How much statutory redundancy pay do I get after 20 years in 2026/27?

Full answer

Statutory redundancy pay is based on your age in each year of continuous service, your length of service, and your weekly pay subject to a statutory cap uprated each April -- crucially, only the most recent 20 years of continuous service count, even if you have worked longer for the same employer. For each full year you get half a week's pay for years under 22, one week's pay for years aged 22 to 40, and one and a half weeks' pay for years aged 41 and over. After exactly 20 years all at age 41 or over, you receive the statutory maximum of 30 weeks' pay (20 x 1.5). Someone aged 22 to 40 throughout their 20 years receives 20 weeks' pay instead, since the multiplier is lower for that age band. In practice, most people with 20 years of service will have passed through more than one age band, so the calculation is done year by year and the final figure typically falls between 20 and 30 weeks depending on the exact age profile. Because weekly pay is capped at a statutory limit, the maximum possible statutory redundancy payment (30 weeks at the cap) is a fixed ceiling each tax year, regardless of how high your actual salary is -- many employers with generous redundancy schemes pay well above this statutory minimum. The first £30,000 of any redundancy payment (statutory plus any enhanced element) is tax-free. Use the redundancy pay calculator for your precise entitlement.

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