Who qualifies for statutory redundancy pay
An employee is entitled to statutory redundancy pay if they have at least 2 years' continuous service and are made redundant (source: GOV.UK — Redundancy pay). It is the legal minimum; a contract or settlement can offer more.
How statutory redundancy pay is calculated
Pay is based on age, length of service and weekly pay. For each full year of service you get (source: GOV.UK; see also ACAS — Work out redundancy pay):
- half a week's pay for each full year the employee was under 22
- one week's pay for each full year they were 22 or older but under 41
- one and a half weeks' pay for each full year they were 41 or older
The age band is based on the employee's age during each year, working backwards from the redundancy date. Only the last 20 years of service count.
The weekly pay cap and maximum
The calculation uses gross (before-tax) weekly pay, but a week's pay is capped. For redundancies on or after 6 April 2026, the weekly pay is capped at £751 and the maximum statutory redundancy pay is £22,530 (that is 20 years × 1.5 weeks × £751). The figures rise most years in April (source: GOV.UK; The Employment Rights (Increase of Limits) Order 2026).
A worked example
GOV.UK's own example: an employee aged 45 with 22 years' service (only the last 20 count). They were 41 or older for 4 of those years (1.5 weeks each = 6 weeks) and aged 22–40 for the other 16 years (1 week each = 16 weeks), giving 22 weeks' pay. Multiply by their capped weekly pay to get the amount.
Tax
Statutory redundancy pay is tax-free (source: GOV.UK). Other parts of a redundancy package can be taxable, so check the current position on GOV.UK for anything beyond the statutory amount.
Sources
This tool applies the statutory rules from primary sources — confirm your own figures against them: GOV.UK redundancy pay, the GOV.UK redundancy pay calculator, ACAS redundancy pay and the Employment Rights (Increase of Limits) Order 2026. This is a guide, not legal advice.