How Is Redundancy Pay Calculated? (UK 2026/27 Guide)

Statutory redundancy pay is calculated using a formula based on three factors: your age, your length of continuous service (capped at 20 years), and your weekly gross pay (capped at £751 for 2026/27).

The age-band multipliers

• Under 22: half a week's pay per year of service
• 22 to 40: one week's pay per year
• 41 and over: one and a half weeks' pay per year

The multipliers apply to the age you were during each year of service, not just your current age. So if you worked from age 40 to 43, one year gets the 22–40 multiplier and two years get the 41+ multiplier.

The weekly pay cap

For redundancies on or after 6 April 2026, the weekly pay cap is £751. Even if you earn £2,000 per week, only £751 counts. The cap is reviewed each April.

Maximum statutory redundancy pay

The maximum possible payout is 30 weeks × £751 = £22,530. This applies to someone aged 61+ with 20 years' service earning above the cap.

Enhanced redundancy

Your employer can offer more than the statutory minimum — many use a multiplier of 1.5× or 2× statutory. Check your contract or staff handbook.

Use our redundancy pay calculator to get your exact figure instantly.