Statutory redundancy pay calculator
Calculate UK statutory redundancy pay based on age, service years and weekly pay up to £700 cap. 100% tax-free under £30,000 limit.
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In the UK, the first £30,000 of redundancy payment is completely exempt from income tax and National Insurance deductions. Any accrued holiday pay or payment in lieu of notice (PILON) remains subject to normal PAYE deductions.
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About this tool
Calculate your legal minimum statutory redundancy payment under UK employment legislation. Based on age, continuous service (max 20 years), and weekly pay (capped at £700/week).
How to use it
- 1 Enter your current age (minimum 18).
- 2 Enter the number of full years of continuous service completed (up to a maximum of 20 years).
- 3 Enter your gross weekly pay before tax and deductions.
Questions
Is statutory redundancy pay tax-free?
Yes. The entire statutory redundancy payment is 100% tax-free in the UK because statutory redundancy never exceeds the £30,000 tax-free allowance.
Who is entitled to statutory redundancy pay in the UK?
You qualify if you are an employee who has been with your employer for at least 2 full continuous years. Self-employed workers, contractors, and agency staff are not eligible.
What is the statutory weekly pay cap?
From 6 April 2024, statutory weekly redundancy pay is capped at £700 per week (maximum statutory payout of £21,000 for 20 years of service).
Is redundancy pay taxable in the UK?
The first £30,000 of redundancy pay is completely exempt from UK income tax and National Insurance. Payments above £30,000, as well as pay in lieu of notice (PILON) and accrued holiday pay, are taxed normally.
Is my data uploaded?
No. This tool runs in your browser, so your text and files never reach our server.
Is this tool free?
Yes. It’s free to use with no sign-up and no limits for normal use.
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