How Much Redundancy Pay Am I Entitled To?
Updated June 2026 · 6 min read · Free calculator inside
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If you are made redundant after at least two years with an employer, you are usually entitled to statutory redundancy pay. The amount depends on your age, your length of service and your weekly pay — within set caps. This guide explains the 2026 formula and how the payment is taxed.
Work out your statutory redundancy entitlement
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Open the Redundancy Pay Calculator →Who qualifies for statutory redundancy pay
You generally qualify if you are an employee with at least two years' continuous service and you are being genuinely made redundant — that is, your role is no longer needed. Agency workers, the genuinely self-employed and some other groups are treated differently.
The age-based formula
Statutory redundancy pay gives you a number of weeks' pay for each full year of service, based on your age during that year:
| Age during the year of service | Weeks' pay per year |
|---|---|
| Under 22 | Half a week |
| 22 to 40 | One week |
| 41 and over | One and a half weeks |
A maximum of 20 years of service can be counted.
The weekly pay cap
Your weekly pay is capped for the statutory calculation. For 2026 the cap is £751 a week in England, Wales and Scotland (£749 in Northern Ireland). If you earn more than the cap, the calculation still only uses the capped figure — although your employer may pay more under a contractual or enhanced scheme.
Worked example
- You are 45, with 10 full years of service, earning £900 a week.
- Weekly pay is capped at £751.
- Years aged 41+ count at 1.5 weeks each. If all 10 years were after age 41, that is 15 weeks.
- Statutory redundancy ≈ 15 × £751 = £11,265.
How redundancy pay is taxed
Genuine statutory and contractual redundancy payments are tax-free up to £30,000. Anything above £30,000 is taxed as income in the normal way. Note that pay in lieu of notice and any outstanding holiday pay are taxed and do not benefit from the £30,000 exemption.
Frequently Asked Questions
How many years do I need to get redundancy pay?
You normally need at least two years of continuous employment with the same employer to qualify for statutory redundancy pay.
Is redundancy pay taxed in the UK?
Genuine redundancy payments are tax-free up to £30,000. Any amount above £30,000 is subject to income tax, and items like pay in lieu of notice are taxed separately.
What is the maximum statutory redundancy pay?
With the 2026 cap of £751 a week, 20 years of service and the 1.5-week rate, statutory redundancy is capped at around £22,530 — though enhanced employer schemes can pay more.
Does my employer have to pay enhanced redundancy?
No. Enhanced redundancy is only required if it is in your contract or an agreed policy. Otherwise the statutory minimum applies.
Work out your statutory redundancy entitlement
Skip the maths — get an instant, up-to-date figure with our free calculator.
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⚠️ Disclaimer: This guide is for general information only and does not constitute financial, tax, or legal advice. Rates and thresholds can change — always check the latest figures on GOV.UK and consult a qualified professional before making decisions.