If you are planning redundancies, an early estimate of statutory redundancy pay can help you budget and answer employees’ questions. The amount depends on the employee’s age during each complete year of service, continuous service and weekly pay. Employees with at least two years’ continuous service will normally qualify if made redundant, subject to the statutory rules.
How to Use the Redundancy Pay Ready Reckoner
Our redundancy ready reckoner is a downloadable grid. Find the employee’s age and complete years of service to see the number of weeks’ pay, then multiply by the employee’s weekly pay, subject to the statutory cap. It is an estimate, not a calculation of all final payments.
Open the redundancy ready reckoner PDF
Statutory Redundancy Pay Limits from April 2026
For redundancies on or after 6 April 2026, weekly pay is capped at £751 for this calculation and the maximum statutory redundancy payment is £22,530. No more than 20 years’ service can be counted. Check the relevant limit when the redundancy takes effect, as it is reviewed periodically.
Worked Example
An employee aged 24 with four complete years of continuous service would ordinarily have three weeks’ statutory redundancy pay under the age-related formula. If their qualifying weekly pay is £500, the estimate is £1,500. If their weekly pay exceeds the statutory cap, use the capped figure. Individual histories and dates can change the result.
What Redundancy Pay Does Not Include
The ready reckoner does not calculate notice pay, accrued but unused holiday, contractual or enhanced redundancy pay, or the total cost of a restructure. Check those separately and give each employee a written breakdown.
The first £30,000 of combined qualifying redundancy and other termination payments is usually income-tax free; this does not include wages, holiday pay or taxable notice pay. Check the payment breakdown with payroll.
Planning Redundancies?
Ask Pure HR to check a calculation
Read the employer redundancy guide
