What is statutory redundancy pay?
Statutory redundancy pay is a legal minimum lump sum that eligible employees in the UK are entitled to when they're made redundant — that is, when their employer needs to reduce headcount because a role is no longer needed, rather than for performance or conduct reasons. It exists to give people a financial cushion while they look for new work.
The amount depends on three things: how long you've worked for your employer (your continuous service), your age during each year of that service, and your average weekly pay, up to a legal cap. Employers can choose to pay more than the statutory minimum through an enhanced or contractual redundancy scheme, but they can't legally pay less to anyone who qualifies.
Who is eligible?
To qualify for statutory redundancy pay, you generally need:
- At least 2 years' continuous service with your employer
- Employee status (not self-employed or most agency workers)
- To actually be redundant — your job is genuinely disappearing, rather than you being dismissed for another reason or offered suitable alternative work you unreasonably turned down
There's no upper age limit — older employees remain eligible and, in fact, tend to receive a higher multiplier under the age-band rules below.
How the age bands work
Statutory redundancy pay is calculated a week at a time for each full year you've worked, and the multiplier for that year depends on how old you were during that particular year of service — not your age when you're made redundant. The bands are:
- Under 22: 0.5 weeks' pay per full year of service
- 22 to 40: 1 week's pay per full year of service
- 41 and over: 1.5 weeks' pay per full year of service
This means one redundancy calculation can span multiple bands. Someone who joined a company at 19 and was made redundant at 45 would have their early years (under 22) counted at 0.5 weeks, their middle years (22–40) at 1 week, and their most recent years (41+) at 1.5 weeks — each calculated separately and added together.
Only a maximum of 20 years' service counts, even if you've worked longer. Where service exceeds 20 years, the most recent 20 years are used.
The weekly pay cap
The government sets a maximum "week's pay" figure used in the calculation, reviewed every April. For the 2026/27 tax year (from 6 April 2026) it's £751 for England, Scotland and Wales, and £783 for Northern Ireland. If you earn more than this per week, the calculation still uses the capped figure, not your real pay. Combined with the 20-year service cap, this puts the maximum possible statutory redundancy payment at £22,530 (20 years × 1.5 × £751).
Worked examples
Example 1: 8 years' service, all in the 22–40 band
Aged 30 when made redundant, joined aged 22, weekly pay £450 (under the cap).
8 years × 1 week × £450 = £3,600
Example 2: Service spanning two age bands
Joined aged 19, made redundant aged 26, weekly pay £400. 3 years counted under 22 (0.5x), 5 years counted in the 22–40 band (1x).
(3 × 0.5 × £400) + (5 × 1 × £400) = £600 + £2,000 = £2,600
Example 3: High earner, capped pay, long service
22 years' service (only the most recent 20 count), all in the 41+ band, actual weekly pay £1,400 (capped at £751).
20 years × 1.5 × £751 = £22,530 (the statutory maximum)
Frequently asked questions
Is statutory redundancy pay taxed?
No, not usually. The first £30,000 of redundancy pay (statutory and any non-contractual enhanced payment combined) is tax-free. Since the statutory maximum is £22,530, statutory redundancy pay on its own is always tax-free. Only enhanced payments that push the total above £30,000 may be taxed on the excess.
Is notice pay included in this figure?
No. Statutory redundancy pay is separate from notice pay. If your employer doesn't require you to work your notice, you're usually entitled to be paid for it separately (either your statutory or contractual notice period, whichever is longer). This calculator only covers the redundancy payment itself.
What if my employer offers less than the statutory minimum?
The figures in this calculator are the legal minimum for eligible employees — your employer cannot legally pay less. If you believe you've been offered less than your statutory entitlement, you can raise it with your employer, contact Acas for free advice, or in some cases claim from the government's Redundancy Payments Service if your employer can't pay (for example due to insolvency).
Does my age at the time of redundancy affect the whole calculation?
No — each year of service is assessed using the age you were during that particular year, not your age when you're made redundant. That's why a long career can mix multipliers: for example, years worked before you turned 22 are counted at 0.5 weeks' pay, even if you're now over 41.
What counts as a week's pay for this calculation?
It's your average gross (before tax) weekly pay, typically averaged over the 12 weeks before your redundancy notice, or another reference period if your pay varies. This figure is then capped at the legal maximum — £751 a week for England, Scotland and Wales, or £783 for Northern Ireland — even if you actually earn more.
Do I need 2 full years of service to qualify?
Yes. You need at least 2 years' continuous service with your employer to be entitled to statutory redundancy pay, regardless of your age or hours worked.
This calculator provides an estimate based on the statutory minimum rules for the 2026/27 tax year and is for general information only. It is not a substitute for professional advice. For your specific situation, contact Acas or check the latest guidance on GOV.UK.