Answers · UK 2025/26
What is the maximum statutory redundancy pay in 2026?
The weekly pay cap for statutory redundancy is £751 (from April 2026). Maximum award: 1.5 weeks × 20 years × £751 = £22,530. Redundancy pay up to £30,000 is tax-free; the excess is taxed as employment income.
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Statutory redundancy pay in 2026/27 uses a weekly pay cap of £751 (reviewed each April). The formula depends on age and years of service: 0.5 week's pay per year worked under age 22, 1 week's pay per year worked between 22 and 40, and 1.5 weeks' pay per year worked aged 41 or over. Service is capped at 20 years. Maximum possible statutory redundancy: 1.5 × 20 × £751 = £22,530. Payments up to £30,000 (including any ex-gratia element) are tax-free. Any redundancy payment above £30,000 is taxable as employment income — but it is not subject to National Insurance. Enhanced redundancy packages offered by employers can exceed statutory minimums. Use the Redundancy Pay calculator to work out your statutory entitlement based on age, service and salary.
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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.