How statutory redundancy pay is worked out
If you are an employee with 2 years or more of service with your current employer, you are normally entitled to statutory redundancy pay.
If you are an employee with 2 years or more of service with your current employer, you are normally entitled to statutory redundancy pay. The amount depends on your age, your length of service and your weekly pay. 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, and one and a half weeks' pay for each full year you were 41 or older. Length of service is capped at 20 years, so the maximum is 30 weeks' pay.
| Your age in the 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 |
The weekly pay cap
The weekly pay used in the calculation is capped.
The weekly pay used in the calculation is capped. For redundancies on or after 6 April 2026 in Great Britain the cap is £751 a week, and the maximum statutory redundancy pay is £22,530. Northern Ireland has separate legislation and its own figures: nidirect gives £783 a week and a maximum of £23,490. If you earn more than the cap, the calculator uses the cap. This calculator does not cover redundancies before 6 April 2026, because the earlier cap was lower.
How the year-by-year count works
The law counts back from the date your employment ends, one complete year at a time, and gives each year a rate based on your age.
The law counts back from the date your employment ends, one complete year at a time, and gives each year a rate based on your age. The calculator takes your age at the start of each of those years. So if you turned 41 four years ago, the most recent four years are paid at one and a half weeks and the earlier years at one week. A year in which you were still below a band's age at the start pays at the lower rate, and part years do not count. Service beyond 20 years is ignored, which means the 20 most recent years are the ones that count.
Notice pay, holiday pay and other payments
Statutory redundancy pay is separate from other money you may be owed.
Statutory redundancy pay is separate from other money you may be owed. You should receive your notice, either by working it or being paid in lieu, and GOV.UK says employers must pay for untaken statutory holiday when you leave. Your contract may also promise enhanced redundancy pay, which would replace or top up the statutory amount. Redundancy pay is calculated on a week's pay before tax, so what you receive after tax may differ. Use the UK holiday entitlement calculator to check your holiday.
FAQ
Who is entitled to statutory redundancy pay?
You normally qualify if you are an employee and have worked for your current employer for 2 years or more. Workers who are not employees, and employees with less than 2 years of continuous service, do not get statutory redundancy pay, although a contract or an employer scheme may still offer something.
How is statutory redundancy pay calculated?
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, and one and a half weeks' pay for each full year you were 41 or older. Years are counted back from the date your employment ends, and only the last 20 years count. The total number of weeks is multiplied by your weekly pay, up to the statutory cap.
What is the weekly pay cap for 2026/27?
For redundancies in Great Britain on or after 6 April 2026, a week's pay is capped at £751, so the most you can get is £22,530 (30 weeks at £751). Northern Ireland has its own figures: nidirect gives a cap of £783 and a maximum of £23,490. If your weekly pay is higher than the cap, the cap is used.
How is my weekly pay worked out?
GOV.UK says your weekly pay is the average you earned per week over the 12 weeks before the day you got your redundancy notice. Acas says to include guaranteed overtime and any contractual bonuses or commission in that average. Use your gross pay, before tax, in the calculator above.
Why does my age matter for each year of service?
Because the rate depends on your age in each year you worked, counted backwards from the date your employment ends. A person aged 45 with 10 years of service has four years at age 41 or over (one and a half weeks each) and six years at ages 22 to 40 (one week each), which is 12 weeks in total. The year-by-year table shows your age at the start of each counted year.
Do part years and more than 20 years count?
No. Only complete years of service count, so a part year is ignored, and service is capped at the last 20 years. A person with 24 years and 6 months of service is treated as having 20 years for the calculation.
Are notice pay and holiday pay included in redundancy pay?
No, they are separate. Statutory redundancy pay is on top of your notice, which is either worked or paid in lieu, and of any untaken statutory holiday, which employers must pay when you leave. Use the UK holiday entitlement calculator to work out your holiday, and check your contract for any contractual notice or enhanced redundancy terms.
How long do I have to claim redundancy pay?
GOV.UK says you have 6 months from the date your job ends to apply for statutory redundancy pay. If your employer does not pay, do not wait: take advice from Acas or Citizens Advice before the 6 months run out.
Sources
7 official sources
- GOV.UK: Statutory redundancy pay (age bands, 20-year cap, £751 weekly cap and £22,530 maximum for redundancies on or after 6 April 2026)
- GOV.UK: Calculate your redundancy pay (2 years of service, weekly pay averaged over 12 weeks, 6 months to apply)
- Acas: Work out redundancy pay (relevant date, 12-week average, guaranteed overtime and contractual bonuses)
- Employment Rights Act 1996, section 162 (amount of a redundancy payment, counting back from the calculation date)
- nidirect: Redundancy pay (Northern Ireland: £783 weekly cap and £23,490 maximum; the page does not give an effective date)
- GOV.UK: Redundancy notice periods
- GOV.UK: Taking holiday before leaving a job (untaken statutory leave must be paid)
Figures checked against GOV.UK, Acas, legislation.gov.uk and nidirect. Last verified: September 2026.