How statutory redundancy pay is worked out

If you're made redundant after at least 2 full years of continuous service, you're entitled to statutory redundancy pay. For each full year of service (counting back from the most recent, up to a maximum of 20 years), you get a number of week's pay based on your age during that year: half a week's pay for each year you were under 22, one week's pay for each year you were 22 to 40, and one and a half week's pay for each year you were 41 or over. A week's pay is capped at £751 (2026/27), even if you earn more — so the maximum statutory redundancy payment is 20 × 1.5 × £751 = £22,530. Many employers offer a more generous contractual redundancy scheme on top of the statutory minimum.