Statutory Redundancy Pay: Complete UK Guide (2026/27)

Statutory redundancy pay is the minimum amount your employer must pay you if you are made redundant after at least two years of continuous service. This guide covers who qualifies, how the payment is calculated, and what you can do if you think you have been underpaid.

Who qualifies for statutory redundancy pay?

To be entitled to statutory redundancy pay you must:

• Be an employee (not self-employed or a worker)
• Have been continuously employed for at least two years
• Have been genuinely made redundant

You do not qualify if you were dismissed for misconduct, resigned, or accepted voluntary redundancy in some circumstances — although the latter often still attracts a payment.

How the calculation works

Statutory redundancy pay is calculated using three variables:

• Your age during each year of service
• Length of continuous service — capped at 20 years
• Weekly gross pay — capped at £751 for redundancies on or after 6 April 2026

Age-band multipliers

The number of weeks' pay you receive for each year of service depends on your age during that year:

• Under 22: half a week's pay
• Age 22 to 40: one week's pay
• Age 41 and over: one and a half weeks' pay

The multipliers apply year by year, based on your age during each year worked — not just your age at the point of redundancy. If you worked from age 40 to 43, for example, one year attracts the 22–40 rate and three years attract the 41+ rate.

Maximum statutory redundancy pay

With service capped at 20 years and weekly pay at £751, the highest possible statutory payout is:

30 weeks × £751 = £22,530

This maximum applies to someone aged 61 or over with 20 or more years of service earning above the cap.

Is statutory redundancy pay taxable?

The first £30,000 of a redundancy payment is tax-free. This applies to the combined total of your statutory payment and any enhanced redundancy your employer pays on top. Amounts above £30,000 are taxed as income in the year you receive them.

Note that notice pay and holiday pay are always taxable, even if paid at the same time as your redundancy.

Enhanced redundancy pay

Your employer can offer more than the statutory minimum. Common enhanced packages include:

• A higher weekly pay cap (e.g. uncapped or capped at your actual salary)
• A higher multiplier (e.g. 1.5× or 2× statutory)
• Additional weeks per year of service beyond the statutory formula

Check your employment contract, staff handbook, or any collective agreement for details. Enhanced payments are at the employer's discretion unless contractually guaranteed.

When must you be paid?

Your employer must pay your statutory redundancy pay on or before your termination date, or within two weeks of dismissal. If your employer is insolvent, you can claim directly from the Insolvency Service.

What if your employer refuses to pay?

If you believe you are owed statutory redundancy pay and your employer refuses, you can:

• Write to your employer formally requesting payment
• Raise a grievance through your employer's internal procedure
• Apply to an Employment Tribunal within six months of your dismissal date

ACAS Early Conciliation is required before you can submit a tribunal claim. The service is free.

The weekly pay cap over time

The cap on a week's pay is reviewed each April. Recent figures:

• 2026/27: £751
• 2025/26: £719
• 2024/25: £643

Calculate your entitlement

Use our free redundancy pay calculator to get an instant breakdown based on your age, service length, and weekly pay — including how much will be tax-free.

You can also use the official GOV.UK redundancy calculator to cross-check your figure.