Redundancy Pay Calculator
Estimate statutory redundancy pay, check likely eligibility, see how age and service affect the calculation, and compare illustrative enhanced redundancy examples.
Calculator Inputs
Year-By-Year Breakdown
| Age During Service | Multiplier | Weeks Earned | Gross Value |
|---|---|---|---|
| Enter your details to see how the figure is built. | |||
Comparison Module
Illustrative examples only. Enhanced redundancy terms depend on your employer, contract, policy or settlement.
| Package | Estimated Value | Difference |
|---|---|---|
| Statutory Redundancy | - | - |
| Enhanced +25% | - | - |
| Enhanced +50% | - | - |
| Enhanced +100% | - | - |
Redundancy Timeline
Selection for redundancyEmployer identifies roles at risk.
Consultation periodYou should be told the reason and have chance to respond.
Notice periodNotice pay may be worked or paid in lieu.
Redundancy calculationAge, service and weekly pay are used for statutory pay.
Final paymentCheck redundancy pay, notice pay, holiday pay and deductions.
Appeal or disputeRaise concerns promptly if the calculation or process looks wrong.
What Is Redundancy Pay?
Redundancy pay is compensation that may be owed when an employee loses their job because their role is no longer needed. Statutory redundancy pay is the legal minimum. Some employers offer enhanced redundancy pay above that minimum.
Who Qualifies For Statutory Redundancy Pay?
Employees generally need at least two full years of continuous service to qualify for statutory redundancy pay. Eligibility can depend on employment status, the reason for dismissal and whether a suitable alternative role was offered.
How Redundancy Pay Is Calculated
The statutory calculation uses full years of service, age during each year of service and gross weekly pay. Years under age 22 count at half a week's pay, ages 22 to 40 count at one week's pay, and age 41 or over counts at one and a half weeks' pay.
Redundancy Pay Formula For Excel
A reliable spreadsheet should calculate each completed service year separately because the age multiplier can change during employment. Put current age in B1, counted full years of service (maximum 20) in B2, and the lower of gross weekly pay or the current statutory cap in B3. In the first service-year row use =$B$1-$B$2+ROW(A1) for the age reached during that year, =IF(A6<22,0.5,IF(A6<=40,1,1.5)) for the weeks multiplier, and =B6*$B$3 for that year's payment. Fill the rows down for the counted years and sum the payment column.
Check the spreadsheet total against the calculator's year-by-year breakdown. The calculator deliberately shows the entered weekly pay and warns about the statutory cap rather than silently substituting a figure that changes over time.
Statutory vs Enhanced Redundancy Pay
Statutory redundancy pay is the minimum entitlement. Enhanced redundancy pay may come from an employment contract, employer policy, collective agreement or settlement. Enhanced terms should be checked carefully because they may include conditions.
What Happens During A Redundancy Process?
A redundancy process usually involves selection, consultation, notice and final pay. Employees may be able to ask questions, challenge selection criteria, apply for alternative roles and appeal if the process appears unfair.
How To Check A Redundancy Offer
Ask for a written breakdown showing the termination date, each age band, full years counted, weekly pay used, the statutory cap applied, and any enhanced multiplier. Then separate the redundancy award from the other amounts due: use the Loss of Notice Pay Calculator for notice or PILON and the Final Pay Calculator for wages and accrued holiday. If an agreed sum is missing from the final payment, the Unpaid Wages Claim Letter Generator can help document the shortfall, but get advice about the correct legal route and deadline.
Frequently Asked Questions
How is redundancy pay calculated?
Statutory redundancy pay is based on age, full years of continuous service and weekly pay, with different week multipliers for different age bands.
Do I qualify for redundancy pay?
Employees usually need at least two full years of continuous service to qualify for statutory redundancy pay.
What is enhanced redundancy pay?
Enhanced redundancy pay is an employer scheme or agreement that pays more than the statutory minimum.
How many years count?
Statutory calculations usually count up to 20 full years of service.
Does part-time work count?
Part-time employees can qualify. The calculation uses weekly pay, so part-time pay affects the amount.
Is redundancy pay taxable?
Statutory redundancy pay is usually tax-free, and redundancy payments may be tax-free up to applicable limits. Check current guidance for your situation.
What if I disagree with the calculation?
Ask your employer for a written breakdown and seek advice from ACAS, Citizens Advice, a union or an employment adviser if needed.
Can I be made redundant while on leave?
Redundancy during leave can be legally complex. The process must still be fair and rights depend on the circumstances.
What happens if my employer goes bankrupt?
You may be able to claim certain payments from the government through the Redundancy Payments Service.
Can I claim redundancy and notice pay?
Yes, redundancy pay and notice pay are different entitlements and may both be relevant.
Does age affect redundancy pay?
Yes. Years worked under age 22, between 22 and 40, and aged 41 or over have different multipliers.
What weekly pay should I enter?
Enter gross weekly pay. Statutory weekly pay may be capped, so high earners should check the current government cap.
Can my employer offer more than statutory redundancy pay?
Yes. Employers may offer enhanced redundancy terms through contract, policy or settlement.
Does voluntary redundancy count?
Voluntary redundancy can still involve redundancy pay, but the package depends on the employer's terms and agreement.
Is this legal advice?
No. This calculator gives an estimate and general information only.
Sources
- GOV.UK calculate your redundancy pay
- GOV.UK redundancy rights
- GOV.UK – Working out weekly pay for redundancy and notice
- ACAS redundancy advice
Last updated: 2026-07-22. This page gives an estimate only and is not legal, tax, financial, or employment advice.