Statutory redundancy pay is the legal minimum your employer must pay if you're an employee, you're made redundant and you've worked for them for 2 years or more. It's worked out from your age, your weekly pay (capped at £751 for redundancies on or after 6 April 2026) and your years of service (capped at 20). The most anyone can get is £22,530, according to GOV.UK.
This guide covers England, Scotland and Wales, using GOV.UK and Acas. Northern Ireland has its own figures, so check nidirect if you work there. This is general information, not legal or financial advice. For free, impartial advice on your situation, contact Acas or Citizens Advice.
If the news is fresh, our checklist for the first days after losing your job covers what to do first.
Who gets statutory redundancy pay?
You're usually entitled if:
- you have employee status
- you've worked continuously for your employer for 2 years or more
- you've been selected for redundancy
Acas says you're not likely to be an employee if you're an agency worker, a casual worker or on a zero-hours contract. Some jobs are excluded entirely, including the armed forces, Crown servants, the police and certain domestic service.
You may lose the right to statutory redundancy pay if your employer offers to keep you on, or offers suitable alternative work and you unreasonably turn it down (more on that below).
Statutory redundancy pay rates by age
GOV.UK sets three bands. You get, for each full year of service:
| Your age during that year of service | Statutory redundancy pay |
|---|---|
| Under 22 | Half a week's pay |
| 22 to 40 | One week's pay |
| 41 and over | One and a half weeks' pay |
Only full years count, and service is capped at 20 years.
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What is the weekly pay cap for redundancy pay?
For redundancies on or after 6 April 2026, GOV.UK says your weekly pay is capped at £751, and the maximum statutory redundancy pay is £22,530. If you were made redundant before 6 April 2026, the amounts are lower. Acas, in a page updated on 7 April 2026, gives the same figures.
If you earn more than £751 a week, your redundancy pay is worked out on £751. If you earn less, it's worked out on your actual weekly pay.
How is a week's pay worked out?
Acas explains:
- It's your gross weekly pay, before tax.
- If your hours and pay are regular, it's your normal weekly pay.
- If your pay varies, it's based on your average hourly rate over 12 weeks.
- It can include guaranteed overtime in your contract, and contractual bonuses or commission.
Redundancy calculator: work out your figure
The quickest way is the official GOV.UK redundancy pay calculator. It asks for your age, your weekly pay and how many years you've worked for your employer.
A worked example
This is our own illustration using the GOV.UK bands and cap. Use the calculator for your real figure.
Priya is 45 when she's made redundant. She has worked for her employer for 10 full years, so those years cover ages 35 to 44. Her gross pay is £900 a week.
| Step | Working |
|---|---|
| Years aged 41 and over (41, 42, 43, 44) | 4 years × 1.5 weeks = 6 weeks |
| Years aged 22 to 40 (35 to 40) | 6 years × 1 week = 6 weeks |
| Total weeks | 12 weeks |
| Weekly pay used | £751 (her £900 is above the cap) |
| Statutory redundancy pay | 12 × £751 = £9,012 |
Is redundancy pay taxable?
GOV.UK says "statutory redundancy pay under £30,000 is not taxable". Your final pay may include other things too, such as holiday pay, unpaid wages and bonuses, and what you pay tax and National Insurance on depends on what's included. Check your final payslip line by line.
When should redundancy pay be paid?
Acas says payment should be made when your employment ends or on your final pay date, unless you and your employer agree a different date in writing.
What if your employer doesn't pay?
- Write to your employer as soon as you can. Say what you're owed, include evidence such as payslips, and ask them to pay by a set date.
- Contact Acas for free advice if that doesn't work. You may be able to make an employment tribunal claim.
- Watch the deadline. Acas gives 6 months minus 1 day from the date your job ends for a statutory redundancy pay claim, and 3 months minus 1 day for contractual redundancy pay.
- If your employer is insolvent, you can apply to the Redundancy Payments Service.
What are your redundancy rights?
Redundancy pay is one of several rights. GOV.UK lists them as redundancy pay, a notice period, consultation, the option to move into a different job, and time off to look for work.
Notice periods
Statutory minimum notice periods are:
| Length of service | Minimum notice |
|---|---|
| 1 month to 2 years | At least 1 week |
| 2 to 12 years | 1 week for each full year |
| 12 years or more | 12 weeks |
Your contract may give you longer. Your employer can end your employment without notice if your contract includes payment in lieu of notice, and may offer it even if your contract doesn't mention it. Our glossary explains notice periods and garden leave.
