Statutory Redundancy Entitlement
To qualify for statutory redundancy pay in the UK, you must have been working for your employer for at least two years. The amount you get depends on your age and length of service.
The 2025 Multipliers
- Under 22: Half a week's pay for each full year of service.
- 22 to 40: One week's pay for each full year of service.
- 41 and Over: One and a half weeks' pay for each full year of service.
Note: Weekly pay is capped at £643 (as of April 2024, expected to increase in April 2025).
Authentic FAQ (Search Console Data)
Is redundancy pay taxable in the UK?
Statutory redundancy pay is tax-free up to £30,000. Anything above this limit (including "notice pay") is subject to regular Income Tax and National Insurance.
What is PILON?
PILON stands for Pay in Lieu of Notice. It means you are paid for your notice period but don't have to work it. Unlike redundancy pay, PILON is fully taxable.
Can I get redundancy if I am self-employed?
No. Statutory redundancy pay only applies to individuals classified as "employees." Workers and self-employed contractors are generally not entitled.
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