Redundancy Pay Calculator UK 2025 — Statutory & Enhanced Pay, Notice & Total Package
If you are facing redundancy, you may be entitled to statutory redundancy pay under the Employment Rights Act 1996. Our enhanced calculator uses the 2024/25 weekly pay cap of £643 and also estimates your notice pay, holiday pay owed, and total redundancy package. Switch to Advanced mode for enhanced redundancy and tax calculations.
Based on 2024/25 statutory cap of £643/week. Max 20 years service. The first £30,000 of a redundancy payment is tax-free. PILON is always taxable. Your contract may offer enhanced redundancy. Always get written confirmation of all payments.
How Is Statutory Redundancy Pay Calculated?
Statutory redundancy pay under the Employment Rights Act 1996 is calculated using an age-banded multiplier applied to each full year of continuous employment (capped at 20 years), multiplied by your weekly pay (capped at £643 in 2024/25).
The Age-Banded Multiplier Formula
| Age at Redundancy | Multiplier Per Full Year of Service |
|---|---|
| Under 22 | Half a week's pay |
| 22 to 40 | One week's pay |
| 41 or over | One and a half week's pay |
The calculation works backwards from your age. So if you are 43 with 5 years' service: years at age 43 and 42 (age 41+) count at 1.5x; years at ages 41, 40, and 39 count at 1x. Maximum total entitlement is 30 weeks' pay (20 years at 1.5x).
The Weekly Pay Cap 2024/25
For redundancies from 6 April 2024, the statutory weekly pay cap is £643. If your actual gross weekly pay exceeds £643, only £643 is used in the calculation. Your employer may voluntarily pay enhanced redundancy above this — check your employment contract or any applicable collective agreement.
Who Qualifies for Statutory Redundancy Pay?
To qualify you must: (1) be an employee (not self-employed or a worker); (2) have at least 2 years of continuous employment with the same employer; (3) have been genuinely made redundant (job is no longer required), not dismissed for misconduct or resigned.
Who Is NOT Eligible?
- Employees with less than 2 years' continuous service
- Self-employed people and workers (as opposed to employees)
- Those dismissed for gross misconduct
- Those who resign (unless constructive dismissal applies)
- Those who unreasonably refuse a suitable alternative role offered by the same employer
Is Redundancy Pay Taxable?
The first £30,000 of a redundancy payment is completely free of income tax and National Insurance. Any amount above £30,000 is subject to income tax at your marginal rate. Payments in lieu of notice (PILON) are always taxable as earnings regardless of the amount.
What If Your Employer Refuses to Pay?
If your employer refuses to pay statutory redundancy pay, you have 6 months minus one day from your dismissal date to bring an Employment Tribunal claim. You must first contact ACAS for early conciliation before submitting your ET1 form. If your employer is insolvent, you can claim from the government's Redundancy Payments Service via the Insolvency Service.
Enhanced Redundancy Pay
Many employers offer enhanced redundancy packages above the statutory minimum — typically calculated on actual weekly pay without the cap, or for more than 20 years' service. Check your employment contract, staff handbook, or any applicable collective agreement. Enhanced packages are often negotiable, especially for long-serving employees.