How Much Redundancy Pay Am I Entitled To? UK Rules Explained
Find out how much redundancy pay you may be entitled to in the UK, who qualifies, and how age, service, and the weekly cap affect the result.
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If you are asking how much redundancy pay am I entitled to, you are really asking two questions at once. First, do you qualify at all? Second, if you do, what number comes out once age, service, and weekly pay are applied to the statutory formula?
The good news is that the rules are structured. The bad news is that small details such as the correct start date or weekly pay figure can change the answer significantly.
Who is usually entitled to statutory redundancy pay?
In most cases, you need:
- employee status
- at least 2 years of continuous service
- a genuine redundancy situation
GOV.UK explains the core entitlement rules on its redundancy pay page.
How statutory redundancy pay is calculated
The statutory formula uses your age during each full year of service:
| Age band | Entitlement for each full year |
|---|---|
| Under 22 | 0.5 week’s pay |
| 22 to 40 | 1 week’s pay |
| 41 and over | 1.5 weeks’ pay |
Two more limits apply:
- only up to 20 years of service count
- weekly pay is capped by law
For dismissals on or after 6 April 2026, the weekly cap shown on GOV.UK is GBP751, and the maximum statutory redundancy payment is GBP22,530.
Why your entitlement might be lower or higher than expected
People often expect redundancy pay to equal several months of actual salary. Statutory redundancy does not work that way. It is a legally capped minimum. The final figure may be lower than expected because:
- service under 2 years does not usually qualify
- part years do not count in the statutory minimum
- weekly pay above the cap is ignored for the cap calculation
- only the statutory minimum is being calculated, not an enhanced package
It may be higher than expected where:
- you are in the 41-and-over age band for many years of service
- your contract includes enhanced redundancy terms
- your employer offers an ex gratia or settlement payment on top
Worked example
Suppose you are 43, have 7 full years of service, and your weekly pay is above the statutory cap. If all 7 years count in the 41-and-over band:
7 x 1.5 = 10.5 weeks
10.5 x GBP751 = GBP7,885.50
That would be the statutory minimum based on the cap, before considering notice pay, holiday pay, or any enhanced offer.
Use the Redundancy Pay Calculator to estimate your own figure with your actual dates and pay.
What redundancy pay does not include
This is one of the biggest sources of confusion. Statutory redundancy pay is not the same as:
- notice pay
- untaken holiday pay
- unpaid bonus or commission
- settlement agreement compensation
Those payments may all matter when employment ends, but they should be broken out separately.
What to check before accepting your employer’s figure
- the employment start date used
- whether only full years were counted
- which age band was used for each year
- the weekly pay figure used
- whether the employer has a better-than-statutory redundancy policy
Ask for the breakdown in writing if needed. That makes it much easier to challenge a mistake calmly and specifically.
Frequently Asked Questions
How much redundancy pay am I entitled to after 2 years?
That depends on your age and weekly pay. Two years is the usual minimum service threshold for statutory redundancy pay, but the amount still depends on the statutory age bands and weekly pay cap.
How much redundancy pay am I entitled to if I earn more than the cap?
Your actual higher pay does not increase the statutory calculation above the legal weekly cap. For dismissals on or after 6 April 2026, GOV.UK states the cap is GBP751 a week.
Does redundancy pay include notice pay?
No. Statutory redundancy pay is separate from notice pay. If your job is ending, you may be owed both, but they should be shown separately.
Can my contract give me more redundancy pay than the statutory minimum?
Yes. Some employers offer enhanced redundancy terms through contracts, policies, or negotiated exits. The statutory figure is only the legal floor.
The Bottom Line
If you are asking how much redundancy pay am I entitled to, start with the statutory rules on age, service, and the weekly cap, then check whether your contract offers more. The biggest mistakes usually come from wrong service dates or confusion between redundancy pay and the rest of the exit package. Use the Redundancy Pay Calculator to build a quick, structured estimate.
Step-by-step checklist
Check that you qualify
In most cases you need to be an employee with at least two years of continuous service.
Count the full years that matter
Statutory redundancy pay uses complete years of service and different age bands for different years.
Apply the weekly pay cap
Even if actual pay is higher, the legal weekly cap limits the figure used for the statutory minimum.