How is statutory redundancy pay calculated?

For each full year of service you get half a week's pay for years worked under 22, one week's pay for years aged 22 to 40, and one and a half weeks' pay for years aged 41 or older. Up to 20 years count.

What is the maximum statutory redundancy pay in 2026?

£22,530, for redundancies on or after 6 April 2026. Weekly pay is capped at £751, and at most 20 years count, so the most anyone can receive is 30 weeks at £751.

Who qualifies for redundancy pay?

Employees with at least two years of continuous service with their current employer. Workers and the self-employed do not qualify for statutory redundancy pay.

Is redundancy pay taxed?

The first £30,000 of a redundancy or termination payment is free of income tax and National Insurance. Notice pay, holiday pay and wages owed are taxed as normal pay.

Can my employer pay more?

Yes. Many contracts offer enhanced redundancy pay above the statutory amount; check your contract or staff handbook. Statutory pay is the legal minimum.

Free calculator · 2026/27

Statutory redundancy pay calculator

Statutory redundancy pay is half, one or one and a half weeks' pay for each full year of service depending on your age, with weekly pay capped at £751 and a maximum of £22,530 from 6 April 2026. You need two years' service to qualify. Figures are for England, Scotland and Wales.

Use it now ↓All free tools

Your age on the date you are made redundant

Full years of continuous service

Only complete years count. Up to 20 are used.

Weekly pay before tax

Annual salary ÷ 52, if your pay is fixed.

Statutory redundancy pay

£5,200.00

8 weeks' pay at £650.00 a week

Years counted: 8
Weekly pay used: £650.00
Weeks' pay: 8
Tax on it: None — under £30,000

Redundancy pay examples

Age	Years of service	Weekly pay	Statutory redundancy pay
25	3	£500	£1,500
30	8	£600	£4,800
40	10	£700	£7,000
45	15	£800	£12,767
55	25	£900	£20,277

Weekly pay above £751 is capped at £751; only the last 20 years count.

How it's worked out

Counting back from the date you are made redundant, each full year of service earns half a week's pay if you were under 22 for the whole year, one week's pay if you were 22 to 40, and one and a half weeks' pay if you were 41 or older. Only the most recent 20 years count.

A week's pay is your normal gross weekly pay, capped at £751 for redundancies on or after 6 April 2026, so the maximum is 30 weeks at £751: £22,530. The first £30,000 of a redundancy payment is free of income tax and National Insurance.

Common questions

How is statutory redundancy pay calculated?: For each full year of service you get half a week's pay for years worked under 22, one week's pay for years aged 22 to 40, and one and a half weeks' pay for years aged 41 or older. Up to 20 years count.
What is the maximum statutory redundancy pay in 2026?: £22,530, for redundancies on or after 6 April 2026. Weekly pay is capped at £751, and at most 20 years count, so the most anyone can receive is 30 weeks at £751.
Who qualifies for redundancy pay?: Employees with at least two years of continuous service with their current employer. Workers and the self-employed do not qualify for statutory redundancy pay.
Is redundancy pay taxed?: The first £30,000 of a redundancy or termination payment is free of income tax and National Insurance. Notice pay, holiday pay and wages owed are taxed as normal pay.
Can my employer pay more?: Yes. Many contracts offer enhanced redundancy pay above the statutory amount; check your contract or staff handbook. Statutory pay is the legal minimum.

More free tools

Calculator

Work out your take-home pay

Your salary after 2026/27 income tax, National Insurance, pension and student loan.

Work it out

Template

Resign properly, in one page

Your notice period and last day, in a short professional letter.

Write the letter

Builder

Build a CV that gets read

Fill in a form and save a clean UK CV as a PDF. Nothing is uploaded.

Start your CV