Factcard
Redundancy pay
Statutory redundancy is calculated using the employee's age, length of service (capped at 20 years) and weekly pay (capped each April). Great Britain and Northern Ireland publish separate caps and unfair dismissal award limits — both are shown below.
How statutory redundancy is calculated
- 0.5 week's pay for each full year of service while under age 22.
- 1 week's pay for each full year of service while aged 22 to 40.
- 1.5 weeks' pay for each full year of service while aged 41 or over.
- Length of service capped at 20 years; weekly pay capped at the statutory figure published each April.
- Maximum statutory payment = 20 × 1.5 × weekly cap.
Great Britain — rates
| Item | 2025-26 | 2026-27 |
|---|---|---|
| Statutory cap on a week's pay (redundancy) | £719 | £751 |
| Maximum statutory redundancy payment (20 × 1.5 × cap) | £21,570 | £22,530 |
| Minimum basic award (certain automatically unfair dismissals) | £8,763 | £9,157 |
| Compensatory award cap (unfair dismissal) | £118,223 | £123,543 |
What this means: The new statutory cap applies to dismissals where the effective date of termination is on or after 6 April 2026.
Northern Ireland — rates
| Item | 2025-26 | 2026-27 |
|---|---|---|
| Statutory cap on a week's pay (redundancy) | £749 | £783 |
| Maximum statutory redundancy payment (20 × 1.5 × cap) | £22,470 | £23,490 |
| Minimum basic award (certain automatically unfair dismissals) | £9,102 | £9,512 |
| Compensatory award cap (unfair dismissal) | £118,455 | £123,785 |
What this means: Northern Ireland publishes its own caps and award limits — don't apply the GB figures to NI dismissals.
Sources
Great Britain: gov.uk/redundancy-your-rights/redundancy-pay. Northern Ireland: nidirect.gov.uk/articles/redundancy-pay.
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