How statutory redundancy pay works
If you're an employee with at least 2 years' continuous service, you're normally entitled to statutory redundancy pay. It's based on your age, your length of service (only the most recent 20 years count) and your weekly pay:
- half a week's pay for each full year you were under 22;
- one week's pay for each full year you were 22 or older but under 41;
- one and a half weeks' pay for each full year you were 41 or older.
Your weekly pay is your average weekly earnings over the 12 weeks before you got your redundancy notice, but only up to a cap.
The weekly pay cap
| Job ended | Weekly cap | Most you can get |
|---|---|---|
| On or after 6 April 2026 | £751 | £22,530 |
| On or after 6 April 2025 | £719 | £21,570 |
The cap changes every April. We update this calculator when the government publishes the new figure.
Example
Someone aged 45 with 10 full years' service and weekly pay of £800, whose job ends in October 2026: 4 years aged 41 or older (4 × 1.5 = 6 weeks) plus 6 years aged 22 to 40 (6 weeks) gives 12 weeks. Their pay is above the £751 cap, so they get 12 × £751 = £9,012.
Enhanced pay, tax and claiming
Your contract or your employer's policy may give you more than the statutory minimum ("enhanced" redundancy pay), so check both. The first £30,000 of a genuine redundancy payment is usually tax-free; pay instead of notice, holiday pay and wages are taxed as normal.
If you haven't been paid, write to your employer within 6 months of your job ending: a written claim protects your right. If your employer is insolvent, you can apply to the Redundancy Payments Service.