How to Calculate UK Redundancy Pay (Step by Step)

→ Open the UK Redundancy Pay Calculator

The 4 steps

1. Count full years of continuous service (max 20). Part-years don't count.
2. Band each year by the age you were during it, working back from your age now: 1.5 weeks (41+), 1 week (22–40), 0.5 week (under 22).
3. Cap your weekly pay at £751 (from 6 April 2026) — use the lower of your gross weekly pay or the cap.
4. Multiply total weeks × capped weekly pay.

Worked example

A 52-year-old with 12 full years, earning £820 gross a week:

• Working back from 52, eleven years fall in the 41+ band and one in the 22–40 band → (11 × 1.5) + (1 × 1) = 17.5 weeks.
• £820 is above the cap → use £751.
• 17.5 × £751 = £13,143.

A younger example

A 24-year-old with 3 full years, £500/week: year at 23→1 week, year at 22→1 week, year at 21→0.5 week = 2.5 weeks → 2.5 × £500 = £1,250.

Prefer to skip the arithmetic? The redundancy pay calculator applies the bands and cap automatically.

Frequently asked questions

What weekly pay figure do I use?

Your gross average weekly pay over the 12 weeks before you were given notice, capped at £751 (2026/27).

Do part-years count?

No — statutory redundancy pay counts only full years of continuous service, up to a maximum of 20.