Redundancy Pay Rates 2025/26
Below you will find the current statutory redundancy pay rates for the 2025/26 tax year, along with historical rates and explanations of how each figure is used in the redundancy pay calculation.
Current Statutory Redundancy Rates (2025/26)
These are the key figures used to calculate statutory redundancy pay in the UK for the 2025/26 tax year. The rates apply to anyone whose redundancy date falls within this period.
| Rate | Current Value | Explanation |
|---|---|---|
| Weekly pay cap | £719 | The maximum weekly pay figure used in the calculation in England, Scotland and Wales, regardless of your actual earnings. In Northern Ireland the cap is £749. If you earn less than the applicable cap, your actual weekly pay is used instead. |
| Under 22 multiplier | 0.5 weeks' pay per year | For each complete year of service during which you were under the age of 22, you receive half a week's pay. At the current cap, this equals £359 per year (£374 in NI). |
| Aged 22–40 multiplier | 1.0 week's pay per year | For each complete year of service during which you were aged 22 to 40 (inclusive), you receive one week's pay. At the current cap, this equals £719 per year (£749 in NI). |
| Aged 41 and over multiplier | 1.5 weeks' pay per year | For each complete year of service during which you were 41 or older, you receive one and a half weeks' pay. At the current cap, this equals £1078 per year (£1123 in NI). |
| Maximum service years | 20 years | Only the most recent 20 complete years of continuous service are counted. Any service beyond 20 years is disregarded. |
| Maximum statutory redundancy pay | £21,570 | The highest possible statutory payment in England, Scotland and Wales, achieved with 20 years of service entirely within the 41+ age band at the maximum weekly cap (£719 × 1.5 × 20). See the Northern Ireland rows below for NI figures. |
| Weekly pay cap (Northern Ireland) | £749 | Northern Ireland sets its own weekly pay cap, which is currently higher than the rest of the UK. If you work in NI, your redundancy pay is calculated using £749 rather than £719. Use the NI calculator. |
| Maximum statutory redundancy (Northern Ireland) | £22,470 | The higher weekly pay cap in Northern Ireland means the maximum possible statutory payment is £22,470 (compared to £21,570 in England, Scotland and Wales). |
| Tax-free threshold | £30,000 | The first £30,000 of any redundancy payment (statutory or enhanced) is free from income tax and National Insurance. |
| Minimum service to qualify | 2 years | You must have at least 2 complete years of continuous service with your employer to be eligible for statutory redundancy pay. |
Statutory Notice Periods
In addition to redundancy pay, you are also entitled to a statutory minimum notice period (or pay in lieu of notice). The notice period depends on how long you have worked for your employer:
| Length of Service | Minimum Notice Period |
|---|---|
| 1 month to 2 years | 1 week |
| 2 years | 2 weeks |
| 3 years | 3 weeks |
| 4 years | 4 weeks |
| 5 years | 5 weeks |
| 6 years | 6 weeks |
| 7 years | 7 weeks |
| 8 years | 8 weeks |
| 9 years | 9 weeks |
| 10 years | 10 weeks |
| 11 years | 11 weeks |
| 12 years or more | 12 weeks (maximum) |
Your employment contract may specify a longer notice period than the statutory minimum. If so, you are entitled to whichever is longer. See our notice periods guide for more details, or use the notice period calculator to work out your entitlement.
Historical Redundancy Pay Rates
The statutory weekly pay cap is reviewed and typically increased each April by the UK Government under the Employment Rights (Increase of Limits) Order. Below is a comparison of recent rates:
| Tax Year | Weekly Pay Cap | Maximum Statutory Redundancy Pay | Change from Previous Year |
|---|---|---|---|
| 2024/25 (current) | £719 | £21,570 | +£76/week (+11.8%) |
| 2023/24 | £643 | £19,290 | +£72/week (+12.6%) |
| 2022/23 | £571 | £17,130 | +£27/week (+5.0%) |
| 2021/22 | £544 | £16,320 | +£16/week (+3.0%) |
| 2020/21 | £538 | £16,140 | +£13/week (+2.5%) |
The sharp increases in 2023/24 and 2024/25 reflect higher-than-usual inflation adjustments. Historically, the cap has risen more gradually at around 2–4% per year.
When Do Rates Change?
Redundancy pay rates are updated annually, usually taking effect from 6 April each year. The new rates apply to anyone whose redundancy date (the date employment ends) falls on or after that date.
The Government announces the new limits a few weeks before April through a Statutory Instrument called the Employment Rights (Increase of Limits) Order. The increase is generally linked to the Retail Prices Index (RPI) from the previous September.
If you are being made redundant close to April, the date your employment formally ends is what determines which rates apply — not the date you were given notice or the date redundancy was announced.
Understanding the Calculation
Statutory redundancy pay is calculated by working backwards from your redundancy date through each complete year of service (up to a maximum of 20 years). For each year, the multiplier is determined by your age during that year:
- Under 22: half a week's pay (£359 at the current cap, or £374 in NI)
- 22 to 40: one week's pay (£719 at the current cap, or £749 in NI)
- 41 and over: one and a half weeks' pay (£1078 at the current cap, or £1123 in NI)
The weekly pay figure used is the lower of your actual gross weekly pay and the statutory cap (£719, or £749 in Northern Ireland). If you earn more than the applicable cap, only the cap figure is used in the calculation.
For a detailed worked example, see our guide on how redundancy pay is calculated, or use the free redundancy pay calculator to get an instant personalised result.
Frequently Asked Questions
What is the current weekly pay cap for redundancy?
The weekly pay cap for statutory redundancy in 2025/26 is £719 in England, Scotland and Wales, and £749 in Northern Ireland. If you earn more than the applicable cap, your redundancy calculation is based on the cap figure. If you earn less, your actual weekly pay is used instead.
What is the maximum statutory redundancy pay?
The maximum statutory redundancy pay for 2025/26 is £21,570 in England, Scotland and Wales (£22,470 in Northern Ireland). This is based on 20 years of service at 1.5 weeks' pay per year (the over-41 rate) at the applicable weekly cap. In practice, few people reach this maximum because it requires 20 years of qualifying service entirely within the 41+ age band.
When do UK redundancy pay rates change?
UK statutory redundancy pay rates are updated each April, typically taking effect from 6 April. The weekly pay cap is reviewed annually and usually increases in line with inflation. The Government publishes the new figures through the Employment Rights (Increase of Limits) Order a few weeks before the new rates take effect.
Is statutory redundancy pay taxed?
Statutory redundancy pay is tax-free up to £30,000. Any amount above this threshold (which can occur with enhanced or contractual packages) may be subject to income tax and National Insurance contributions. Since the current maximum statutory payment is £21,570, statutory redundancy pay alone will always fall below the tax-free limit. Read more in our redundancy tax guide.
How do the age band multipliers work?
For each complete year of service, you receive a different amount depending on your age during that year: half a week's pay if you were under 22, one week's pay if you were aged 22 to 40, or one and a half weeks' pay if you were 41 or over. The calculation works backwards from your redundancy date, applying the correct multiplier for each year based on how old you were at the time. This means a single person's calculation often involves two or even three different multipliers.
Calculate Your Redundancy Pay
Use our free redundancy pay calculator to get a personalised calculation based on your age, salary and length of service. The calculator applies all current 2025/26 rates automatically.
You can also view the redundancy pay lookup table to see amounts at a glance for different ages and years of service.