Statutory Redundancy Pay 2026: UK Rates and Examples

Quick answer: Statutory redundancy pay in 2026 is half a week's pay for each full year worked under 22, one week's pay for each year aged 22 to 40, and one and a half weeks' pay for each year aged 41 or over. In England, Scotland and Wales weekly pay is capped at £751, so the maximum is £22,530.

Key takeaways

You normally qualify for statutory redundancy pay only if you are an employee with at least 2 years' continuous service with your current employer.
For redundancies on or after 6 April 2026 in England, Scotland and Wales, weekly pay is capped at £751 and the most you can receive is £22,530.
Northern Ireland uses its own figures: nidirect lists a £783 weekly cap and a £23,490 maximum.
Only 20 years of service count, and up to £30,000 of redundancy pay is tax free.
If your employer does not pay, you generally have 6 months minus 1 day from the date your job ends to claim statutory redundancy pay at a tribunal.

Last updated: 11 October 2026

Statutory redundancy pay 2026 is the legal minimum an employer must pay when your job disappears, and it matters to many workers this year. Royal Mail, for example, has said up to 2,500 head office and support roles could go, and it hopes to manage the cuts through natural attrition and voluntary redundancy. Whether you are facing a consultation or simply want to know where you stand, the figure you are owed comes from three things: your age, your years of service and your weekly pay.

This guide sets out the current caps for Great Britain and Northern Ireland, walks through three worked examples, and explains tax, timing and what to do if the money never arrives.

Statutory redundancy pay 2026: how much is it?

For redundancies on or after 6 April 2026 in England, Scotland and Wales, the weekly pay figure used in the sum is capped at £751 and the overall maximum is £22,530. Anyone whose redundancy took effect earlier than 6 April 2026 falls under lower limits.

The amount builds up year by year according to how old you were during each full year of service:

Years worked while aged 21 or under: half a week's pay per full year
Years worked while aged 22 to 40: one week's pay per full year
Years worked while aged 41 or over: one and a half weeks' pay per full year
Service limit: no more than 20 years can be counted
Weekly pay cap (Great Britain): £751, even if you earn more
Maximum payment (Great Britain): £22,530

The £22,530 ceiling is simply 20 years at the top rate of one and a half weeks, multiplied by the £751 cap. Many payments are lower, because they depend on age, service and pay.

Who qualifies for statutory redundancy pay?

You normally qualify if you are an employee, you have been selected for redundancy and you have worked continuously for your employer for 2 years or more. Employment status matters, because only employees qualify.

The Advisory, Conciliation and Arbitration Service (Acas) says agency workers, casual workers and people on zero-hours contracts are unlikely to have employee status. Under the GOV.UK rules, some groups are excluded altogether:

members of the armed forces and police services
Crown servants
domestic servants who are part of the employer's immediate family
apprentices who are not employees when their training ends
former registered dock workers and share fishermen

You can also lose the right if your employer offers to keep you on, or offers suitable alternative work that you turn down without good reason. Dismissal for misconduct is not redundancy, so it does not trigger a payment.

How do you work out your weekly pay?

Your weekly pay is your gross pay before tax and deductions. On GOV.UK it is described as the average you earned per week over the 12 weeks before you received your redundancy notice.

Acas adds some detail that is easy to miss:

Guaranteed overtime written into your contract counts towards weekly pay.
Contractual bonuses and commission you are entitled to also count.
If your weekly pay varies, the figure is based on your average hourly rate over 12 weeks.
If you are on maternity, paternity, adoption, shared parental, carer's or neonatal care leave, your normal contractual pay is used, not the lower leave pay.

Worked examples: what would I actually get?

Multiply your qualifying weeks by your weekly pay, using the £751 cap if you earn more. The three examples below were calculated by Jobsiz using the Great Britain rules; they are illustrations, not legal advice.

Example 1: aged 30, six years' service, £600 a week

All six years were worked aged 22 or over, so that is six weeks. Six weeks multiplied by £600 gives £3,600.

Example 2: aged 45, 15 years' service, £900 a week

Four of those years were worked aged 41 or over (six weeks) and eleven were worked aged 22 to 40 (eleven weeks), making 17 weeks. Weekly pay is capped at £751, so 17 multiplied by £751 gives £12,767, not the £15,300 an uncapped sum would suggest.

Example 3: aged 24, five years' service, £420 a week

Three years were worked aged 21 or under (one and a half weeks) and two years aged 22 or 23 (two weeks), making three and a half weeks. Three and a half multiplied by £420 gives £1,470.

