How is UK Statutory Redundancy Pay calculated?

Statutory Redundancy Pay is calculated based on age and years of service (up to 20 years max): 0.5 week's pay for each year under 22; 1 week's pay for each year between 22 and 40; and 1.5 week's pay for each year aged 41 and over, subject to a statutory weekly cap of £700.

Is redundancy pay tax-free in the UK?

Yes. Statutory redundancy payments (and non-statutory ex-gratia redundancy payments) up to £30,000 are 100% tax-free. Any redundancy amount above £30,000 is subject to Income Tax.

How is UK Statutory Redundancy Pay calculated?

Statutory Redundancy Pay is calculated based on age and years of service (up to 20 years max): 0.5 week's pay for each year under 22; 1 week's pay for each year between 22 and 40; and 1.5 week's pay for each year aged 41 and over, subject to a statutory weekly cap of £700.

Is redundancy pay tax-free in the UK?

Yes. Statutory redundancy payments (and non-statutory ex-gratia redundancy payments) up to £30,000 are 100% tax-free. Any redundancy amount above £30,000 is subject to Income Tax.

Home/Uk/Statutory Redundancy Pay Calculation Tool

DWP & ERA 1996£700 Weekly Cap£30,000 Tax-Free

Statutory Redundancy Pay Calculator 2026

Calculate legal Statutory Redundancy Pay entitlement based on age multipliers (0.5x, 1.0x, 1.5x), the £700 weekly cap, and the £30,000 HMRC tax exemption.

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