How is redundancy pay calculated?

This guidance applies to Great Britain unless stated otherwise. Statutory limits are reviewed each April — the figures below apply from April 2026. If you are made redundant and have at least two years' continuous employment, you are likely entitled to a statutory redundancy payment. The calculation uses three variables: your age at the date of redundancy, your length of continuous employment (capped at a maximum of 20 years), and a week's gross pay (capped at £751 from April 2026). For each complete year of employment, the number of weeks' pay you receive depends on your age during that year: if you were under 22, you receive half a week's pay; if you were between 22 and 40, you receive one week's pay; and if you were 41 or over, you receive one and a half weeks' pay. The maximum statutory redundancy payment from April 2026 is approximately £22,530 (20 years × 1.5 weeks × £751). Many employers offer enhanced (contractual) redundancy pay that is more generous than the statutory minimum — check your employment contract or staff handbook. Statutory redundancy pay is tax-free up to £30,000. If your employer is insolvent and cannot pay, you may be able to apply to the Redundancy Payments Service at the Insolvency Service. An employee may be denied statutory redundancy pay if they unreasonably refuse suitable alternative employment offered by the employer. Always verify current limits at GOV.UK. This information is general guidance only and does not constitute legal advice.