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Tax & Salary · Apr 2025 cap

Statutory Redundancy Pay Calculator

If you’ve worked somewhere two years or more and your role is being made redundant, you’re entitled to a statutory payment. This is the legal minimum — many employers pay more.

yrs
yrs
£

Statutory redundancy

£7,190

Tax-free up to £30,000.

Breakdown

  • Weeks owed (8 yrs counted)
    £10
  • Capped weekly pay
    £719
  • Statutory payment
    £7,190
  • Tax-free portion
    Above £30k is taxed
    £7,190

How we calculated your result

Each completed year of service is weighted by your age that year: half a week under 22, one week 22–40, one-and-a-half weeks 41+. Weekly pay is capped at £719 (Apr 2025), and only 20 years of service count — so the absolute statutory ceiling is £21,570.

Official UK rules in simple English

  • You need at least 2 years’ continuous service.
  • Weekly-pay cap rises each April — currently £719.
  • First £30,000 of any redundancy payment is tax-free; balance is taxed as income.
  • National Insurance isn’t due on statutory redundancy.

Common pitfalls to watch out for

  • ⚠ Contractual ≠ statutory

    Many employers offer enhanced packages. Statutory is the floor — check your contract or staff handbook.

  • ⚠ Notice pay is separate

    You’re also entitled to statutory notice (1 week per year of service, capped at 12 weeks) — paid on top.

  • ⚠ PILON is taxable

    Pay-in-lieu-of-notice is treated as normal earnings — full Income Tax and NI.

Frequently asked questions

What if I’m offered alternative employment?
If suitable and you unreasonably refuse, you may lose redundancy rights. Use the 4-week trial period to test it.
Can I be made redundant on maternity leave?
Yes — but you have priority for any alternative roles, and dismissal must be genuinely about the role, not the leave.

Statutory minimum. Check ACAS or take legal advice for complex cases.

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