Am I entitled to statutory redundancy pay?

You qualify for statutory redundancy pay if you are an employee (not self-employed or a worker), you have been continuously employed by the same employer for at least 2 years, and you have been made redundant. Employees under 2 years' continuous service have no statutory redundancy entitlement, though your employer may offer an enhanced scheme.

How is statutory redundancy pay calculated?

Redundancy pay is based on your age, length of service, and weekly gross pay. You receive: 1.5 weeks' pay for each full year of service when you were 41 or older; 1 week's pay for each year when you were aged 22-40; and half a week's pay for each year under age 22. Service is capped at 20 years and weekly pay is capped at £751 for 2026/27. The maximum statutory payment is therefore £22,530.

Is redundancy pay taxable?

The first £30,000 of a genuine redundancy payment (including statutory redundancy pay) is tax-free. Amounts above £30,000 are taxed as income. Statutory redundancy pay alone is almost always below £30,000, so it is usually entirely tax-free. Payments in lieu of notice (PILON), holiday pay, and bonuses are taxed normally and do not benefit from the £30,000 exemption.

Does my employer have to pay more than the statutory amount?

No. The statutory amount is the legal minimum. However, many employers offer enhanced redundancy schemes that pay more, for example no cap on weekly pay, more weeks per year of service, or a higher multiplier. Check your employment contract and any company policies. Enhanced payments above the statutory amount are still usually tax-free up to the £30,000 limit.

What if my employer refuses to pay redundancy?

If your employer is insolvent and cannot pay, you can claim from the National Insurance Fund via the Insolvency Service and will receive the statutory amount from the government. If your employer simply refuses to pay despite being solvent, you can make a claim to an Employment Tribunal. The deadline for a tribunal claim is typically 3 months less one day from your last day of employment.

Does part-time work affect redundancy pay?

Part-time employees have the same redundancy rights as full-time employees. Weekly pay for redundancy purposes is based on a week's actual gross pay. If pay varies (for example shift work or overtime), the average weekly earnings over the 12 weeks before the redundancy notice are used.

Tax & Income

Redundancy Pay Calculator

Calculate your statutory redundancy pay entitlement for 2026/27 based on your age, years of service, and salary.

Updated April 2026

Your details

Age at dismissal date

Complete years of continuous service

Only complete years count. Must be 2+ years to qualify.

Enter salary as

Annual gross salary

Weekly equivalent: £550.00 · Capped at £751 for statutory purposes

Your results

Redundancy Pay After 7 Years at £28,600

Statutory redundancy pay

£3,850

7.0 weeks' pay

Years counted: 7
Weekly pay used: £550.00
Total weeks' pay: 7.0 weeks
Total redundancy pay: £3,850

Breakdown

Pay breakdown by age band, working back from your current age through your years of service
Age band	Years	Multiplier	Weeks' pay	Amount
Aged 22 to 40	7	1x	7.0	£3,850
Total			7.0 weeks	£3,850

Tax treatment: The first £30,000 of a genuine redundancy payment is tax-free. Your statutory redundancy pay of £3,850 is well within this limit and is entirely tax-free.

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Frequently asked questions

Sources & methodology

Built and maintained by Tim, a personal finance enthusiast (not a financial adviser). Last reviewed April 2026. Rates and thresholds come from official UK government publications.

HMRC: Income Tax rates and allowances · Official rates, bands and thresholds
GOV.UK: National Insurance rates · Employee and employer NI rates
Scottish Government: Income Tax · Scottish income tax rates and bands
GOV.UK · UK government legislation and guidance
HMRC · Tax rates, thresholds and official guidance

Figures are estimates only. This is not financial or tax advice. For help with your specific situation, speak to HMRC or a qualified adviser.