Calculator · Voluntary

Voluntary redundancy pay calculator

If you take voluntary redundancy you still get the statutory minimum. The reason employers offer VR is to reduce the number of compulsory selections, so they almost always add an enhanced top-up. Run the statutory floor first, then add the employer's offer.

Your ageat terminationYears of servicecomplete yearsWeekly gross pay£ per weekRate year

2026-27 CURRENT

cap £751

Age 41 and over · 6 years × 1.5 wk × £720£6,480.00

Age 22 to 40 · 6 years × 1 wk × £720£4,320.00

Total statutory redundancy pay£10,800

Calculated under ERA 1996 s.162 against the 2026-27 weekly cap of £751.Verify the 2026 Order reference at legislation.gov.uk before quoting in formal correspondence.

Statutory floor: identical to compulsory

The formula in ERA 1996 s.162 does not distinguish between voluntary and compulsory selection. As long as the reason for dismissal is genuine redundancy under ERA 1996 s.139, the same 0.5 / 1 / 1.5 weeks-per-year-by-age-band rule applies, with the same £751 weekly cap and 20-year service ceiling for 2026/27.

Why VR usually pays more

Common enhanced patterns for voluntary schemes: statutory plus 50%, statutory doubled, statutory at uncapped weekly pay (your actual salary, not £751), or a flat 2-4 weeks per year of service at full pay. ACAS guidance summarises the typical landscape: voluntary redundancy.

Employers prefer VR to compulsory because it lowers protective-award risk, reduces consultation friction, and removes the need to defend a selection pool at tribunal.

Benefits and Universal Credit impact

Voluntary redundancy does NOT trigger a JSA / Universal Credit sanction in itself. The Department for Work and Pensions treats acceptance of VR as a redundancy dismissal, not a voluntary leaving. The total package may affect means-tested benefits as savings (capital limit £16,000 for full UC). See gov.uk JSA eligibility.