Who qualifies
You need to be an employee with at least two years' continuous service with the employer. Workers who are not employees, such as some agency and self-employed people, do not qualify.
The formula
For each full year of service you get half a week's pay for years worked while under 22, one week's pay for years worked from 22 to 40, and one and a half weeks' pay for years worked at 41 or over. Only the most recent 20 years count.
The weekly pay cap
Weekly pay is capped at £751 from 6th April 2026, so the most anyone can receive is 30 weeks at £751, which is £22,530. If you earn less than the cap, your actual average weekly pay is used.
A worked example
Someone aged 46 with 12 full years of service who earns £820 a week has five years worked at 41 or over and seven years worked between 22 and 40. That is 7.5 weeks plus 7 weeks, or 14.5 weeks. At the capped £751 a week, statutory redundancy pay is £10,889.50.
Tax and time limits
The first £30,000 of a genuine redundancy payment is usually free of income tax. If your employer does not pay, you normally have six months from the date your employment ends to take action.