How statutory redundancy pay is calculated in the UK
Understand the UK statutory redundancy pay formula for 2026/27, including age bands, complete years of service, the 20-year limit and £751 weekly-pay cap.
The statutory redundancy pay formula
For eligible employees in Great Britain, statutory redundancy pay uses your age during each complete year of service, your weekly pay and up to 20 years of continuous employment. You normally need at least two years of continuous service.
Each complete service year worked while under 22 counts as half a week's pay.
Each complete service year worked from age 22 through 40 counts as one week's pay.
Each complete service year worked from age 41 counts as one and a half weeks' pay.
For redundancies on or after 6 April 2026, weekly pay is capped at £751 and no more than 20 years of service can count. The resulting statutory maximum is £22,530.
Which years count?
The calculation works through complete years of service and applies the age band that covered each year. This matters when your service crosses age 22 or 41. The most recent 20 years are used if you have worked for the employer for longer.
Your weekly pay can require a statutory averaging calculation if your pay varies. For a quick estimate, use the NetSlip redundancy pay calculator.
What statutory redundancy pay does not include
Your final leaving package can also contain notice pay, unpaid wages, accrued holiday and an enhanced redundancy payment. Those amounts are separate from the statutory redundancy calculation and can be taxed differently.
Rules checked against GOV.UK and Acas for 2026/27. This guide covers Great Britain; Northern Ireland has separate limits and guidance.
Common questions
Normally yes. Statutory redundancy pay generally requires at least two years of continuous employment.
A maximum of 20 years of service can be used in the statutory calculation.
Yes. Complete service years are weighted at 0.5, 1 or 1.5 weeks of pay depending on your age during each year.