Redundancy calculator worked example
A redundancy pay calculator for someone aged 45 with 15 complete years at £600 a week gives 17 weeks and £10,200 statutory redundancy pay. That is under the £30,000 tax-free threshold.
Count backwards from the redundancy date. The rate depends on age at the start of each complete year: 1.5 weeks at 41 or over, 1 week from 22 to 40, and 0.5 weeks under 22. Only complete years count, and only the latest 20. Under 2 years, statutory redundancy pay is zero. A contract can pay more. This page is the statutory minimum.
Weekly cap from 6 April 2026
| England, Wales, Scotland | Northern Ireland | |
|---|---|---|
| Cap on a week's pay | £751 | £783 |
| Maximum (30 weeks) | £22,530 | £23,490 |
| Applies from | 6 April 2026 | 6 April 2026 |
The England, Wales and Scotland figures are on GOV.UK and in the Employment Rights (Increase of Limits) Order 2026. Northern Ireland is on nidirect and in the Employment Rights (Increase of Limits) Order (Northern Ireland) 2026. The age bands are in section 162 of the Employment Rights Act 1996. A 45-year-old with 15 years has 4 years at 1.5 weeks and 11 years at 1 week, which is the nidirect worked example. Their £600 wage is under the cap, so the cap is not used. 17 × £600 = £10,200.
£30,000 and pay in lieu of notice
Statutory redundancy and extra severance share one £30,000 tax-free allowance. The amount above £30,000 is taxed as employment income. You do not pay employee National Insurance on that slice. Your employer pays Class 1A National Insurance on it. Pay in lieu of notice, including post-employment notice pay inside a settlement, is normal earnings: income tax and employee and employer National Insurance, and it does not use the £30,000. Holiday pay, wages and bonuses in the final payslip are earnings too. See GOV.UK on tax when you leave a job. If you enter a PILON or a payment above £30,000, the tax lines estimate the extra tax from the 2026/27 bands. They are not a payroll calculation.
Frequently asked questions
How much is statutory redundancy pay from 6 April 2026?
For a redundancy on or after 6 April 2026 in England, Wales or Scotland, a week’s pay is capped at £751 and the maximum statutory payment is £22,530. You need 2 complete years’ service. Length of service counts for at most 20 years.
What is the redundancy calculator weekly cap in Northern Ireland?
Northern Ireland uses its own cap. From 6 April 2026 a week’s pay is capped at £783 and the maximum statutory redundancy pay is £23,490. The age bands are the same.
Is redundancy pay tax free?
The first combined £30,000 of statutory redundancy and enhanced severance is normally free of income tax. Pay in lieu of notice is taxed as earnings and does not use that £30,000. Your employer pays Class 1A National Insurance on the slice above £30,000.