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Redundancy cost planner

Estimate statutory redundancy pay, notice pay and untaken holiday for each person in a proposed redundancy, then see the total for the team.

  • Free to use
  • No signup
  • April 2026 statutory caps
Use the calculator

Plan the cost of a redundancy

Add a row for each person who may be affected. The table keeps the three payments separate, and every figure shows its working.
Where do the employees work?

Enter age and complete years of service as they will be when employment ends. If you will pay in lieu of notice, count to the end of the statutory notice instead.

Operations lead
Account manager
Coordinator

£27,552estimated total for 3 people: statutory redundancy pay, notice pay and untaken holiday

Cost by person
PersonRedundancy payNotice payHoliday payTotal
Operations lead£9,012£10,200£680£19,892
Account manager£2,600£2,600£260£5,460
Coordinator£0£1,600£600£2,200
Team total£11,612£14,400£1,540£27,552

The working

Operations lead

  1. Age 45 with 10 complete years: 4 years at 41 or over × 1.5, 6 years at 22 to 40 × 1 = 12 weeks
  2. Statutory redundancy pay = 12 weeks × £751 (weekly pay of £850 capped) = £9,012
  3. Notice: statutory minimum 10 weeks, contract 12 weeks. Notice pay = 12 weeks × £850 = £10,200
  4. Holiday: 4 days × £850 ÷ 5 days a week = £680
  5. Total = £9,012 + £10,200 + £680 = £19,892

Account manager

  1. Age 30 with 5 complete years: 5 years at 22 to 40 × 1 = 5 weeks
  2. Statutory redundancy pay = 5 weeks × £520 = £2,600
  3. Notice: statutory minimum 5 weeks, no contractual notice entered. Notice pay = 5 weeks × £520 = £2,600
  4. Holiday: 2.5 days × £520 ÷ 5 days a week = £260
  5. Total = £2,600 + £2,600 + £260 = £5,460

Coordinator

  1. 1 complete year of service is under 2: no statutory redundancy pay
  2. Notice: statutory minimum 1 week, contract 4 weeks. Notice pay = 4 weeks × £400 = £1,600
  3. Holiday: 6 days × £400 ÷ 4 days a week = £600
  4. Total = £0 + £1,600 + £600 = £2,200

Great Britain from 6 April 2026: weekly pay capped at £751 and statutory redundancy pay at £22,530 per person.

Worth knowing

  • Collective consultation applies when 20 or more redundancies are proposed at one establishment within 90 days. Count everyone proposed in that window, not only the people entered here.
  • If you pay in lieu of notice, or give less than the statutory minimum, service and age are counted to the date statutory notice would have ended. Enter them as at that date, because it can add a year or move someone into an older age band.
  • Statutory notice depends on service on the day notice is given. Tick the anniversary box for anyone whose work anniversary falls during the notice period, because their minimum is one week shorter.
  • Notice pay, including a payment in lieu of notice, and holiday pay are taxed and subject to National Insurance like wages. Statutory redundancy pay is usually tax-free within a £30,000 limit shared with other non-contractual termination payments, and the employer pays Class 1A National Insurance above it. This is general information, not tax advice.
  • Use gross weekly pay. Where pay varies with overtime, bonus or commission, a week's pay is an average, and the method differs for redundancy, notice and holiday pay.
  • Operations lead: weekly pay is above the £751 cap, so redundancy pay uses the cap. Notice and holiday pay use the full amount.
  • Coordinator: under 2 years' service, so no statutory redundancy pay. Notice and holiday pay still apply.

Basis: Statutory redundancy pay after 2 years' continuous service: half a week's pay for each full year under 22, one week from 22 to 40 and one and a half weeks from 41, counting up to 20 years and a capped week's pay. Statutory minimum notice and accrued holiday are added at the pay entered. The caps apply where employment ends on or after 6 April 2026 and are reviewed each April. Rules checked .

GOV.UK redundancy payAcas redundancy payEmployment Rights Act 1996, section 162nidirect redundancy payGOV.UK redundancy consultationsnidirect redundancy consultationGOV.UK tax on termination payments
The method

How the cost is worked out

Each payment follows its own rule, so you can see which one drives the total.
  1. 1

    Count the qualifying years

    Statutory redundancy pay needs 2 years' continuous service. Each full year counts at half a week's pay under 22, one week from 22 to 40 and one and a half weeks from 41, up to the most recent 20 years.

  2. 2

    Apply the weekly cap

    A week's pay for redundancy is capped at £751 in Great Britain and £783 in Northern Ireland. The most one person can receive is £22,530 or £23,490.

