Redundancy Pay Calculator Wales

How Redundancy Pay Works in Wales

Statutory redundancy pay in Wales follows the Employment Rights Act 1996, the same legislation that covers the whole of Great Britain (England, Scotland and Wales). The rates, formula and qualifying criteria are identical across all three nations.

The key figures for the 2025/26 tax year are:

• Weekly pay cap: £719
• Maximum statutory redundancy pay: £21,570
• Minimum service to qualify: 2 years
• Maximum years counted: 20

The formula uses three age-based multipliers: half a week's pay per year of service if you were under 22, one week's pay if you were 22–40, and one and a half weeks' pay if you were 41 or over.

Frequently Asked Questions

Is redundancy pay different in Wales compared to the rest of the UK?

Statutory redundancy pay in Wales uses the same rates and formula as the rest of Great Britain (England, Scotland and Wales). The only part of the UK with different rates is Northern Ireland, which has a higher weekly pay cap of £749.

Does Scottish/Welsh devolution affect redundancy pay?

No. Employment law remains reserved to the UK Parliament for Great Britain. Scottish and Welsh governments do not set separate redundancy rates. The same Employment Rights Act 1996 applies throughout England, Scotland and Wales.

How often do the rates change?

Statutory redundancy rates are reviewed annually, typically taking effect from 6 April each year. The weekly pay cap usually increases in line with inflation.