Statutory redundancy · 2025-26
Statutory Redundancy Pay Calculator 2025-26
Age + years of service + weekly pay → the statutory minimum payment. Capped at 20 years of service and £719/week — same methodology as gov.uk.
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Common questions
- Who qualifies for statutory redundancy pay?
- Employees with at least 2 years of continuous service. Casual workers and the genuinely self-employed don't qualify (different category in employment law). Directors who are also employees do — but only on the employee role, not director-level fees.
- What's the £719/week cap for?
- Even if the employee earned more, statutory redundancy uses a capped weekly figure (£719 in 2025-26). So a £150k earner with 10 years of service receives 10 × 1.5 × £719 = £10,785 statutory minimum. The employer can pay more contractually — many do.
- Is redundancy pay tax-free?
- The first £30,000 is tax-free. Above that, anything genuinely 'redundancy' is still tax-free up to £30k; payments in lieu of notice (PILON) and contractual bonuses are taxed normally. The split matters — get the offer letter wording right.
- What's the maximum statutory redundancy?
- 20 years of service × 1.5 weeks × £719 = £21,570 statutory maximum. Anything beyond is enhanced/contractual. If you're an SME planning a restructure, model your liability around this number per long-tenured staff member.
- How is age factored in?
- Half a week for each year served while under age 22, one week for each year aged 22-40, one and a half weeks for each year aged 41+. The calc walks year-by-year through the employee's service to apply the right band per year.