  3. 3

    Add notice and holiday

    Notice pay uses the longer of the statutory minimum, counted on the day notice is given, and the contract. Untaken holiday is paid at a day's pay: weekly pay divided by the days worked each week. Neither payment is capped.

Worked example

Worked example: three people in one team

Three roles in Great Britain. The coordinator has one year's service, so their cost is notice and holiday only.

Inputs

  • Operations lead: 45, 10 years, £850 a week, 12 weeks' contractual notice, 4 days' holiday
  • Account manager: 30, 5 years, £520 a week, no contractual notice, 2.5 days' holiday
  • Coordinator: 24, 1 year, £400 a week, 4 weeks' contractual notice, 6 days' holiday on a 4-day week

Working

  1. Operations lead: Age 45 with 10 complete years: 4 years at 41 or over × 1.5, 6 years at 22 to 40 × 1 = 12 weeks. Statutory redundancy pay = 12 weeks × £751 (weekly pay of £850 capped) = £9,012. Total = £9,012 + £10,200 + £680 = £19,892
  2. Account manager: Age 30 with 5 complete years: 5 years at 22 to 40 × 1 = 5 weeks. Statutory redundancy pay = 5 weeks × £520 = £2,600. Total = £2,600 + £2,600 + £260 = £5,460
  3. Coordinator: 1 complete year of service is under 2: no statutory redundancy pay. Total = £0 + £1,600 + £600 = £2,200
  4. Team total = £11,612 + £14,400 + £1,540 = £27,552

The estimated cost for the team is £27,552: £11,612 statutory redundancy pay, £14,400 notice pay and £1,540 holiday pay.

Use it with context

A planning figure, not the final pay

Use the estimate to size a proposal before consultation starts. The final dates, the facts and payroll decide what each person is paid.

This calculator covers

  • Statutory redundancy pay by age band, up to 20 years
  • The weekly cap for Great Britain or Northern Ireland
  • Statutory or longer contractual notice at the pay entered
  • Accrued untaken holiday at a day's pay
  • Team totals and the 20-person consultation threshold

Check the full guidance for

  • Eligibility, breaks in service and excluded groups
  • Variable pay, overtime and the 12-week average
  • Enhanced, contractual or settlement payments
  • Tax, National Insurance and the £30,000 threshold
  • A fair pool, selection, consultation and appeal
From calculation to record

Keep the figures with the employment record

HollyHR keeps start dates, pay, employment documents and leaver records with each person, so the inputs behind a redundancy calculation can be checked later.

See people records in HollyHR
Questions

About the redundancy cost planner

Who qualifies for statutory redundancy pay?

An employee being made redundant normally qualifies after 2 years' continuous service. Workers who are not employees do not qualify, and an employee who unreasonably turns down a suitable alternative role can lose the right. Check the facts before you rely on a zero or a payment.

How is statutory redundancy pay calculated?

Count each full year of service, up to the most recent 20. A year counts at half a week's pay when the person was under 22 for all of it, one week from 22 to 40 and one and a half weeks from 41. Multiply the weeks by a week's pay, capped at £751 in Great Britain.

What is the maximum statutory redundancy pay?

£22,530 in Great Britain and £23,490 in Northern Ireland, where employment ends on or after 6 April 2026. That is 30 weeks at the weekly cap: 20 years at one and a half weeks.

Does paying in lieu of notice change the redundancy pay?

It can. When notice is paid in lieu or is shorter than the statutory minimum, service is counted to the date statutory notice would have ended. That extra time can complete another year or move someone into an older age band.

Is pay in lieu of notice taxed?

Yes. Notice pay, including a payment in lieu of notice, is taxed and subject to National Insurance like wages, and so is holiday pay. Statutory redundancy pay is usually tax-free within a £30,000 threshold shared with other non-contractual termination payments. Payroll or HMRC guidance settles the treatment for each person.

When does collective consultation apply?

When 20 or more redundancies are proposed at one establishment within 90 days. In Great Britain, consultation must start at least 30 days before the first dismissal, or 45 days for 100 or more, and the employer must send form HR1 to the Redundancy Payments Service. Northern Ireland requires 90 days for 100 or more. The planner flags the number but cannot tell whether the roles share an establishment.

Is untaken holiday paid on top?

Yes. Statutory holiday that has built up but not been taken must be paid when employment ends, even after a gross misconduct dismissal. A contract can give more. The holiday entitlement calculator works out a leaver's days.

Keep going

Useful next steps

GuideRedundancy for small employers
GlossaryRedundancy pay
GlossaryRedundancy consultation

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