Calculate your statutory redundancy pay entitlement. Based on your age, length of service and weekly pay — updated for 2025/26 with a weekly pay cap of £643.
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If you are made redundant and have worked for your employer for at least 2 years, you are entitled to statutory redundancy pay. The amount depends on your age, length of service and weekly pay.
For each year of service you receive a number of weeks' pay based on your age during that year:
The maximum number of years that count is 20. Weekly pay is capped at £643 for 2025/26.
You must have worked for your employer for at least 2 years continuously to qualify for statutory redundancy pay. If you have less than 2 years' service you have no statutory entitlement, though your employer may offer an ex-gratia payment.
The first £30,000 of redundancy pay is completely tax free. This includes statutory redundancy pay and any enhanced redundancy payment. Payments above £30,000 are taxable as income in the tax year you receive them.
Many employers offer more than the statutory minimum — this is enhanced redundancy pay. The first £30,000 combined (statutory + enhanced) remains tax free.
In addition to redundancy pay you are also entitled to your statutory notice period (or payment in lieu) and any accrued but untaken holiday pay. Note that notice pay and holiday pay are taxable as normal income — they do not benefit from the £30,000 tax-free limit.
If your employer becomes insolvent and cannot pay your redundancy, you can claim from the Redundancy Payments Service (RPS) via the Insolvency Service. The statutory amount is guaranteed by the government.