Redundancy Guides
Everything you need to understand your redundancy rights and calculate what you are owed.
Redundancy pay in the UK comes in two distinct forms and confusing them is the most common reason people think they have been underpaid. Statutory redundancy pay is the legal minimum, calculated from your age, length of service and weekly pay, with both the weekly figure and the number of years subject to caps. Contractual or enhanced redundancy is whatever your employer has additionally agreed, and it is entirely separate.
The statutory calculation itself is mechanical: half a week's pay for each full year worked under 22, a full week for each year between 22 and 40, and a week and a half for each year from 41 onward, counted backwards from your leaving date and limited to a maximum number of years. What trips people up is which of their pay counts towards the weekly figure, and what happens when hours have varied.
Tax is the other area where expectations and reality diverge. Genuine redundancy payments are tax free up to a threshold, but payments in lieu of notice, holiday pay and any element that is really a bonus are treated as normal earnings and taxed accordingly. Two people receiving the same headline sum can take home noticeably different amounts depending on how it was structured.
All guides
Statutory Redundancy Pay 2026/27: New Weekly Cap and How to Calculate Your Entitlement
The weekly pay cap rose to £751 in April 2026. How age-band multipliers work and what the maximum payout is.
How Is Redundancy Pay Calculated? (UK 2026/27 Guide)
The complete formula for statutory redundancy pay, with worked examples for different ages and service lengths.
Redundancy Pay Tax-Free Allowance: What You Need to Know
The first £30,000 of a redundancy payment is usually tax-free. Here is how the allowance works and what counts towards it.
TUPE and Redundancy: Your Rights When Your Employer Changes
How TUPE regulations protect you when a business transfers, when redundancy under TUPE is automatically unfair, and what pay you are owed.
Working out your own figure
Read the guide that matches your situation, then use the calculator to produce your figure and check it against what your employer has offered. If the two disagree, the difference is usually either the weekly pay cap, the way part years have been counted, or an enhanced scheme being applied on top of the statutory minimum rather than instead of it.
This is general information, not legal advice. Redundancy sits alongside consultation obligations, notice periods and unfair dismissal protections that a calculator cannot assess. If you believe the process itself was wrong rather than just the arithmetic, ACAS provides free impartial guidance and is the right first call.
Jump straight to a tool: redundancy pay calculator, statutory redundancy guide, TUPE and redundancy rights.