How statutory redundancy pay works
If you’re an employee and you’ve worked for your employer for at least 2 years, you’re normally entitled to statutory redundancy pay. The amount depends on three things: your age, how many full years you’ve worked there, and your weekly pay. This calculator follows the same method as the GOV.UK redundancy pay calculator and shows each step.
The age bands
Each full year of service earns a set number of weeks’ pay, depending on how old you were throughout that year:
- 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
- One and a half weeks’ pay for each full year you were 41 or older
Years are counted back from the date you were made redundant, and only the most recent 20 years count. For example, someone aged 41 with 20 years’ service gets 19.5 weeks: their most recent full year was spent aged 40, so no year counts at the 1.5 rate yet.
The weekly pay cap for 2026
Your weekly pay is the average you earned per week, before tax, over the 12 weeks before the day you got your redundancy notice. It’s capped. If you were made redundant on or after 6 April 2026, the cap is £751 in England, Scotland and Wales and £783 in Northern Ireland, so the most anyone can get is £22,530 (£23,490 in NI). Between 6 April 2025 and 5 April 2026 the cap was £719 (NI £749), and from 6 April 2024 it was £700 (NI £729). Pick your redundancy date above and the right cap is applied for you.
A worked example
Priya is 50, has worked for her employer for 12 full years and earns £650 a week. Counting back, she spent 9 of those years aged 41 to 49 (9 × 1.5 = 13.5 weeks) and 3 years aged 38 to 40 (3 × 1 = 3 weeks). That’s 16.5 weeks × £650 = £10,725, the same figure GOV.UK’s calculator gives.
Tax, notice and claiming
Statutory redundancy pay under £30,000 isn’t taxable, but holiday pay, unpaid wages and notice pay in your final payslip are taxed as normal. You’re also entitled to statutory notice: one week if you’ve worked there for between one month and 2 years, one week per full year up to 12, and 12 weeks after 12 years. You have 6 months from the date your job ends to claim. If you’re leaving with untaken holiday, the UK holiday entitlement calculator works out what you’re owed.
Sources: GOV.UK – Statutory redundancy pay, GOV.UK redundancy pay calculator (caps by date, GB and NI), notice periods and tax and National Insurance. Last checked 8 October 2026.