How it works
For each full year of service, working back from your redundancy date: half a week’s pay for years under 22, one week for years aged 22 to 40, and one and a half weeks for years aged 41 or over. Up to 20 years count and weekly pay is capped at £751.
A worked example
Aged 45 with 10 years of service and £600 a week gives 12 weeks’ pay, or £7,200.
What to keep in mind
Statutory minimum only, for redundancies on or after 6 April 2026 in England, Scotland and Wales. Requires at least 2 years of continuous service. Excludes enhanced contractual schemes, notice pay and holiday pay. The first £30,000 of a qualifying redundancy payment is usually tax-free.
How statutory redundancy pay is calculated
You need at least 2 years of continuous service. For each full year, counting back from the date you were made redundant, you get half a week’s pay for years when you were under 22, one week’s pay for years aged 22 to 40, and one and a half weeks’ pay for years aged 41 or over.
Limits from 6 April 2026
Only the most recent 20 years of service count, and weekly pay is capped at £751. The maximum statutory redundancy payment is therefore £22,530.
Worked examples
Aged 45 with 10 years of service on £600 a week: 4 years at one and a half weeks plus 6 years at one week gives 12 weeks, or £7,200. Aged 30 with 5 years on £500 a week: 5 weeks, or £2,500. Aged 60 with 25 years on £900 a week: 29.5 weeks at the £751 cap, or £22,154.50.
Tax on redundancy pay
The first £30,000 of a genuine redundancy payment is usually tax-free. Notice pay, holiday pay and wages owed are taxed as normal income.
Frequently asked questions
How much redundancy pay will I get?
It depends on your age, years of service and weekly pay. For each full year you get half, one or one and a half weeks’ pay, up to 20 years, with weekly pay capped at £751.
What is the maximum statutory redundancy pay in 2026?
£22,530 for redundancies on or after 6 April 2026.
Do I get redundancy pay with less than 2 years of service?
Not statutory redundancy pay, but your contract may give you more. You are still entitled to notice pay and any holiday owed.
Is redundancy pay taxed?
The first £30,000 is usually tax-free. Anything above that is taxed.
Sources & rates
Rates checked on 30 September 2026.
For general information and planning, not personalised financial or tax advice. Verify important decisions with a qualified adviser.