If you’re searching for UK statutory redundancy rates, you’re likely trying to answer one key question:

👉 “How much redundancy pay am I entitled to — or how much do I need to pay?”

From April 2026, statutory redundancy pay has increased, meaning both employees and employers need to understand the updated rules, caps, and calculations.

This guide covers:

• ✅ The latest UK statutory redundancy rates (2026)
• ✅ How redundancy pay is calculated
• ✅ Real examples
• ✅ Employer compliance considerations
• ✅ Tools to calculate redundancy accurately

---

📊 UK Statutory Redundancy Rates 2026

From 6 April 2026, the official statutory redundancy figures are:

• Maximum weekly pay: £719
• Maximum statutory redundancy payment: £21,570
• Minimum service required: 2 years

These apply where the redundancy dismissal date falls on or after 6 April 2026.

---

👉 Quickly Calculate Your Redundancy Pay

Whether you’re an employee or employer, manual calculations can be time-consuming and error-prone.

👉 Calculate your redundancy pay instantly

This tool gives you:

• A personalised estimate
• A clear breakdown of entitlement
• Fast, accurate results

---

🧮 How Statutory Redundancy Pay Is Calculated

Redundancy pay is based on three key factors:

• Age
• Length of service (max 20 years)
• Weekly pay (capped at £719)

---

🔢 Redundancy Pay Formula (UK)

You are entitled to:

• 0.5 week’s pay for each year under age 22
• 1 week’s pay for each year aged 22–40
• 1.5 week’s pay for each year aged 41+

---

📌 Key Rules to Know

• Maximum 20 years’ service counted
• Weekly pay capped at £719
• Only full years of service count

---

📈 Example Redundancy Calculations (2026)

Example 1: Age 45, 10 years’ service

• 10 × 1.5 weeks = 15 weeks
• 15 × £719 = £10,785

---

Example 2: Age 30, 5 years’ service

• 5 × 1 week = 5 weeks
• 5 × £600 = £3,000

---

Example 3: Mixed age bands

• 5 years under 22 → 2.5 weeks
• 10 years aged 22–40 → 10 weeks
• 5 years aged 41+ → 7.5 weeks

Total = 20 weeks (maximum service reached)

---

👉 Check your exact redundancy pay here

---

⚖️ Who Qualifies for Statutory Redundancy Pay?

You qualify if:

• You are an employee (not self-employed)
• You have 2+ years’ continuous service
• You are being made genuinely redundant

---

⚠️ Common Redundancy Pay Mistakes

❌ Ignoring the weekly pay cap

Even if earning more, calculations are capped at £719.

❌ Miscalculating age bands

Each year must be calculated based on your age at that time.

❌ Counting more than 20 years

Maximum qualifying service = 20 years.

❌ Forgetting additional payments

Redundancy pay is separate from:

• Notice pay
• Holiday pay
• Enhanced redundancy schemes

👉 Check your exact redundancy pay here

---

💼 Employer Guide: Calculating Redundancy for Multiple Employees

If you’re an employer, HR professional, or business owner, calculating redundancy for one employee is manageable — but multiple redundancies quickly become complex.

You need to account for:

• Different ages across employees
• Varying lengths of service
• Weekly pay caps
• Legal compliance risks
• Budget forecasting

Manual spreadsheets can easily lead to errors — especially in larger redundancy exercises.

---

👉 Bulk Redundancy Calculations (Recommended)

👉 Use the redundancy calculator for employers

This tool is designed specifically for:

• Employers managing multiple redundancies
• HR teams running restructures or consultations
• SMEs needing fast, compliant calculations

It helps you:

• Run calculations across multiple employees at once
• Compare redundancy scenarios
• Avoid underpayment (legal risk)
• Avoid overpayment (cost control)
• Ensure compliance with UK statutory redundancy rules

---

📊 Statutory vs Enhanced Redundancy Pay

Many employers offer enhanced redundancy packages, which may include:

• Higher weekly pay (uncapped)
• Additional weeks per year of service
• Lump sum payments

👉 Always check:

• Employment contracts
• Company redundancy policies

---

💰 Is Redundancy Pay Taxable?

• First £30,000 is tax-free
• Amount above £30,000 is taxable

This makes redundancy pay relatively tax-efficient compared to salary.

---

📉 Why Redundancy Rates Increase Each Year

The UK government updates statutory redundancy rates annually to reflect:

• Inflation
• Wage growth
• Economic conditions

This ensures redundancy payments remain fair and relevant.

---

🚀 Final Thoughts: UK Statutory Redundancy Rates

The UK statutory redundancy rates for 2026 provide a clear framework, but the actual payout depends on:

• Age
• Length of service
• Weekly pay

---

🔑 Key Takeaways

• Weekly pay capped at £719
• Max redundancy pay £21,570
• Based on age + service + pay

---

👉 Next Steps (Best Action)

For Employees

👉 Calculate your redundancy pay instantly

---

For Employers

👉 Calculate redundancy for multiple employees