The legal minimum your employer must pay if you are made redundant after at least two years’ service.
Statutory redundancy pay
£4,550.00
The first £30,000 of a redundancy payment is usually tax-free. Your contract may give you more than the statutory minimum.
Statutory redundancy pay
You qualify after two years of continuous employment. Weekly pay is your average gross weekly pay, capped at £751 for redundancies on or after 6 April 2026 (Employment Rights (Increase of Limits) Order 2026). Only the last 20 years of service count. Your contract may give you more than the statutory amount. Source: gov.uk.
For each full year of service (up to 20): half a week’s pay for years when you were under 22, one week for years aged 22 to 40, and a week and a half for years aged 41 or older. Someone aged 42 with 6 years’ service earning £650 a week gets 7 weeks’ pay, £4,550.00.
For redundancies on or after 6 April 2026, weekly pay is capped at £751 in England, Scotland and Wales, so the maximum payment is £22,530 (30 weeks). In Northern Ireland the cap is £783.
The first £30,000 of a genuine redundancy payment is usually free of income tax and National Insurance. Notice pay and holiday pay are taxed as normal earnings.
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