How Much Redundancy Pay Will I Get?

If you are being made redundant, one of the first things you will want to know is how much money you should receive. Your redundancy package is usually made up of several separate parts, and it is common for employers to get the figures wrong. This guide explains exactly how statutory redundancy pay is calculated in 2026, what else you are owed, and how to check the amount is correct.

Who is entitled to statutory redundancy pay?

You are legally entitled to statutory redundancy pay if you are an employee with at least two years of continuous service and you are dismissed because of genuine redundancy. Agency workers and the genuinely self-employed do not qualify.

If your role is being cut but your employer is calling it something else, it is worth checking whether the redundancy is genuine. We cover the warning signs in our guide on genuine versus sham redundancy.

How statutory redundancy pay is calculated

Statutory redundancy pay is based on three things: your age, your length of service, and your weekly pay. For each full year you have worked, you receive:

• Half a week's pay for each full year you were under the age of 22

• One week's pay for each full year you were aged 22 to 40

• One and a half weeks' pay for each full year you were aged 41 or over

Two limits apply. Only your last 20 years of service count, and a week's pay is capped at £751 for redundancies on or after 6 April 2026. This means the maximum statutory redundancy payment in 2026 is £22,530 (20 years multiplied by £751 multiplied by 1.5).

A worked example

Sara is 45 and has worked for her employer for 8 full years. She earns £600 per week, which is below the cap, so her actual weekly pay is used. Because every one of those years was worked while she was over 41, she receives one and a half weeks' pay for each year: 8 years multiplied by 1.5 equals 12 weeks' pay. Her statutory redundancy pay is 12 multiplied by £600, which is £7,200.

If Sara earned £900 per week, the £751 cap would apply instead of her full wage, so her figure would be 12 multiplied by £751, which is £9,012.

What else should be in your redundancy package?

Statutory redundancy pay is only one part of what you are owed. A proper redundancy package should also include:

• Notice pay. You are entitled to statutory notice of one week for each full year of service, up to a maximum of 12 weeks, or your contractual notice if it is longer. You either work this notice or are paid in lieu of it.

• Holiday pay. Any holiday you have built up but not taken must be paid up to your final day.

• Enhanced redundancy pay. Many employers offer more than the legal minimum. Always check your contract, staff handbook and any company redundancy policy.

Is redundancy pay taxed?

Statutory redundancy pay is tax-free. Genuine redundancy and other compensation payments are also free of income tax and National Insurance up to a total of £30,000. Notice pay and holiday pay are treated as earnings and are taxed in the normal way.

How to check your employer has paid the right amount

Common mistakes include using your take-home pay instead of your gross pay, miscounting your years of service, ignoring an enhanced scheme in your contract, or applying the wrong age multiplier. You can check the statutory figure using the official calculator on GOV.UK, but it will not pick up contractual enhancements, so read your paperwork carefully.

If your employer cannot pay because it is insolvent, you can claim your statutory redundancy pay from the government's Redundancy Payments Service, subject to the same £751 weekly cap.

What if I think the amount is wrong?

If your employer refuses to pay statutory redundancy pay or pays too little, you can bring a claim in the Employment Tribunal. The time limit is strict: you normally have six months less one day from the date your employment ended. If the redundancy process itself was unfair, you may also have a separate unfair dismissal claim, which has a shorter time limit of three months less one day.

Should I just accept a settlement instead?

Employers often offer a settlement agreement rather than running a full redundancy process. This can be worth more than your statutory entitlement, but only if it is negotiated properly. See our guides on being offered a settlement agreement instead of redundancy and how to negotiate a settlement agreement.

Frequently asked questions

Do I get redundancy pay if I have worked less than two years?
No. Statutory redundancy pay requires at least two years of continuous service. You may still be owed notice pay and holiday pay, and your employer may offer enhanced terms.

Does my weekly pay mean my salary before or after tax?
Before tax. Statutory redundancy pay uses your gross weekly pay, then applies the £751 cap if your pay is higher than that.

Are bonuses and overtime included in a week's pay?
Regular contractual overtime and some bonuses can count towards a week's pay, but the rules are detailed and depend on your contract and working pattern. It is worth taking advice if a large part of your income is variable.

Can I be made redundant while on maternity leave or sick leave?
Yes, but only if the redundancy is genuine and the process is fair. Employees on maternity, adoption or shared parental leave have extra protection and priority for suitable alternative roles. If you suspect your leave is the real reason, take advice quickly.

How long does my employer have to pay redundancy money?
It is usually paid on or shortly after your final day, or on the next normal payday. If it is late or missing, raise it in writing and seek advice.

Speak to an employment law specialist

If you are not sure your redundancy package is right, or you think the redundancy is not genuine, we can review your situation and tell you where you stand. Book a 30-Minute Advice Session — £99 for direct telephone advice and a written summary, or request a free case review first.

Related guides: Is your redundancy genuine or a sham? and Offered a settlement agreement instead of redundancy?