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UK Employment Rights 2026/27

Redundancy Pay — FAQ

Everything you need to know about redundancy pay and your rights in the UK.

You must have been working for your employer for 2 years or more to be eligible for statutory redundancy pay.

The first £30,000 of redundancy pay is tax-free. Anything above that is subject to Income Tax and National Insurance.

The UK government caps the weekly pay used for calculation. As of April 2026, this is £751, and it usually increases every April.

Calculation depends on: 0.5 week's pay for each full year under age 22; 1 week's pay for each full year age 22 to 40; 1.5 week's pay for each full year age 41 or over.

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