Statutory Redundancy Pay Calculator

What is Statutory Redundancy Pay?

Statutory Redundancy Pay (SRP) is the minimum legal amount your employer must pay you if you are made redundant in the UK. The amount depends on your age, length of continuous service, and weekly pay (subject to a statutory cap).

Who qualifies?

To receive statutory redundancy pay you must:

• Be an employee (not a worker or self-employed)
• Have at least 2 years of continuous service with your employer
• Have been dismissed by reason of redundancy

How is Statutory Redundancy Pay calculated?

The calculation works backwards from your dismissal date, counting up to 20 complete years of service. For each complete year, you receive:

• 1.5 weeks' pay for each year worked while aged 41 or over
• 1 week's pay for each year worked while aged 22–40
• ½ week's pay for each year worked while aged under 22

The maximum statutory weekly pay that can be used in the calculation is £719 (from April 2024). The maximum total statutory redundancy payment is therefore £21,570.

Is Statutory Redundancy Pay taxable?

Statutory redundancy pay is free from income tax and National Insurance up to £30,000. If the total of all termination payments (including any enhanced redundancy pay, pay in lieu of notice, and ex-gratia payments) exceeds £30,000, the excess is subject to income tax (but not employee National Insurance contributions).

Enhanced redundancy pay

Many employers offer enhanced redundancy pay above the statutory minimum. This is typically agreed in your employment contract or collective agreement. Enhanced payments above the statutory minimum still benefit from the £30,000 tax-free threshold when combined with your SRP.

Notice pay and other entitlements

In addition to redundancy pay, you may also be entitled to your contractual or statutory notice period, accrued but untaken holiday pay, and any outstanding wages. This calculator covers statutory redundancy pay only.