Question 1

How is UK statutory redundancy pay calculated?

Accepted Answer

Statutory redundancy pay is based on your age, length of service (up to 20 years) and weekly pay (capped at £700 for 2025). You get 0.5 week's pay for each full year under 22, 1 week's pay for each full year aged 22-40, and 1.5 weeks' pay for each full year aged 41 or over.

Question 2

What is the maximum statutory redundancy pay in 2025?

Accepted Answer

The maximum statutory redundancy pay in 2025 is £21,000. This is based on 20 years' service at the maximum weekly pay cap of £700, with the highest age multiplier of 1.5 weeks per year.

Question 3

Is redundancy pay taxable in the UK?

Accepted Answer

Statutory redundancy pay is tax-free up to £30,000. Any amount above this threshold may be subject to income tax. Your employer should handle the tax deduction through PAYE.

Question 4

Do I qualify for statutory redundancy pay?

Accepted Answer

You qualify if you've been continuously employed by your employer for 2 or more years and you're being made redundant. This applies to employees, not contractors or self-employed workers.

Question 5

Can my employer pay more than the statutory minimum?

Accepted Answer

Yes. Many employers offer enhanced redundancy packages that exceed the statutory minimum. Check your employment contract or company policy. The statutory amount is the legal minimum your employer must pay.

UK Statutory Redundancy Pay Calculator 2026

Frequently asked questions

UK Statutory Redundancy Pay Calculator 2026

Frequently asked questions