How statutory redundancy pay is calculated
Statutory redundancy pay uses three inputs: your age (at the date of redundancy), your gross weekly pay, and the number of complete years you have worked for the employer. The weekly pay is capped at £751 for 2026. Service is capped at 20 years.
The redundancy pay formula
The calculation counts backwards from your current age for each full year of service, applying the band rate for that year: 0.5 weeks' pay per year for ages under 22, 1 week's pay per year for ages 22 to 40, and 1.5 weeks' pay per year for ages 41 and over. Total weeks are capped at 30.
Weekly pay cap and service cap
Even if your weekly pay is above £751 or you have more than 20 years of service, the calculation caps these values. The cap on weekly pay is reviewed each April.
Important: This is a planning aid only. Statutory redundancy pay eligibility depends on continuous service, employment status, and the redundancy being genuine. Check with Acas or an employment adviser.
FAQs
How is statutory redundancy pay calculated?
Statutory redundancy pay is based on three factors: your age, your weekly pay, and the number of full years you have worked. The formula gives more weeks for older workers.
What is the maximum weekly pay used in the calculation?
The 2026 weekly pay cap is £751. If your weekly pay is above this, the cap is used for the calculation. This cap is reviewed each April.
What is the maximum number of years counted?
Years of service are capped at 20 years. Working for more than 20 years does not increase the redundancy pay beyond the 20-year calculation.
Who is eligible for statutory redundancy pay?
Employees with at least 2 years of continuous service are entitled to statutory redundancy pay. The right applies to employees aged 16 to 64.