Employees with at least 2 years’ continuous service get statutory redundancy pay: half a week’s pay for each full year under 22, one week for each year aged 22 to 40, and one and a half weeks for each year aged 41 and over, for up to 20 years. For redundancies on or after 6 April 2026 a week’s pay is capped at £751, so the most anyone can get is £22,530.
Step by step
- Check serviceAt least 2 years’ continuous employment.
- Count back from the redundancy dateUp to 20 full years.
- Weight each year by age0.5, 1 or 1.5 weeks.
- Cap a week’s payAt £751 for redundancies on or after 6 April 2026.
- MultiplyWeeks × a week’s pay.
Worked example. An employee aged 45 with 10 full years’ service earns £800 a week. The 4 most recent years at 41 or over give 6 weeks; the 6 before that at 22 to 40 give 6 weeks: 12 weeks. Pay is capped at £751, so 12 × £751 = £9,012.
| Age during the year of service | Weeks per full year |
|---|---|
| Under 22 | 0.5 |
| 22 to 40 | 1 |
| 41 and over | 1.5 |
Frequently asked questions
How much is statutory redundancy pay?
Up to 1.5 weeks’ pay per full year depending on age, up to 20 years, with a week’s pay capped at £751.
Do I need 2 years’ service?
Yes, to get statutory redundancy pay.
Is redundancy pay taxable?
GOV.UK says redundancy pay up to £30,000 is not taxable.
Sources
Related guides
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This guide is general information, not legal or tax advice. Last checked 4 November 2026. Rules change; check the sources above.