Answers · UK 2025/26
How much statutory redundancy pay will I get?
Statutory redundancy pay is based on age and length of service. You get 0.5 week's pay per year for service under age 22, 1 week per year aged 22–40, and 1.5 weeks per year aged 41+. Weekly pay is capped at £719 (2025/26) and maximum 20 years count.
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For 2025/26, statutory redundancy pay (after at least 2 years of continuous service with one employer) is calculated as: 0.5 week's pay for each full year of service while under age 22; 1 week's pay for each full year aged 22 to 40; 1.5 week's pay for each full year aged 41 and over. Weekly pay is capped at £719 (from 6 April 2025), so the maximum statutory redundancy payment is 30 × £719 = £21,570 (20 years cap × max 1.5 weeks). Statutory redundancy is tax-free up to £30,000. Anything above £30,000 — for example contractual enhanced redundancy — is subject to Income Tax and Class 1 NICs in the normal way. Notice pay (PILON) is fully taxable. You can use the gov.uk redundancy calculator or the CalcHub Redundancy Pay Calculator to model your specific situation. If your employer is insolvent, you can claim statutory redundancy from the National Insurance Fund via the Insolvency Service.
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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.