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Statutory Redundancy Pay Rules 2026/27
| Age Band | Weeks Per Year of Service |
|---|---|
| Under 22 | 0.5 weeks |
| 22–40 | 1 week |
| 41 and over | 1.5 weeks |
Weekly pay is capped at £751 (Great Britain) or £783 (Northern Ireland) regardless of actual earnings, and only the most recent 20 years of service count. Maximum statutory redundancy pay is £22,530 (GB).
You need at least 2 years' continuous service to qualify for statutory redundancy pay. Some employers offer enhanced (contractual) redundancy pay above the statutory minimum.
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The figure above is an estimate of what you're entitled to or what it costs you — deciding what to actually do with it (invest, overpay debt, top up a pension) is a bigger decision worth getting right.
- Received a redundancy payout: understand tax-free thresholds and how to make a lump sum work for you long-term.
- Planning parental leave: budget around the drop from full pay to statutory rate, and check what protections apply.
- Deciding whether to overpay a student loan: for many people investing the surplus outperforms early repayment — but it depends on your plan type and income trajectory.
- Reviewing pension contributions: small percentage changes compound significantly over a career.
An FCA-regulated independent financial adviser can model your specific numbers — free directories like Unbiased.co.uk match you with a local IFA.
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Methodology & Sources
Figures are public HMRC/gov.scot/DWP rates. For your exact position, use gov.uk/estimate-income-tax.
Not Tax or Legal Advice
Information only. Consult the Chartered Institute of Taxation or an adviser via the FCA Register.
Open Source
Formulas are public. Inspect on GitHub.