This free tool calculates the statutory redundancy pay liability for multiple employees at once, giving you a total programme cost summary. Updated for April 2026 rates.
Statutory redundancy pay is calculated per employee based on three factors: age, weekly pay (capped at £643 for 2025/26), and complete years of continuous service (maximum 20 years). The formula is:
The maximum statutory redundancy payment per employee is £19,290. Statutory redundancy pay is tax-free for the employee and deductible as a business expense for the employer.
Enter each at-risk employee's age, weekly pay, and years of service. The calculator will return the individual statutory entitlement for each person and a grand total for the programme. You can also see the breakdown by age band to understand where the largest individual liabilities fall.
Remember that statutory redundancy pay is only part of your total liability. You also need to budget for: notice pay (or PILON) for each employee; accrued but untaken holiday pay; and any enhanced redundancy pay promised in employment contracts or company policies. Enhanced contractual redundancy pay can significantly exceed the statutory minimum.
Use the total cost figure from this calculator alongside our step-by-step process guide and letter templates to plan and document your programme. Our collective redundancy guide applies if you are making 20 or more redundancies.