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Methodology

Great Britain Statutory Redundancy Pay methodology

Calculate Great Britain statutory redundancy pay using reviewed rates from 6 April 2026. Scope: Great Britain statutory redundancy pay, 6 April 2026 through 5 April 2027. Official GOV.UK statutory redundancy-pay guidance and 2026 rates captured and reviewed 27 July 2026.
Duc Nguyen X.By Duc Nguyen X.· Founder, Wage101Last reviewed: View update historyMethodology

Educational only: Work and pay decision support, not tax, legal, financial or career advice.

Privacy: Calculations run locally; Wage101 does not receive your work or pay inputs.

Update policy: Reviewed when formulas or official dependencies change.

Scope: UK work and pay planning using your own assumptions.

1. Formulas and units

Statutory redundancy pay
statutoryPay = min(entitlementWeeks × cappedWeeklyPay, 22530)

Where

statutoryPay
Statutory redundancy pay (GBP)Source: Calculated output
Entitlement weeks
entitlementWeeks = completedYearsUnder22 × 0.5 + completedYearsAge22To40 + completedYearsAge41Plus × 1.5

Where

completedYearsUnder22
Completed service years while under 22 (years)Source: User assumption
completedYearsAge22To40
Completed service years from age 22 to 40 (years)Source: User assumption
completedYearsAge41Plus
Completed service years from age 41 (years)Source: User assumption
entitlementWeeks
Entitlement weeks (weeks)Source: Calculated output
Weekly pay used after cap
cappedWeeklyPay = min(averageWeeklyPay, 751)

Where

averageWeeklyPay
Average weekly pay (GBP/week)Source: User assumption
cappedWeeklyPay
Weekly pay used after cap (GBP/week)Source: Calculated output
Completed service years used
completedServiceYears = completedYearsUnder22 + completedYearsAge22To40 + completedYearsAge41Plus

Where

completedYearsUnder22
Completed service years while under 22 (years)Source: User assumption
completedYearsAge22To40
Completed service years from age 22 to 40 (years)Source: User assumption
completedYearsAge41Plus
Completed service years from age 41 (years)Source: User assumption
completedServiceYears
Completed service years used (years)Source: Calculated output

Money inputs and outputs use GBP. Pay, time, benefits and work-related costs use the units stated beside each input.

2. Worked example

Input assumptions

Two completed years under 22, ten from age 22 to 40 and three from age 41, with £800 average weekly pay.

Calculation and outputs

Example

Two completed years under 22, ten from age 22 to 40 and three from age 41, with £800 average weekly pay.

Statutory redundancy pay
11,640.50 currency units
Entitlement weeks
15.5
Weekly pay used after cap
751.00 currency units
Completed service years used
15

Age-band entitlement weeks, capped weekly pay and statutory award remain separate.

Interpretation

Use the result only for a confirmed eligible Great Britain redundancy in the reviewed 2026-27 period.

3. Validation and boundary checks

  • The worked example uses the same shared-work-logic engine as the interactive planner.
  • Unsupported eligibility, policy branches and out-of-range assumptions fail closed.
  • Result cards, trace, CSV, PDF and methodology bind to named engine result fields.

4. Assumptions and source classification

  • Statutory redundancy eligibility, Great Britain jurisdiction and the reviewed rate period are confirmed.
  • Completed service years are correctly allocated by age band within the latest twenty years.

Official dependencies used by this calculator are captured in the Wage101 evidence register and version-acknowledged in this page history. User-entered work and pay assumptions remain separate from those official inputs.

5. Limitations

  • Northern Ireland and eligibility decisions are excluded.
  • Service outside the latest twenty completed years and redundancy dates outside 6 April 2026 through 5 April 2027 fail closed.

This is educational decision support, not personalised tax, legal, financial or career advice. Check how the rules that apply in United Kingdom treat your work and pay circumstances, and seek qualified advice where appropriate.

6. Update and evidence policy

Registered family-level suites test formula invariants and example reconciliation; the release ledger records that coverage without claiming a separate oracle for every line of public copy. Registered official sources block dependent public workflows when their evidence or version acknowledgement is unavailable or invalid. Work and pay inputs remain user-supplied because they vary by person, job and contract.

Change history

  1. : Initial public release of the Great Britain Statutory Redundancy Pay — 2026 Rates planner and methodology.

Related reading

Use these practical guides to interpret the decision and its assumptions.

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