Statutory redundancy pay in Great Britain is calculated using your age, completed years of service and gross weekly pay. If you qualify, each full year of service counts as half a week’s pay when you were under 22, one week’s pay from age 22 to 40, or one and a half weeks’ pay from age 41. The calculation is limited to 20 years of service and, for redundancies taking effect on or after 6 April 2026, a maximum weekly pay figure of £751 applies.
If your employer has announced redundancy, you may want to check whether the proposed payment is correct before accepting the figures. The amount is not simply a fixed number of weeks’ wages: the statutory formula gives different weight to different years of service, depending on your age during those years.
This guide explains the calculation that applies in Great Britain, including worked examples, the 2026/27 statutory limit, what counts as weekly pay and how to challenge an apparent mistake. Your contract may also provide an enhanced redundancy scheme, which can offer more than the statutory minimum.
1. Who qualifies for statutory redundancy pay?
You will normally qualify for statutory redundancy pay if you are an employee who has been continuously employed by the same employer for at least two years and your job is genuinely redundant. The rules discussed here apply to England, Wales and Scotland. Northern Ireland has a separate employment-law system, so you should check the applicable Northern Ireland rules if you work there.
Having two years’ service does not automatically mean every payment described as a redundancy payment is correct. Your employment status, continuity of service, the reason your job is ending and the circumstances of any alternative-work offer may all matter.
For example, someone who has worked for a company for 18 months will not normally qualify for statutory redundancy pay under the standard two-year rule. Someone with eight years of continuous service may qualify, subject to the other legal requirements.
There are also specific exceptions. GOV.UK explains that certain categories of worker are covered by different arrangements and that an employer’s offer of continued employment or suitable alternative work can affect entitlement in particular circumstances.
Read the official overview of statutory redundancy pay and the qualifying rules before relying on a calculation.
2. What is the statutory redundancy pay formula?
The standard calculation uses three factors: the number of full years that count, the age band applicable to each year, and your gross weekly pay subject to the statutory limit.
| Age during the relevant year of service | Statutory amount for each full year |
|---|---|
| Under 22 | Half a week’s pay |
| 22 to 40 | One week’s pay |
| 41 or older | One and a half weeks’ pay |
Only full years of service count towards the statutory calculation, and no more than 20 years can be included. The age bands are applied to the relevant years individually; you should not simply use your age on the day you receive your final payslip for every year.
For a straightforward case, you can think of the calculation as:
Statutory redundancy pay = total of the applicable weekly-pay multipliers for each qualifying full year, using weekly pay capped at the statutory maximum.
For redundancies taking effect on or after 6 April 2026, the statutory weekly pay limit is £751. The maximum statutory payment is £22,530.
The maximum follows from 20 years multiplied by one and a half weeks and the £751 weekly cap. It is the maximum statutory amount, not a promise that every employee will receive that sum.
3. What weekly pay figure should be used in 2026/27?
For statutory redundancy pay, weekly pay is generally based on the average you earned per week over the 12 weeks before the day you received your redundancy notice. The statutory cap means that earnings above the limit do not increase the statutory calculation beyond the capped weekly figure.
From 6 April 2026, the maximum week’s pay used for the calculation is £751. This figure replaced the previous £719 limit for relevant redundancies from that date.
| Relevant redundancy date | Maximum weekly pay used | Maximum statutory payment |
|---|---|---|
| On or after 6 April 2026 | £751 | £22,530 |
| Before 6 April 2026 | £719 under the previous limit | £21,570 under that limit |
The date matters. Do not automatically apply the new rate to a redundancy that falls under the earlier limit. If your notice, employment end date and proposed redundancy date do not line up neatly, check the relevant date for the statutory calculation rather than guessing.
If you are paid monthly, hourly or on variable shifts, your weekly pay may need to be worked out from the relevant pay records. Depending on your contractual arrangements, overtime, commission or bonus payments may also need consideration. Do not assume that your basic salary alone is always the correct figure.
The government’s guidance on calculating redundancy payments explains how weekly pay and payment limits are handled.
4. Worked examples of statutory redundancy pay
The following examples illustrate the formula. They are hypothetical calculations, not examples of actual clients. They assume eligibility, the standard statutory scheme and a redundancy taking effect on or after 6 April 2026.
