.69 Capped weekly pay = £719 Weeks owed = 6 years x 1.5 = 9 weeks Redundancy pay = 9 x £719 = £6,471 Statutory notice = 6 weeks at her actual weekly pay
Common mistakes
- Using the cap for notice pay. The cap applies only to statutory redundancy pay.
- Counting part years. Only complete years of service count.
- Applying one age band to every year. Each year is counted at the age you were during it.
- Forgetting that you must have two years' service at the termination date.
Limits of this tool
- This covers Great Britain; Northern Ireland has its own legislation and cap.
- The weekly cap changes each April, so check the figure for your dismissal date.
- Contractual schemes, unfair dismissal and consultation rules are outside this calculation.
Sources were last checked in October 2026. Statutes are amended often; if the official text differs from this page, the official text controls.
4. Clear Next Steps & Statutory Action Plan
- Check that you have at least two complete years of service.
- Count your full years in each age band and apply the current weekly cap.
- Ask your employer for a written breakdown of redundancy pay, notice and holiday pay.
5. Frequently Asked Statutory Questions (UK Employment Rights Act 1996 s.86 (Notice) & s.162 (Statutory Redundancy Pay))
What is the weekly pay cap?
It is set each April. For dismissals from 6 April 2025 it was £719; check GOV.UK for the figure that applies to your date.
Is redundancy pay taxed?
Redundancy pay up to £30,000 is generally tax-free. Pay in lieu of notice and holiday pay are taxed as earnings.
How many years count?
A maximum of 20 years, counting back from the end of employment.
Do I still get notice pay if I am made redundant?
Yes. Statutory notice under section 86 applies to any dismissal, including redundancy, and is paid at your normal rate. Your employer can pay you in lieu of notice if your contract allows it.
Is there a time limit to claim redundancy pay?
You should ask your employer in writing, or bring a claim to an employment tribunal, within six months of the date your employment ended.
Do I have to accept suitable alternative work?
If your employer offers suitable alternative employment and you unreasonably refuse it, you can lose statutory redundancy pay. You are entitled to a four-week trial period in the new role.