UK reward metrics · Benefits & Lifestyle

What redundancy pay terms do UK organisations typically offer?

Source lumi HRBase 262 organisationsFieldwork 2026 H1

58.4%Enhanced redundancy pay (standard formula)

58.4% of organisations in the lumi HR community answered “Enhanced redundancy pay (standard formula)” on redundancy pay terms offered (base: 262 UK organisations, 2026 H1).

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

How UK organisations answered

Statutory only (no enhancement) 20.2% Enhanced redundancy pay (standard form 58.4% Enhanced redundancy pay (varies by gra 2.3% Discretionary / negotiated case-by-cas 19.1% Not applicable 0%
Redundancy pay terms offered (base: 262 organisations, 2026 H1). Percentages percentages may not sum to 100 because of rounding.
Redundancy pay terms offered: share of organisations by answer
AnswerShare of organisations
Statutory only (no enhancement)alternative20.2%
Enhanced redundancy pay (standard formula)common58.4%
Enhanced redundancy pay (varies by grade/tenure)rare2.3%
Discretionary / negotiated case-by-caserare19.1%
Not applicable0%

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

Whether redundancy pay is statutory only or enhanced, and how any enhancement is structured. 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/redundancy-pay-terms-offered
Last updated 19 September 2026 · Data licence: CC BY 4.0 for the figures in the CSV download.

See how your organisation compares

Members see their own organisation against the peer group, by sector and size, on every metric.

Book a call