Example A: An employee aged 30 with five full years of service
Assume the employee’s gross weekly pay is £500 and all five qualifying years fall within the one-week-per-year age band.
- Five full years of service count.
- Each year contributes one week’s pay.
- Five multiplied by £500 equals £2,500.
The indicative statutory redundancy payment is £2,500, assuming the facts and service dates are correct.
Example B: An employee aged 45 with ten full years of service
Assume the employee’s gross weekly pay is £800. The statutory weekly pay limit is £751, so the calculation uses £751 rather than £800. For this illustration, assume all ten years fall within the 41-or-older band.
- Ten full years count.
- Each year contributes one and a half weeks.
- Ten multiplied by 1.5 equals 15 weeks.
- Fifteen multiplied by £751 equals £11,265.
The indicative statutory payment is £11,265. In a real calculation, the age band must be checked against the employee’s age during each relevant year rather than assuming that all earlier years use the employee’s current age.
Example C: An employee with 25 years of service
Suppose an employee has worked for the same employer for 25 years. Only 20 years can count for statutory redundancy pay. The calculation must identify the relevant 20 years, apply the appropriate age multiplier to each, and use the capped weekly pay figure.
Where all 20 counted years qualify for the maximum multiplier and the weekly pay cap is £751, the calculation reaches the statutory maximum of £22,530. If some years fall in lower age bands or the weekly pay is below the cap, the amount will be lower.
These examples explain the mechanics but cannot replace checking your actual employment dates, age in each relevant year and pay history. You can use the GOV.UK statutory redundancy pay calculator to estimate your entitlement.
5. What can change the amount you receive?
Your age during each year
The applicable multiplier can change as you move through the age bands. If you have worked for the employer for many years, the calculation may need to account for years when you were under 22, years when you were 22 to 40, and years when you were 41 or older.
Your length of continuous service
The statutory calculation counts full years and is capped at 20 years. Check the start date used by your employer and whether any previous employment or break in service affects continuity. Do not assume that a transfer, rehire or change in working arrangements has either preserved or broken continuity without checking the circumstances.
Your weekly pay and pay records
Incorrect hours, missing regular payments, a wrong reference period or the use of an uncapped figure can affect the result. Compare the calculation with your payslips, contract, working hours and any relevant commission or overtime terms.
An enhanced redundancy scheme
Some employers offer contractual or discretionary redundancy terms that are more generous than the statutory minimum. The scheme’s wording matters: it may use a different formula, a different service definition or a different weekly-pay basis. Check your contract, staff handbook, collective agreement and any written redundancy policy.
The reason your job is ending
Statutory redundancy pay is not the same as payment for dismissal for misconduct, notice pay, unpaid wages or holiday pay. These are separate issues, and each may have different rules. If you are being told your role is redundant but the facts suggest a different reason for dismissal, the wider circumstances may need reviewing.
6. What should you check before accepting the calculation?
Ask your employer for a written breakdown if the proposed amount is not clear. A reliable calculation should allow you to identify the service years, age multipliers, weekly pay figure and statutory cap that have been used.
- Check your employment dates. Compare the employer’s start date and service record with your contract and any transfer or rehire documents.
- Check the years counted. Confirm that only full years are used and that the 20-year limit has been applied correctly.
- Check the age bands. Look at the relevant age for each year, not only your age today.
- Check weekly pay. Review the relevant 12-week period, payslips and any applicable contractual payments.
- Check the statutory limit. Confirm that the correct cap has been used for the relevant redundancy date.
- Check for enhanced terms. Read your contract and any redundancy policy to see whether you may be owed more than the statutory amount.
- Keep the written explanation. Save the redundancy notice, calculation, relevant policy and communications about the payment.
These checks can help distinguish a simple arithmetic error from a disagreement about legal entitlement or the meaning of your employment documents.
7. What if your statutory redundancy pay looks wrong?
Start by asking your employer or HR department to explain the calculation in writing. Identify the particular point you dispute: for example, the service start date, the weekly pay figure, the age bands or the statutory limit. A focused query is easier to investigate than a general statement that the amount seems too low.
