How much redundancy pay am I entitled to?

Statutory redundancy pay formula: weeks' pay × number of years service. The number of weeks' pay depends on your age.

• Under 22: 0.5 week's pay per year of service (max 2 weeks total)
• Age 22–40: 1 week's pay per year of service
• Age 41+: 1.5 weeks' pay per year of service (max 20 weeks total)

Weekly pay capped at £645 (April 2026).

Age 25, 6 years service, earns £500/week:

1 week × 6 years = 6 weeks' pay. 6 × £500 = £3,000

Age 45, 10 years service, earns £700/week (capped at £645):

1.5 weeks × 10 years = 15 weeks' pay. 15 × £645 = £9,675

Age 19, 1 year service, earns £300/week:

0.5 weeks × 1 year = 0.5 weeks' pay. 0.5 × £300 = £150

You only get redundancy pay if you've worked there for at least 2 years (changing to 6 months in January 2027). If you haven't reached 2 years, you don't get statutory redundancy pay.

For salaried employees, weekly pay = annual salary ÷ 52. For hourly workers, it's your hourly rate × hours per week. For those with variable hours, it's calculated differently—your employer should work it out.

The cap (£645 in April 2026) applies regardless of what you actually earn. If you earn £1,000/week, you're still capped at £645 for redundancy purposes.