Does My Age Affect My Redundancy Pay?

The age multiplier — at a glance

Your age at the date of termination determines how many weeks' pay you receive for each year of service. The older you are, the more you receive per year:

• Under 22: 0.5 weeks' pay per year of service
• 22 to 40: 1.0 week's pay per year of service
• 41 and over: 1.5 weeks' pay per year of service

These multipliers are set by law and apply to everyone in the UK — employers cannot offer less, but can offer more under a contractual scheme.

Why the multiplier increases with age

The rationale behind the age-weighted formula reflects the practical reality of finding new work. Older workers typically face longer job search periods and greater difficulty retraining, so the law compensates them more generously for each year they have given to the same employer.

It is not about unfairness to younger workers — it is a deliberate policy to reflect the economic reality of older workers in the labour market. A 25-year-old with 3 years' service and a 50-year-old with 3 years' service will receive the same number of weeks per year, but the older worker receives 1.5 weeks per year compared to 1.0.

How the multiplier is applied across your working life

The redundancy formula is calculated on a per-year-of-service basis, but each year is attributed to the age band the employee was in at the time of completing that year of service. This means:

• Years completed before age 22 are counted at 0.5× per year
• Years completed between ages 22 and 40 are counted at 1.0× per year
• Years completed at age 41 or over are counted at 1.5× per year

This is why the formula is applied year-by-year — an employee made redundant at 53 with 12 years' service will have some years counted at 0.5×, some at 1.0×, and some at 1.5× depending on when those years were completed.

Use our calculator to see how your specific age and service history affects your entitlement.

Example calculations

Example 1 — younger employee:

Employee aged 25, weekly pay £600, 5 years' service. All 5 years completed between ages 20 and 25, so all at 1.0×: 5 × £600 = £3,000.

Example 2 — employee entering higher band:

Employee made redundant at age 45, weekly pay £800, 10 years' service:

• First 3 years (ages 35 to 38): 3 × £800 = £2,400
• Next 7 years (ages 39 to 45): 7 × £800 = £5,600
• Total: £2,400 + £5,600 = £8,000

Example 3 — all years in top band:

Employee aged 55, weekly pay £900, 15 years' service. All 15 years completed at age 41 or over: 15 × £900 × 1.5 = £20,250.

The weekly cap still applies

Regardless of your age, the weekly pay figure used in the calculation is capped at the statutory maximum (£751/week in England, Scotland, and Wales — £783 in Northern Ireland). This means the age multiplier cannot push your payout above the legal maximum, even for very high earners.

For example, a 60-year-old earning £2,000/week with 20 years' service would calculate as: 20 × £751 × 1.5 = £22,530 — which is exactly the statutory ceiling. Any further years of service cannot increase the total.

Read our full guide on the weekly pay cap →

What if I was made redundant just before my birthday?

The relevant age is your age at the date you are made redundant — not your age at the end of the notice period or any other date. If you turn 41 the week after being made redundant, the lower 1.0× multiplier still applies to all years of service.

This is a common point of confusion and occasionally dispute. Your employer should use your age on the effective date of termination as recorded in your P45 or redundancy notice.