How statutory redundancy pay is worked out
If you are an employee and have worked for your employer for 2 years or more, you are normally entitled to statutory redundancy pay. For each full year of service you get:
- 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
Service is capped at the last 20 years, counted back from the redundancy date. Weekly pay is your average gross pay over the 12 weeks before you got your redundancy notice. If you were made redundant on or after 6 April 2026, weekly pay is capped at £751, so the most anyone can get is 20 × 1.5 × £751 = £22,530.
Worked example
You are 45, have worked for the company for 10 full years and earn £600 a week. Counting back, 4 of those years were at age 41 or over (4 × 1.5 = 6 weeks) and 6 were between 22 and 40 (6 weeks). That is 12 weeks × £600 = £7,200.
Tax and other payments
Statutory redundancy pay and any extra redundancy pay from your employer are usually tax-free up to £30,000 in total. Notice pay, holiday pay and wages are taxed as normal. Your contract may also give you enhanced redundancy pay above the statutory minimum, so check your contract or staff handbook.
You have 6 months from the date your job ends to claim. If your employer cannot pay, for example because it is insolvent, you can apply to the Insolvency Service. To see what your notice pay is worth after tax, use the take-home pay calculator.
Frequently asked questions
What is the maximum statutory redundancy pay in 2026?
£22,530 if you were made redundant on or after 6 April 2026. Weekly pay is capped at £751 and service at 20 years.
Do I get redundancy pay with less than 2 years service?
Not statutory redundancy pay. Your contract may still give you something, and you should get notice pay and unused holiday.
Is redundancy pay taxed?
The first £30,000 of redundancy pay is usually tax-free. Notice pay and holiday pay are taxed normally.
What weekly pay is used?
Your average gross weekly pay over the 12 weeks before you received notice, capped at £751.
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Sources
- GOV.UK – Statutory redundancy pay
- GOV.UK – Calculate your statutory redundancy pay
- GOV.UK – Tax on redundancy
- Acas – Redundancy pay
Disclaimer: This calculator gives an estimate using official 2026/27 rates published on GOV.UK and devolved government sites (checked October 2026). It is not financial, tax or legal advice and may not cover every situation. Always check with the official source, HMRC, your lender or a qualified adviser before making decisions.