About

The calculator applies the statutory redundancy pay formula set out in the Employment Rights Act 1996. You enter your employment start date, last day of employment, date of birth, and gross annual salary. The calculator works backwards through your service history year by year, applying the correct age band multiplier for each year, and caps your weekly pay at the current statutory limit. It then shows your total statutory entitlement, any gap between that figure and your employer's offer, estimated notice pay if applicable, estimated holiday pay if days are provided, and your tribunal deadlines.

The calculation follows the exact rules from the Employment Rights Act 1996. The weekly pay cap is updated each April when the government publishes the new Employment Rights (Increase of Limits) Order — the current cap is £751 per week, which took effect on 6 April 2026. The age band multipliers and service cap of 20 years are set by the same legislation and do not change annually. We review the figures each April and update the calculator within days of the new order being published.

The calculator works out your statutory minimum entitlement. It does not calculate enhanced redundancy pay from your contract or staff handbook — that depends on your specific terms, which vary by employer. It also does not account for variable pay such as irregular bonuses, commission, or overtime that is not contractually guaranteed, as these require a 12-week average calculation that depends on your actual payslips. If your pay varies week to week, treat the figure as a guide and check your payslips carefully.

The Redundancy Calculator is an information tool, not a financial adviser or law firm. The figures it produces are based on the statutory formula and the information you enter — they are not a guarantee of what you will receive, and they do not constitute legal or financial advice. Employment situations can be complex, particularly where settlement agreements, TUPE transfers, or multiple employers are involved. If your situation is anything other than straightforward, we recommend speaking with a qualified employment solicitor before taking action. Many offer free initial consultations.

The letter the calculator generates is a template based on your inputs and the current statutory framework. It is written to be professional and legally grounded — citing the Employment Rights Act 1996 and the correct figures for your situation — but it is not a substitute for legal advice and should not be treated as one. The disclaimer at the foot of every letter makes this clear.