How Much Redundancy Pay Will I Get?
Short answer: a 45-year-old with 10 full years of service on £600 a week gets £7,200 statutory redundancy pay, and the most anyone can get for a redundancy on or after 6 April 2026 is £22,530. The table below covers common ages, years of service and pay levels.
The statutory rules
If you are an employee with at least 2 full years of continuous service, your employer must pay you at least statutory redundancy pay. It is based on three things: your age during each year of service, how many full years you have worked (up to 20) and your weekly pay before tax.
| Your age during that year of service | Pay for each full year |
|---|---|
| Under 22 | Half a week's pay |
| 22 to 40 | One week's pay |
| 41 or over | One and a half weeks' pay |
According to GOV.UK, if you were made redundant on or after 6 April 2026 your weekly pay is capped at £751, and the maximum statutory payment is £22,530 (20 years × 1.5 weeks × £751). Weekly pay is your average gross pay over the 12 weeks before you were given notice.
Weeks of pay = sum over your last 20 full years of 0.5, 1 or 1.5 by your age in each year
Redundancy pay by age and years of service
Ages are your age when made redundant. Each year is counted back from your most recent full year, using your age during that year. Weekly pay is before tax; anything above £751 is capped.
| Age | Full years | Weeks of pay | £400 a week | £600 a week | £751 a week or more |
|---|---|---|---|---|---|
| 21 | 4 | 2 | £800 | £1,200 | £1,502 |
| 25 | 3 | 3 | £1,200 | £1,800 | £2,253 |
| 30 | 5 | 5 | £2,000 | £3,000 | £3,755 |
| 40 | 10 | 10 | £4,000 | £6,000 | £7,510 |
| 45 | 10 | 12 | £4,800 | £7,200 | £9,012 |
| 50 | 15 | 19.5 | £7,800 | £11,700 | £14,644.50 |
| 55 | 20 | 27 | £10,800 | £16,200 | £20,277 |
| 60 | 25 | 29.5 | £11,800 | £17,700 | £22,154.50 |
Notice the 60-year-old with 25 years: only the last 20 count, and one of those years was worked at age 40, so it earns 1 week rather than 1.5. To reach the £22,530 maximum you need 20 full years all worked at age 41 or over, so you must be at least 61.
Worked example: age 52, 12 years, £800 a week
Counting back from the most recent year, the employee was 51, 50, 49 and so on down to 40 during their 12 years of service.
- 11 years at age 41 to 51: 11 × 1.5 = 16.5 weeks
- 1 year at age 40: 1 × 1 = 1 week
- Total: 17.5 weeks
Their pay of £800 a week is above the cap, so £751 is used: 17.5 × £751 = £13,142.50. Without the cap it would have been £14,000.
Tax on redundancy pay
Statutory redundancy pay, plus any other termination payment such as an enhanced redundancy sum, is normally free of Income Tax and National Insurance up to £30,000 in total. Your final normal wages, holiday pay and pay in lieu of notice are taxed in the usual way. Your untaken holiday must be paid out: the holiday entitlement calculator shows how many days you have built up.
Practical tips
- Check your contract. Statutory pay is the legal minimum. Many employers pay an enhanced amount, for example without the weekly cap or with more weeks per year.
- Count full years only. 9 years and 11 months counts as 9 full years. Continuous service usually continues through a transfer of the business to a new owner.
- Less than 2 years means no statutory pay, although notice pay and holiday pay are still due.
- Plan the next step. If a new job is on offer, compare it with the take home pay calculator, and if you are thinking of paying some of the lump sum into a pension, see what it could grow to with the pension calculator.
Sources
Try the statutory redundancy pay calculator
Enter your own numbers below, or open the full statutory redundancy pay calculator with the formula and more examples.
This guide is general information with example numbers, not financial, tax or building advice. Your costs and results will differ. Terms
Frequently asked questions
How much redundancy pay will I get for 10 years of service?
It depends on your age and pay. On £600 a week a 40-year-old gets £6,000 (10 weeks) and a 45-year-old gets £7,200 (12 weeks), because years worked at 41 or over count as 1.5 weeks.
What is the maximum statutory redundancy pay in 2026?
£22,530 for redundancies on or after 6 April 2026: 20 years × 1.5 weeks × the £751 weekly pay cap.
Is redundancy pay based on gross or net pay?
Gross. It uses your average weekly pay before tax over the 12 weeks before notice, capped at £751.
Is redundancy pay tax free?
Statutory redundancy pay and other termination payments are normally tax free up to £30,000 in total. Normal wages, holiday pay and notice pay are taxed.