Redundancy support
How statutory redundancy pay works in the UK
5 min read
Statutory redundancy pay is the minimum your employer must pay if you've worked for them for two years or more. Many employers offer more than the statutory amount.
Who qualifies
- You're an employee (not a worker or contractor).
- You've worked continuously for the same employer for 2+ years.
- Your role is genuinely redundant.
How statutory redundancy is calculated
- Half a week's pay for each full year you were under 22.
- One week's pay for each full year you were 22 to 40.
- One and a half week's pay for each full year you were 41+.
- Capped at 20 years' service and at the statutory weekly pay limit (£700/week from April 2024 — check GOV.UK for the current figure).
Tax on redundancy pay
Statutory redundancy pay is tax-free. Contractual redundancy pay is tax-free up to £30,000 in total. Pay in lieu of notice and holiday pay are taxed as normal earnings.
See what you may be entitled to
The free check gives an indicative view in about five minutes. No login.
Frequently asked questions
Sources
See our methodology for how we use these sources.
Related reading
Redundancy support hub
Calm step-by-step guidance for the weeks after redundancy.
Notice pay and PILON after redundancy
How notice periods work in the UK, what payment in lieu of notice (PILON) means for tax, and how it affects Universal Credit.
How savings and redundancy pay affect Universal Credit
The £6,000 and £16,000 thresholds explained, plus how deliberate spending (deprivation of capital) is treated.
Does redundancy pay affect Universal Credit?
How statutory redundancy pay, contractual top-ups and payment in lieu of notice are treated when you claim Universal Credit in the UK.