How does age affect redundancy pay in the UK?

Your age determines the multiplier applied to each year of service when calculating statutory redundancy pay. Workers under 22 receive half a week's pay per year, those aged 22 to 40 receive one week's pay per year, and those aged 41 and over receive one and a half weeks' pay per year. This means older workers accumulate redundancy entitlement at a higher rate.

Why do older workers get more redundancy pay?

The higher multiplier for older workers reflects the view that they may face greater difficulty finding new employment due to age-related barriers in the job market. This age-based differentiation is specifically authorised by the Employment Rights Act 1996 and is a lawful exception to age discrimination rules under the Equality Act 2010.

Does the age multiplier apply to each year separately?

Yes. The multiplier is applied on a year-by-year basis according to your age during each specific year of service. If you were employed from age 38 to 45, the years when you were 38 to 40 would use the 1.0 multiplier, and the years from 41 to 45 would use the 1.5 multiplier.

What age do you use for the redundancy calculation?

The calculation uses your age during each individual year of service, working backwards from the date your employment ends (the relevant date). Your age on the relevant date determines the multiplier for your most recent year of service, and your age in each preceding year determines the multiplier for that year.

Is the age-based redundancy formula age discrimination?

No. Although the formula treats workers differently based on age, this is lawful because it is specifically authorised by statute. The Employment Rights Act 1996 sets out the age bands, and the Equality Act 2010 provides an exception for statutory redundancy payments. The rationale is that older workers face greater challenges re-entering the job market.

How Age Affects Your Redundancy Pay

Your age is one of the three key factors that determine how much statutory redundancy pay you receive. The UK formula uses three age bands, each with a different multiplier, applied on a year-by-year basis. This means that older workers accumulate entitlement at a higher rate. This guide explains the age bands in detail, shows how they work in practice, and looks at why the law treats different ages differently.

The three age bands explained

When calculating statutory redundancy pay, each complete year of your employment is assigned a multiplier based on your age during that year. There are three bands:

Age band	Multiplier	What it means
Under 22	0.5	You receive half a week's pay for each year of service completed while under 22
22 to 40	1.0	You receive one full week's pay for each year of service completed while aged 22 to 40
41 and over	1.5	You receive one and a half weeks' pay for each year of service completed while aged 41 or older

These multipliers are applied to your weekly pay (capped at £719 for 2025/26, or £749 in Northern Ireland) for each qualifying year. Only the most recent 20 years of continuous employment are counted.

Year-by-year, not a single band

A common misunderstanding is that your current age determines the multiplier for all your years of service. This is not the case. The multiplier is applied separately to each individual year based on your age during that year.

For example, if you started work at age 37 and are being made redundant at age 47, the calculation would apply different multipliers across your service:

Years at age 37, 38, 39 and 40: each at the 1.0 multiplier (4 years)
Years at age 41, 42, 43, 44, 45, 46 and 47: each at the 1.5 multiplier (6 years, assuming the final year is complete)

This year-by-year approach means that the calculation is always worked backwards from your leaving date. The most recent years — when you are typically oldest — attract the highest multiplier. For a full explanation of the mechanics, see our step-by-step calculation guide.

Why do older workers receive more?

The higher multiplier for older workers is rooted in the recognition that age can be a significant barrier to re-employment. Research consistently shows that older workers:

Take longer on average to find new employment after redundancy
May face conscious or unconscious age bias in recruitment processes
Are more likely to have higher financial commitments (mortgages, dependants, caring responsibilities)
May have skills that are more closely tied to a specific industry or role, making transition harder
Have fewer working years remaining to rebuild savings and pension contributions

The age-based differentiation is specifically authorised by the Employment Rights Act 1996 and is a lawful exception to the age discrimination provisions of the Equality Act 2010. Parliament has decided that the social policy justification for paying older workers more outweighs the principle of equal treatment by age.

Worked examples at different ages

To illustrate the impact of age on redundancy pay, here are three examples. Each employee has exactly 10 years of service and earns £35,000 per year (£673.08 per week, below both the £719 and £749 NI caps).

Example 1: Made redundant at age 28

This employee started at age 18. Their 10 years break down as:

Ages 18–21: 4 years at 0.5 multiplier = 2.0 weeks' pay
Ages 22–27: 6 years at 1.0 multiplier = 6.0 weeks' pay

Total: 8.0 weeks' pay = 8.0 × £673.08 = £5,384.64

Example 2: Made redundant at age 38

This employee started at age 28. All 10 years fall within the 22–40 band:

Ages 28–37: 10 years at 1.0 multiplier = 10.0 weeks' pay

Total: 10.0 weeks' pay = 10.0 × £673.08 = £6,730.80

Example 3: Made redundant at age 50

This employee started at age 40. Their 10 years break down as:

Age 40: 1 year at 1.0 multiplier = 1.0 week's pay
Ages 41–49: 9 years at 1.5 multiplier = 13.5 weeks' pay

Total: 14.5 weeks' pay = 14.5 × £673.08 = £9,759.66

The 50-year-old receives £4,375.02 more than the 28-year-old despite having identical length of service and salary. This illustrates the significant impact the age bands have on the final figure.

Multiplier summary table

This table shows the total number of weeks' pay you would receive based on different combinations of age at redundancy and years of service, assuming all service falls within a single age band (for simplicity):

Years of service	Under 22 (0.5×)	22 to 40 (1.0×)	41+ (1.5×)
2	1.0 weeks	2.0 weeks	3.0 weeks
5	2.5 weeks	5.0 weeks	7.5 weeks
10	5.0 weeks	10.0 weeks	15.0 weeks
15	7.5 weeks	15.0 weeks	22.5 weeks
20 (maximum)	10.0 weeks	20.0 weeks	30.0 weeks

In practice, most employees will span more than one age band across their career, so their actual entitlement will be a blend of multipliers. For a precise figure, use our redundancy pay calculator.

Special considerations for younger workers

Workers under 22 face a double disadvantage when it comes to redundancy pay. Not only is their multiplier the lowest (0.5 weeks per year), but they also have fewer potential years of service. Since you must have at least 2 years' continuous service to qualify at all, the youngest an employee can be and still receive statutory redundancy pay is typically 18 (having started work at 16).

The maximum a worker could accumulate entirely within the under-22 band is about 3 years (ages 18 to 21, assuming they started at 16 and reached 2 years' service by age 18), which would yield just 1.5 weeks' pay. In reality, very few young employees will have long enough service to receive a significant statutory payment.

Approaching a birthday or age band boundary

If you are close to turning 22 or 41 when redundancy is being discussed, the timing could affect your payment. Crossing into a higher age band means the most recent year of service attracts a higher multiplier. While you should not delay or obstruct a redundancy process, it is worth being aware of these thresholds, particularly if consultation timelines are flexible.

The relevant date for the calculation is normally the date your employment ends (or would end if full notice were given). If there is any flexibility in the timing, even a few days can make a difference if you are right on the boundary.

Age bands and enhanced schemes

Many employers who offer enhanced redundancy packages use their own age-related multipliers or dispense with age bands entirely. For example, some enhanced schemes offer a flat 2 weeks' pay per year of service regardless of age, while others increase the multiplier for all ages.

Enhanced schemes that use different age-based rates must still comply with the Equality Act 2010. However, schemes that mirror the statutory age band structure (even with higher multipliers) are generally considered lawful, as they are following the approach authorised by Parliament.

For information about the overall limits on statutory redundancy pay, see our guide to maximum redundancy pay in the UK.

Find out your exact redundancy pay

Our calculator automatically applies the correct age band multiplier to each year of your service. Enter your details for an instant, personalised breakdown.

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