Being made redundant is stressful, and understanding your financial entitlements shouldn't add to the worry. UK law gives most employees a guaranteed minimum redundancy payment. Here's exactly how statutory redundancy pay works in 2025/26, so you know what you're owed.
Who qualifies for statutory redundancy pay?
To be entitled to statutory redundancy pay, you generally must:
- Be classed as an employee (not a contractor or worker)
- Have at least 2 years' continuous service with your employer
- Have been genuinely made redundant — meaning your role is no longer needed
If you've been dismissed for misconduct, or you turn down a suitable alternative role without good reason, you may lose your entitlement.
How statutory redundancy pay is calculated
The amount depends on three things: your age, your length of service, and your weekly pay. For each full year of service, you receive:
| Age during that year of service | Weeks' pay per year |
|---|---|
| Under 22 | 0.5 weeks |
| 22 to 40 | 1 week |
| 41 and over | 1.5 weeks |
The two important caps
Two limits apply to statutory redundancy calculations in 2025/26:
- Weekly pay is capped at £643. If you earn more than this, the calculation still uses £643 as your weekly figure.
- Service is capped at 20 years. Years beyond 20 don't count toward statutory pay.
Together these cap the maximum statutory redundancy payment at £19,290 for 2025/26.
A worked example
Imagine you're 45 years old, have worked somewhere for 12 years, and earn £600 a week:
- Years worked while aged 41+: 4 years × 1.5 weeks = 6 weeks
- Years worked while aged 22-40: 8 years × 1 week = 8 weeks
- Total: 14 weeks × £600 = £8,400
Because this is under £30,000, the full £8,400 is tax-free.
Statutory vs enhanced redundancy pay
What we've described is the legal minimum. Many employers offer enhanced redundancy packages that are more generous — often using your actual weekly pay without the £643 cap, or a higher multiplier per year of service. Always check your employment contract, staff handbook or any collective agreement to see if you're entitled to more.
What else you might be owed
Beyond redundancy pay, you may also be entitled to:
- Your notice period pay (or pay in lieu of notice)
- Payment for any accrued but untaken holiday
- Any outstanding salary or bonuses
Know your entitlement
If redundancy is on the horizon, knowing your statutory minimum gives you a baseline to check any offer against. Our redundancy pay calculator works out your statutory entitlement instantly based on your age, service and weekly pay.
Try the Redundancy Pay Calculator
Get your own numbers instantly — free, no signup.
This article is for general information only and does not constitute financial, tax or legal advice. Tax rules and rates can change, and your personal circumstances affect how they apply to you. Always consult a qualified professional before making financial decisions. Figures are based on 2025/26 rates.