UK reward metrics · Benefits & Lifestyle

What did an average redundancy cost last year, as a multiple of monthly base salary?

Source lumi HRBase 235 organisationsFieldwork 2026 H1

31.9%3x-4x

31.9% of organisations in the lumi HR community answered “3x-4x” on average redundancy cost (x monthly base salary) (base: 235 UK organisations, 2026 H1).

Figures describe organisations in the lumi HR community, not a random sample of UK employers.

How UK organisations answered

Less than 1x 9.8% 1x-2x 15.7% 2x-3x 22.6% 3x-4x 31.9% 4x-5x 13.6% More than 5x 6.4% No redundancies in the period 0%
Average redundancy cost (x monthly base salary) (base: 235 organisations, 2026 H1). Percentages percentages may not sum to 100 because of rounding.
Average redundancy cost (x monthly base salary): share of organisations by answer
AnswerShare of organisations
Less than 1xrare9.8%
1x-2xrare15.7%
2x-3xalternative22.6%
3x-4xcommon31.9%
4x-5xrare13.6%
More than 5xrare6.4%
No redundancies in the period0%

Common, alternative and rare describe how each answer sits against the community: the most chosen answer is common; an answer chosen by fewer than one in five organisations is rare.

Definition

Average total cost of one redundancy over the last completed year, as a multiple of the employee's MONTHLY base salary. Include statutory and enhanced redundancy pay, pay in lieu of notice and settlement sums. See the methodology for how the base is built, how not-applicable answers are handled, the public floor, and which organisations are excluded.

Cite this figure
Source: lumi HR, UK Reward Metrics, September 2026, lumihr.co.uk/metrics/average-redundancy-cost-x-monthly-base-salary
Last updated 19 September 2026 · Data licence: CC BY 4.0 for the figures in the CSV download.

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