How statutory redundancy pay works
If you have worked for your employer for at least 2 full years, you are entitled to statutory redundancy pay. For each full year of service you get:
| Your age during that year | 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 |
- Only the most recent 20 years count.
- Weekly pay is capped at £751 for redundancies on or after 6 April 2026, so the maximum statutory payment is £22,530.
- Weekly pay is your average gross weekly pay over the 12 weeks before you got your redundancy notice.
This calculator counts back from your most recent full year of service and uses your age during each year. HMRC's own calculator is the final word if you are close to an age boundary.
Worked example
A 45-year-old with 10 full years of service earning £600 a week: the last 4 years were worked at age 41 or over (4 × 1.5 = 6 weeks) and the 6 years before that at 35 to 40 (6 × 1 = 6 weeks). That is 12 weeks × £600 = £7,200.
Tax on redundancy pay
Statutory redundancy pay and any other termination payment up to a combined £30,000 are normally free of Income Tax and National Insurance. Holiday pay, notice pay and normal wages in your final pay are taxed as usual.
Planning your budget after a redundancy? Check what a new salary would leave you with the take home pay calculator.
Sources
Frequently asked questions
How much statutory redundancy pay will I get?
Half a week's pay for each full year worked under 22, one week's pay for each year aged 22 to 40 and one and a half weeks' pay for each year aged 41 or over, for 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 (20 years × 1.5 weeks × £751).
Do I get redundancy pay with less than 2 years of service?
No statutory redundancy pay is due with less than 2 full years of continuous service, though your contract may offer something.
Is redundancy pay taxed?
Statutory redundancy pay and other termination payments up to £30,000 in total are normally tax free.
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Last updated October 2026.