Redundancy pay calculator
2 minutes to complete
If you’re being made redundant, or think you might be at risk, there are some steps you need to take. Our redundancy pay calculator can help.
It’s important to understand your rights, work out what you are owed, see how long your money will last, check your insurance and see what benefits you’re entitled to.
How to use our Redundancy pay calculator
In just a few minutes, we’ll give you:
specific guidance about what you can do next
an easy-to-follow guide to let you work out exactly where you stand financially
a summary of legal rights in redundancy.
You will need to know:
your current salary
how long you’ve worked for your current employer (your start date).
We’ll also ask you questions about your age and when you may be leaving your current job.
Being made redundant can be stressful. Our guide Redundancy pay explains everything you need to know including what statutory redundancy pay is, your rights, what to do if your employer doesn’t pay and what happens to any unused holiday.
How our Redundancy pay calculator works
We ask you up to seven quick questions and use your answers to work out how much you might be entitled to in redundancy pay.
Understanding your redundancy pay result
It will estimate how long any redundancy pay you’re entitled to will last, based on your salary. And it will give you tailored help and next steps.
What is statutory redundancy pay?
This is the legal minimum – your employer must pay you at least this amount if you are eligible.
What is contractual redundancy pay?
You may get more than the legal minimum if your employment contract allows it. Check your contract or your staff handbook.
What to do next after redundancy
You’ve got options – it’s important to check if you are due a tax refund.
See our guide on Claiming your tax rebate after losing your job.
While redundancy pay will help you with a loss of earnings while you search for alternative income, reviewing your budget will help you control your finances.
See our guide to Review your budget after a drop in income.
And you can check if you are eligible for benefits using our Benefits calculator.
Get help with redundancy and take action
Check how you can make the most of your redundancy pay in our guide to Making the most of your redundancy pay.
Redundancy FAQs
If you’ve been in the same job for at least two years, your employer must pay you redundancy money.
You have the right to redundancy pay if you are being made redundant and have worked continuously for your employer for two years or more. It’s the legal minimum.
How much you’ll get depends on how long you’ve been in the job, how old you were in each year you worked there and your current salary.
Yes, statutory pay is the legal minimum your employer must pay if you’re eligible for it. But instead, you may get contractual redundancy pay – this is where your employer gives you more – which could mean a bigger lump sum. Or it might mean you get a payout even if you’ve worked there for less than two years.
The maximum for statutory redundancy pay is £21,570 in England, Scotland and Wales (£22,470 in Northern Ireland) – this is for the year 2025/26. The maximum length of service for the calculation is 20 years.
The first £30,000 of redundancy pay is tax-free. But some parts of your redundancy package – such as pay in lieu of notice, holiday pay or bonuses – will be taxed as regular income. See our guide Do you have to pay tax on your redundancy pay?
You may be able to claim a tax rebate or refund. See our guide on Claiming your tax rebate after losing your job.
Talk to your employer first to get a breakdown of the calculation. Or try your trade union rep if you have one. You can complain using your employer’s grievance procedure. If it’s not resolved, help is available – see our guide on Redundancy pay.
You are not eligible for statutory redundancy pay but your employer may offer you contractual redundancy pay. Check your contract or employee handbook.
See our guide Your legal rights when facing redundancy.
If you have holiday owed, your employer has to either let you take it before you leave or pay you for it.
Notice pay (pay in lieu of notice – PILON) is when you can leave earlier than your notice period, but your employer pays you until your contract ends. You’ll be taxed as normal on this pay, and as it’s payment for your work, it’s separate to any compensation payments for redundancy.