Settlement Agreement Calculator

Use our calculator to estimate your statutory redundancy entitlement. Then speak to our specialist solicitors to find out whether your overall settlement agreement is fair.

Enter a few details to instantly see your estimated redundancy pay.

Redundancy Pay

Your estimated redundancy pay is: £0.00

What Does This Calculator Show You?

This calculator estimates your statutory redundancy pay. This is the legal minimum your employer must include if your role is being made redundant. It uses the April 2026 rates, applying the current weekly pay cap of £751 and the age-banded formula set out in the Employment Rights Act 1996.

Your statutory redundancy figure is your starting point. It is not the same as your full settlement agreement value.

No online calculator can accurately value a settlement agreement. Every case depends on the circumstances surrounding your employment and any legal claims you may have.

Statutory Redundancy Pay: How It Works

Statutory redundancy pay is calculated using three factors: your age, your length of service and your weekly pay.

The Age-Banded Formula

Under 22: half a week’s pay for each full year of service
Aged 22 to 40: one week’s pay for each full year of service
Aged 41 or over: one and a half weeks’ pay for each full year of service

Service is capped at 20 years. Only complete years count.

The Weekly Pay Cap

From 6 April 2026, weekly pay is capped at £751, regardless of what you actually earn. If you earn £1,500 per week, the calculation still uses £751. The maximum statutory redundancy payment is £22,530.

The Two-Year Qualifying Period

You need at least two years of continuous service to qualify for statutory redundancy pay. You will not qualify if you have been employed for less than two years. However, your employer may still offer a settlement agreement for other reasons.

The GOV.UK redundancy pay calculator applies the same formula and is a useful reference alongside this tool.

Statutory Redundancy Pay Is Just the Starting Point

Your statutory redundancy entitlement sets the legal floor. If you are entitled to statutory redundancy pay, it represents the legal minimum you should receive for that element of your package.

One of the biggest misconceptions is that a settlement agreement can be reduced to a simple calculation. In reality, every agreement depends on the circumstances surrounding your employment and any legal claims you may have.

A settlement agreement will typically include additional elements on top of this:

Notice pay or payment in lieu of notice (PILON) — what you are owed for your notice period, whether worked or paid as a lump sum
Accrued holiday pay — any untaken holiday built up to your termination date
Ex-gratia compensation — an additional payment made in return for waiving your right to bring employment tribunal claims
Other agreed terms — such as reference wording, contribution to outplacement support or early release from restrictive covenants

Statutory redundancy pay is often only one part of a settlement agreement. Many agreements also include notice pay, holiday pay and an additional compensation payment in return for giving up certain legal claims.

Tax: What You Will Actually Take Home

Different elements of your settlement are taxed differently:

Statutory redundancy pay is tax-free up to £30,000 when combined with any ex gratia payment
PILON is fully taxable as employment income, regardless of how it is described in the agreement
Holiday pay is taxable in the normal way
Ex gratia compensation up to £30,000 is generally free of income tax and National Insurance

Understanding the tax treatment of each element is important. The headline figure in your agreement and the amount you actually receive can differ significantly.

How Do You Know If Your Settlement Agreement Offer Is Fair?

Your statutory redundancy figure gives you a baseline. But whether the overall offer is fair depends on some additional factors:

How long you have been employed and what your contractual notice entitlement is
Whether your employer followed a fair process. A flawed redundancy or dismissal process can give rise to an unfair dismissal claim, which should be reflected in the settlement figure
Whether any other claims exist; discrimination, whistleblowing or breach of contract claims can significantly affect what a fair settlement looks like
The strength of any legal claims you may have and whether they affect what a fair settlement looks like.

This is why independent legal advice matters. Our settlement agreement solicitors will assess your full position, not just the redundancy calculation. We will advise you on whether the offer on the table reflects everything you are entitled to.

Can my employer offer less than the statutory redundancy figure?

No. The statutory redundancy payment is a legal minimum under the Employment Rights Act 1996. If you qualify for statutory redundancy pay, your employer cannot contract out of that statutory entitlement through a settlement agreement. Your statutory figure is the floor, not a starting point for negotiation downwards.

Do I have to accept the first offer my employer makes?

No, you don’t have to accept the first offer. Some settlement agreements are fair from the outset, while others can be improved through negotiation. Our specialist settlement agreement solicitors can assess whether the offer properly reflects your position and advise whether there is genuine value in negotiating.

Is the settlement agreement calculator the same as a redundancy pay calculator?

Not exactly. This calculator estimates your statutory redundancy pay, which is one component of a settlement agreement. A full settlement agreement assessment needs to take into account notice pay, holiday pay, ex gratia compensation, tax treatment and any employment claims that may have arisen. For a complete picture, speaking to a settlement agreement solicitor is the right next step.

Does using this calculator mean I am committed to anything?

No. Using the calculator is entirely free and without obligation. It gives you an estimate of your statutory redundancy entitlement so you can approach any conversation with your employer with a clearer sense of what you are owed.

Not Sure Whether Your Settlement Agreement Offer Is Fair?

Sometimes the right advice is to negotiate. Sometimes the right advice is to sign. Our job is to help you understand which applies to your situation.

Your statutory redundancy figure is just the starting point. Have you been offered a settlement agreement? If you want to know whether the overall package reflects your full entitlement, our specialist settlement agreement solicitors can advise you the same day.

If there is genuine scope to improve the offer, we can negotiate on your behalf. If the agreement is already fair, we’ll tell you that too.

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