If you are losing your job, a redundancy calculator can estimate your statutory payment. The figure depends on your age, complete service years, and gross weekly pay. Your contract may give you more than the statutory minimum.
For 2026/27, statutory pay in England, Scotland and Wales uses age, complete service years, and weekly gross pay. Weekly pay is capped at £751, and service at 20 years. Northern Ireland uses a £783 weekly cap, so the maximum payment there is higher.
| Key point | England, Scotland and Wales | Northern Ireland |
|---|---|---|
| Minimum service | Usually 2 years | Usually 2 years |
| Weekly pay cap from 6 April 2026 | £751 | £783 |
| Maximum service counted | 20 years | 20 years |
| Maximum statutory payment | £22,530 | £23,490 |
| Age under 22 | 0.5 week per full year | 0.5 week per full year |
| Age 22 to 40 | 1 week per full year | 1 week per full year |
| Age 41 or over | 1.5 weeks per full year | 1.5 weeks per full year |
Key takeaways
| What to remember | Why it matters |
|---|---|
| Your age matters for each complete service year | Different age bands earn different weeks of pay |
| Only 20 service years can count | Longer service cannot increase the statutory calculation beyond this limit |
| Great Britain and Northern Ireland have different caps | Your location affects the maximum weekly amount |
| Enhanced schemes can pay more | Your contract may improve on the legal minimum |
| Notice and holiday pay are separate | They should not be confused with the statutory award |
| Tax treatment varies by payment type | Not everything in your final package gets the same tax treatment |
How the redundancy calculator works in 2026/27
The statutory formula assigns statutory weeks to each complete year of service. Years worked under age 22 receive half a week. Ages 22 to 40 receive one week, while years from age 41 receive one and a half weeks.
You multiply those weeks by the weekly pay figure allowed under the rules. For Great Britain, weekly pay cannot exceed £751 after 6 April 2026. The maximum possible statutory payment is £22,530.
| Age during each complete service year | Weeks of pay credited |
|---|---|
| Under 22 | 0.5 week |
| 22 to 40 | 1 week |
| 41 or over | 1.5 weeks |
Current UK statutory limits for 2026/27
England, Scotland and Wales share the £751 weekly limit for the current rate year. Northern Ireland sets its own £783 limit from 6 April 2026. That produces a higher maximum statutory award of £23,490 in Northern Ireland. The official GOV.UK redundancy pay calculator confirms the £751 weekly cap and the £22,530 maximum that apply in Great Britain from 6 April 2026.
These caps matter when your normal weekly earnings are higher. Someone earning £1,000 weekly would still use the applicable statutory cap. An employer can still provide a more generous contractual scheme.
How to calculate your statutory payment
You need your birth date, employment start date, relevant leaving date, and gross weekly pay. Exact dates matter because your age can change during a long period of employment. The calculation also works backwards from the relevant date.
- Count your full years of continuous service, up to 20 years.
- Assign each counted year to the correct age band for that year.
- Add the resulting statutory weeks together.
- Apply your gross weekly pay, subject to the current regional cap.
- Compare the result with enhanced terms in your contract or staff handbook.
Worked example
Assume someone is 45, has 12 full years of service, and earns £600 each week. Eight counted years fall within ages 22 to 40, while four fall from age 41. The total is 14 weeks, giving an estimated statutory payment of £8,400.
| Calculation part | Result |
|---|---|
| 8 years × 1 week × £600 | £4,800 |
| 4 years × 1.5 weeks × £600 | £3,600 |
| Estimated statutory total | £8,400 |
The age split can change when you use exact employment dates. An official tool may therefore differ from a rough mental calculation. Use your actual dates before relying on an estimate.
Who qualifies for statutory pay?
You normally need employee status and at least two years of continuous service. The employment must also end in circumstances that qualify under the statutory rules. Agency workers and some other worker categories may not have the same entitlement.
A suitable alternative role can also affect your payment rights. Refusing a genuinely suitable role without good reason may put the statutory payment at risk. Suitability can depend on pay, location, terms, duties, skills, and family circumstances. If that judgement is contested, Justic’s Find a Lawyer resources can point you towards professional employment advice.
Which weekly pay figure should you use?