If the employer’s response does not resolve the issue, you may wish to obtain guidance from Acas or seek advice about your particular documents and circumstances. The correct next step depends on the nature of the disagreement, the relevant dates and whether other employment issues are involved.
Do not assume that an internal discussion pauses a legal time limit. GOV.UK states that you have six months from the date your job ends to apply for statutory redundancy pay. If you believe you may need to enforce your entitlement, check the current official guidance and obtain advice promptly about the procedure and any applicable deadlines.
Where an employer is insolvent, a different payment route may apply through the Insolvency Service. Its rules on which sums it can pay and how claims are assessed are not identical to every dispute involving a solvent employer. See the official guidance for employees whose employer is insolvent if that situation applies to you.
8. When does a redundancy pay review help?
General guidance can explain the formula, but it cannot establish the correct payment where the underlying facts are disputed. A review may be useful if your employer has counted the wrong years, used an incorrect weekly pay figure, overlooked an enhanced redundancy policy or provided a calculation that does not explain how the total was reached.
The documents most likely to help are your redundancy notice, proposed payment breakdown, employment contract, payslips covering the relevant period, employment start-date records and any applicable redundancy policy or collective agreement.
A review can help identify which part of the calculation needs clarification, what supporting documents are missing and what questions to raise with your employer. It cannot guarantee that an employer will change its position or that a particular sum will be recovered.
Need your redundancy payment checked?
If you are unsure whether your employer has calculated statutory redundancy pay correctly, consider a redundancy entitlement review. Have your redundancy notice, payment breakdown, contract and relevant payslips ready so the calculation and the terms that may affect it can be examined.
Use the current approved WorkRights.co.uk route for information about the available review service and how to request it.
Frequently asked questions
How much is statutory redundancy pay in 2026?
For redundancies taking effect on or after 6 April 2026, the statutory weekly pay limit is £751 and the maximum statutory redundancy payment is £22,530. Your actual entitlement depends on eligibility, age during the relevant years, completed service and weekly pay.
Is statutory redundancy pay based on gross or take-home pay?
The calculation uses gross weekly pay, before income tax and National Insurance deductions, subject to the statutory cap and the rules for determining the relevant weekly pay figure.
Does every year of service count?
Only full years of service count, and the statutory calculation includes no more than 20 years. The multiplier for each relevant year depends on the applicable age band.
Do I qualify if I have worked for my employer for less than two years?
You will not normally qualify for statutory redundancy pay under the standard rules unless you have at least two years of continuous employment. Your employment status and the circumstances of your work may need checking, and contractual benefits may be separate.
Can I get more than the statutory redundancy amount?
Yes. Your employment contract, collective agreement or employer’s redundancy scheme may provide enhanced redundancy pay. Check the exact wording because the scheme may use its own formula and eligibility conditions.
Does overtime count towards statutory redundancy pay?
It may do, depending on your contractual pay arrangements and how your weekly pay is calculated. Review the relevant payslips and contract rather than assuming that only basic salary or every additional payment must be included.
What if my employer has used the wrong weekly pay limit?
Ask for a written breakdown and check the date relevant to your redundancy. The £751 limit applies to redundancies taking effect on or after 6 April 2026; the previous £719 limit applied to relevant redundancies before that date.
What should I do if my employer refuses to correct the calculation?
Keep the calculation and supporting records, explain the specific error in writing, and consider contacting Acas or seeking advice about your circumstances. If you may need to enforce your entitlement, check the applicable procedure and deadlines promptly.
Is redundancy pay the same as notice pay and holiday pay?
No. Statutory redundancy pay, notice pay, outstanding wages and accrued holiday pay are separate payment categories. You may need to check each separately when reviewing your final employment payments.
Official sources and further guidance
- GOV.UK: Statutory redundancy pay and eligibility
- GOV.UK: Calculate your statutory redundancy pay
- GOV.UK: Explaining your redundancy payments
- Employment Rights Act 1996: statutory redundancy provisions
- Acas: workplace rights and dispute guidance
This article provides general information about employment law in Great Britain as at 12 October 2026. It is not personalised legal advice and does not create a solicitor-client relationship. Your entitlement may depend on your employment status, dates, contract, pay arrangements and the specific circumstances of the redundancy. Statutory limits and official guidance can change; check the current official sources before acting.