I have been made redundant. How much statutory redundancy pay am I owed?

Short answer

Statutory redundancy pay is calculated using your age, weekly pay (capped at £643 from April 2026), and years of continuous service. You qualify after two years. The formula is: half a week's pay per year under 22; one week's pay per year between 22 and 40; one and a half week's pay per year aged 41 or over.

Your employer's contract may offer enhanced redundancy pay above the statutory minimum. The statutory figure is a floor — you cannot be paid less.

1 The rule

The right to statutory redundancy pay is set out in the Employment Rights Act 1996. The calculation method is fixed by statute — neither employer nor employee can contract out of it downwards.

The weekly pay cap is reviewed annually. From April 2026 the cap is £643 per week. The maximum statutory redundancy payment is therefore £19,290 (30 weeks × £643).

2 What you can do now

1. 1
   Confirm you qualify

   You must have been continuously employed for at least two years at the effective date of termination. Check your start date — continuous employment can survive certain breaks such as a TUPE transfer. Short gaps caused by illness or lay-off do not always break continuity.

2. 2
   Find your weekly pay

   If you work fixed hours, weekly pay is your gross pay for a normal working week. If hours vary, it is averaged over the 12 weeks before the redundancy date. Cap the figure at £643 (from April 2026). If your actual weekly pay is lower than the cap, use the actual figure.

3. 3
   Count your complete years of service

   Only complete years count. Partial years are ignored. The maximum is 20 years — service beyond 20 years is not included in the statutory calculation. Count backwards from the effective date of termination.

4. 4
   Apply the age-based multiplier

   For each complete year of service: 1.5 weeks if you were 41 or over during that year; 1 week if you were 22–40; 0.5 weeks if you were under 22. Add the weeks together and multiply by your (capped) weekly pay.

5. 5
   Check your payslip and request a written statement

   Your employer must give you a written statement showing how the redundancy pay was calculated. If the amount on your payslip differs from your calculation, raise a grievance in writing. If unresolved, you can apply to an Employment Tribunal.

3 When this does not apply

• You have been employed for less than two years continuously.
• You were offered suitable alternative employment and unreasonably refused it — you may lose the right to statutory redundancy pay.
• You resigned rather than being dismissed, unless you resigned in response to a genuine redundancy situation (constructive dismissal).
• You committed gross misconduct during the notice period — the employer may withhold payment.

4 Common questions