Answers · UK 2025/26
How much statutory redundancy pay do I get after 25 years in 2026/27?
Statutory redundancy pay only counts a maximum of 20 years' continuous service, even after 25 years with the same employer. A worker aged 41 or over throughout the counted years gets the maximum 30 weeks' pay (20 x 1.5); someone aged 22 to 40 throughout gets 20 weeks -- exactly the same as after 20 years' service.
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Statutory redundancy pay is capped at a maximum of 20 years of continuous service, so working for 25 years with the same employer does not entitle you to any more statutory redundancy pay than working for exactly 20 years -- the calculation simply counts the most recent 20 qualifying years and ignores the extra 5. For each full year counted you get half a week's pay for years worked under 22, one week's pay for years worked aged 22 to 40, and one and a half weeks' pay for years worked aged 41 and over. A worker who was 41 or over throughout their most recent 20 qualifying years receives the statutory maximum of 30 weeks' pay (20 x 1.5), while someone who was 22 to 40 throughout receives 20 weeks -- identical to the figures for exactly 20 years' service. Weekly pay used in the calculation is limited to a statutory cap set each April, so long-serving higher earners in particular do not receive the full benefit of their actual salary in the statutory formula, though many employers with long-serving staff offer enhanced contractual redundancy terms well above the statutory minimum to reflect genuine loyalty and service. The first £30,000 of any redundancy payment remains free of Income Tax and National Insurance regardless of length of service. Use the redundancy pay calculator to confirm your exact statutory entitlement.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.