To check your own figure, use the official redundancy pay calculator on GOV.UK; you will need your gross weekly pay to hand.

Is redundancy pay different in Northern Ireland?

Yes. Northern Ireland sets its own limits, and nidirect currently lists a weekly cap of £783 and a maximum statutory payment of £23,490. The age bands and the 20-year limit work the same way as in Great Britain.

Citizens Advice gives the same £751 weekly cap in its advice for Scotland and for Wales, and notes that the amount goes up on 6 April each year. Disputes in Northern Ireland go to an Industrial Tribunal rather than an employment tribunal.

Is statutory redundancy pay taxed?

Up to £30,000 of redundancy pay is tax free, according to both Acas and nidirect. Because the statutory maximum is £22,530 in Great Britain, a purely statutory payment sits below that threshold.

Enhanced packages are different. If your employer tops up the statutory amount, the combined total can pass £30,000, and other items such as pay in lieu of notice may be treated separately. HM Revenue and Customs (HMRC) guidance covers how those elements are taxed.

When should you be paid, and what if you are not?

Payment is due when your job ends or with your final pay, unless you and your employer agree a different date in writing. They must also give you a written breakdown showing how the figure was calculated.

If the money does not arrive, Acas recommends these steps in order:

Write to your employer as soon as possible, setting out what you are owed.
Attach evidence such as payslips, a letter showing your start date or your own breakdown.
Ask for payment by a specific date, allowing reasonable time.
If you still are not paid, make a tribunal claim within 6 months minus 1 day of your job ending (3 months minus 1 day for contractual redundancy pay).
If your employer is insolvent, apply to the government's Redundancy Payments Service instead.

Common mistakes to avoid

Check your dates and your pay figure before you sign anything.

Counting part years. Only full years of service count towards the total.
Ignoring notice. Acas explains that when you get payment in lieu of notice, your statutory notice period is added to your service, which can tip you into an extra full year.
Using leave pay. If you were on family-related leave, the calculation should use your normal contractual pay.
Assuming you are excluded. Being made redundant on a fixed-term contract of two years or more can still qualify, according to nidirect.
Missing the deadline. The 6-month window for claiming statutory redundancy pay runs from the date your job ends.

What this means for you

If redundancies are being discussed at your workplace, the statutory redundancy pay 2026 rules give you a floor, not a ceiling. Check your contract for enhanced terms, confirm your gross weekly pay and start date, and run the numbers before any consultation meeting. You can also contact the Acas helpline.

Related reading on Jobsiz: Royal Mail Job Cuts 2026, Employment Tribunal Time Limits: The New 6-Month Rule Explained and Statutory Sick Pay 2026.

Frequently asked questions

How much redundancy pay will I get for 5 years' service?

It depends on your age during those years. If all five were worked aged 22 to 40, you get five weeks' pay; at £500 a week that is £2,500. Years worked aged 41 or over earn one and a half weeks each, and years aged 21 or under earn half a week.

What is the redundancy pay cap for 2026?

For redundancies on or after 6 April 2026 in England, Scotland and Wales, weekly pay is capped at £751 and the total is capped at £22,530. In Northern Ireland, nidirect lists £783 a week and a £23,490 maximum.

Is redundancy pay tax free in the UK?

Up to £30,000 of redundancy pay is tax free. A statutory-only payment falls below that, but an enhanced package or extra items such as pay in lieu of notice may be taxed.

Do you get redundancy pay on a zero-hours contract?

Usually not, because Acas says people on zero-hours contracts are unlikely to have employee status. Statutory redundancy pay requires employee status and at least 2 years' continuous service, so check your status first.

Do I get redundancy pay if I have worked less than 2 years?

No statutory payment is due with under 2 years' continuous service. Your contract may still offer contractual redundancy pay, so read it carefully.

When will I receive my redundancy pay?

Payment is normally due on the day your job finishes or with your last pay packet. A different payment date is possible if both sides agree it, ideally confirmed by email or letter.

What happens if my employer goes bust?

If your employer is insolvent, you can apply for redundancy pay through the government's Redundancy Payments Service. If it has stopped trading but is not formally insolvent, a tribunal claim may be an option.

Sources

This article was compiled by Jobsiz from the sources listed above, with AI-assisted writing and automated fact-checking. Published 11 October 2026. We update stories when new verified information becomes available.

Statutory Redundancy Pay 2026: How Much You Get in the UK