UK Redundancy Pay: Your Complete Guide

What is Redundancy Pay?

Redundancy pay is a payment given to employees when their role is made redundant. It's a statutory entitlement for eligible workers in the UK.

Who is Eligible?

To qualify for statutory redundancy pay, you must:

• Be an employee (not a contractor)
• Have at least 2 years' continuous service
• Be made redundant or offered unsuitable alternative work

How is it Calculated?

Redundancy pay is based on your age and length of service:

• Under 22: 0.5 weeks' pay per year
• 22-40: 1 week's pay per year
• Over 41: 1.5 weeks' pay per year

Maximum Payment

There's a cap on weekly pay used for calculation. For 2025, the maximum is £700 per week. Maximum statutory redundancy pay is capped at £21,000.