For Great Britain, weekly pay is generally based on average earnings before your notice was given. The calculation usually looks at a 12-week reference period. Contractual bonuses, commission, or guaranteed overtime can sometimes form part of the figure.
Family-related leave needs extra care because reduced leave pay should not automatically lower the calculation. Normal contractual gross weekly pay should apply during qualifying family-related leave. This can cover several forms of parental and caring leave.
Statutory pay versus an enhanced employer package
The statutory amount is the legal minimum for an eligible employee. Your employment contract or workplace scheme may promise a higher amount. Some employers also offer enhanced terms during voluntary job-loss programmes.
Check the written offer before assuming the statutory figure is your entire package. Compare your employer’s calculation with your service record and contractual terms. Ask for a written breakdown if any figure is unclear.
Is the payment tax-free?
Genuine termination compensation can receive favourable tax treatment, but payment types are treated differently. The first combined £30,000 of qualifying termination payments is usually tax-free. Amounts above that threshold can be taxable.
Unpaid wages, holiday pay, bonuses, and payment instead of notice are normally treated as earnings. Tax and National Insurance can therefore apply to those amounts. Check the breakdown before applying the £30,000 rule to your whole final payment.
Notice pay and holiday pay are separate
Your statutory award does not replace notice pay. In Great Britain, statutory notice generally increases with service. It reaches 12 weeks once you have at least 12 years of service.
Your contract can provide a longer notice period than the statutory minimum. Unused holiday, outstanding wages, and some bonuses can also appear in your final payment. Those amounts follow separate rules and tax treatment.
When a calculator result needs a closer review
A simple estimate can miss facts that change the legal or financial position. Exact dates, variable pay, family leave, alternative roles, and contractual enhancements can all matter. Employer insolvency can also change how you claim unpaid sums.
| Situation to check | Why it may matter |
|---|---|
| Employer’s figure differs from yours | Dates, pay, or age bands may have been applied differently |
| Service dates are disputed | Only complete qualifying years are counted |
| An enhanced scheme is offered | Contractual terms may exceed the statutory minimum |
| Another role is offered | Suitability can affect entitlement |
| Notice or holiday pay is missing | These are separate sums |
| Employer cannot pay | Government insolvency claim routes may apply |
For workplace disputes, Justic’s no win no fee employment solicitors guide explains common funding structures and tribunal timing. Its litigation funding overview covers another funding route in some disputes.
What if your employer is insolvent or does not pay?
Government support may be available when an insolvent employer cannot meet qualifying employment debts. The Redundancy Payments Service can handle claims for certain statutory sums and other money owed. Separate limits can apply to wages, holiday, and notice compensation.
Official guidance also sets time limits for statutory claims after employment ends. GOV.UK states that employees have six months to apply for statutory payment. Keep your contract, payslips, notice letter, and employer calculations together.
Frequently asked questions
How much statutory pay will I get?
Your figure depends on age, complete years of continuous service, and eligible weekly pay. Service is capped at 20 years for the statutory calculation. The regional weekly cap can also limit the amount used.
Can I get statutory pay with less than two years of service?
You normally need at least two complete years with your employer. A contract or employer scheme may provide a payment sooner. Other employment rights can also apply when statutory pay is unavailable.
What is the maximum statutory payment in 2026/27?
The maximum is £22,530 in England, Scotland and Wales from 6 April 2026. Northern Ireland has a higher maximum of £23,490 for the same rate year. The difference reflects separate weekly statutory caps.
Is statutory pay taxable in the UK?
Qualifying termination compensation falls within the £30,000 tax exemption framework. Other elements, including notice pay and holiday pay, can still be taxable as earnings. Your final payslip should show how your employer treated each part.
Is a redundancy calculator always exact?
Treat a redundancy calculator as an estimate until your dates and pay details are confirmed. Contractual enhancements, unusual pay patterns, and alternative employment can change the practical result. Compare your estimate with the written calculation your employer provides.
What to do with your estimate
Use the estimate to check your employer’s written breakdown, rather than relying on it alone. Confirm your dates, weekly pay, contractual terms, notice entitlement, and unused holiday. Seek employment advice promptly if you still dispute the figures or process.
This guide reflects published 2026/27 statutory limits and general UK employment guidance. Individual contracts and personal circumstances can change the outcome. It provides general information and does not replace legal or tax advice.
