Guide

Statutory Redundancy Pay Guide

This page is designed to support a calculator or comparison page, not replace personalised advice on disputed facts.

A practical guide to the main statutory redundancy pay rules: who usually qualifies, how the core formula works, what caps apply, and where common misunderstandings start.

Reviewed status

Last reviewed: 28 March 2026

Purpose: support page for the redundancy calculator and related exit-rights pages.

Main statutory rule points

  • You normally need at least 2 years with your employer to qualify.
  • The formula uses age band, full years of service, and weekly pay.
  • Service is capped at 20 years for statutory redundancy pay.
  • For dismissals on or after 6 April 2025, weekly pay is capped at £719 and the statutory maximum is £21,570.
Qualification

Who usually qualifies

GOV.UK says a worker only qualifies for statutory redundancy pay if they have worked for their employer for at least 2 years. That is why the calculator treats under-2-years service as the key early screening point.

Formula

How the core statutory calculation works

The statutory formula uses age bands and full years of service: 0.5 week’s pay for each full year under age 22, 1 week’s pay for each full year aged 22 to 40, and 1.5 weeks’ pay for each full year aged 41 and over.

Caps

The statutory limits matter

GOV.UK says only the last 20 years of service count for statutory redundancy pay. For dismissals on or after 6 April 2025, weekly pay is capped at £719 and the maximum statutory redundancy pay is £21,570.

Average weekly pay

How weekly pay is framed

GOV.UK says weekly pay is the average earned per week over the 12 weeks before the day the worker got redundancy notice. That is why the calculator asks for gross average weekly pay rather than salary alone.

Important: Statutory redundancy pay is not always the full story. Contracts can offer enhanced redundancy packages, and some workers may be affected by exclusions, alternative work issues, or other facts.
Official sources used

Source and review block

GOV.UK: Redundancy pay

Used for qualification, age bands, service cap, weekly pay cap, and statutory maximum redundancy payment.

Open official source

GOV.UK: Calculate your statutory redundancy pay

Used to support the core input logic of age, weekly pay, and years in the job.

Open official source

Common questions

Quick FAQs

Do I usually need 2 years with my employer?

Yes. GOV.UK says you only qualify for statutory redundancy pay if you have worked for your employer for at least 2 years.

Can my contract give me more than the statutory amount?

Yes. The statutory amount is the legal minimum route. Some employers offer enhanced contractual redundancy terms.