Consultation
If your employer is making 20 or more redundancies, collective consultation must start at least 30 days before any dismissals take effect for 20 to 99 redundancies, and at least 45 days before for 100 or more. It must cover ways to avoid redundancies, the reasons, how to keep the number of dismissals down and how to limit the effects. Where there's no trade union, employees elect representatives. For up to 19 redundancies there are no set rules on how to consult, though GOV.UK says you may be able to bring a tribunal claim if your employer doesn't consult properly.
Fair selection
Your employer should use a fair and objective way of selecting people for redundancy, such as length of service, appraisals, skills, qualifications and experience. You cannot be selected because of, among other things, your sex, race, disability, age, religion or belief, trade union membership, pregnancy or maternity leave, whistleblowing or jury service. If you think you were unfairly selected, you can appeal in writing to your employer and may be able to claim unfair dismissal at an employment tribunal.
Suitable alternative employment
Your employer might offer you another job in the organisation or an associated company. You have the right to a 4-week trial period in it. If you unreasonably turn down suitable alternative employment, you may lose your statutory redundancy pay. If you're on, or have recently taken, maternity or other parental leave, your employer must offer you a suitable vacancy if one exists.
Paid time off to look for work
If you'll have 2 years' continuous service by the end of your notice period, Acas says your employer must allow you a reasonable amount of time off during your notice to look for work or arrange training. They only have to pay up to 40% of one week's pay for that time off, however much you take, unless your contract says otherwise.
What to do after redundancy
- Check your final pay. Redundancy pay, notice pay, holiday pay and any bonus or commission. Ask for a written breakdown.
- Read any settlement agreement carefully. You need independent advice for it to be valid. Our severance negotiation guide covers what to ask for.
- Claim benefits if you're eligible. In Great Britain, New Style Jobseeker's Allowance depends on your National Insurance record, and your savings don't affect it. Universal Credit is for people with £16,000 or less in savings. Our guide to claiming unemployment benefits covers both.
- Contact the Rapid Response Service. Jobcentre Plus helps with CVs, job searching, training and some costs such as travel or childcare, from when you suspect redundancy until 13 weeks after (GOV.UK). Scotland (PACE) and Wales (ReAct) have their own services.
- Check your pension. Ask your employer or pension provider how redundancy affects your workplace pension. If you're 50 or over with a defined contribution pension, GOV.UK says you can get free pension guidance from MoneyHelper.
- Get debt help early if money is tight. GOV.UK points to Breathing Space and free debt advice through MoneyHelper.
- Plan your way back into work. Decide how you'll describe the redundancy on applications. Redundancy is about the role, not you. Our guides to reason for leaving a job and explaining a gap help with wording.
When you're ready to apply, it helps to show employers what you can do. You can practise on a job simulation of the work in the role you're aiming for and get a scored report on where you lost marks, so you know what to work on before interviews. It's free to start.
If redundancy has knocked you badly, talk to someone. Samaritans answer on 116 123, free, 24 hours a day, in the UK and Ireland.
FAQs
Can I get redundancy pay with less than 2 years' service?
Not statutory redundancy pay. Check your contract or staff handbook, as your employer may offer contractual redundancy pay with different rules.
Is the £751 cap before or after tax?
Redundancy pay is based on your gross weekly pay, before tax, and the cap applies to that figure. The £751 cap applies to redundancies on or after 6 April 2026.
Does redundancy pay affect benefits?
Your savings don't affect New Style JSA. Universal Credit is only for people with £16,000 or less in savings, so a redundancy payment can affect a Universal Credit claim. If you already get benefits, you must report the job loss and declare any redundancy pay.
Can I volunteer for redundancy?
You can, but GOV.UK says it's up to your employer whether they select you.
What's the difference between redundancy and being fired?
GOV.UK describes redundancy as a form of dismissal that happens when an employer needs to reduce its workforce. See our guide to laid off vs fired and our glossary entry on redundancy.
Sources
Checked 2 November 2026. This is general information, not legal or financial advice.
- GOV.UK: Redundancy: your rights, including Statutory redundancy pay, Tax and National Insurance, Notice periods, Consultation, Suitable alternative employment, Being selected for redundancy and Get help finding a new job
- GOV.UK: Calculate your statutory redundancy pay
- GOV.UK: Being made redundant: finding work, claiming benefits and managing debts
- Acas: Redundancy pay and Finding a job with a new employer
- nidirect: Redundancy pay (Northern Ireland)
- Samaritans