UK redundancy pay and take-home calculator
Calculate statutory redundancy pay, then add the rest of your offer to see the combined tax-free amount, taxable amount, Income Tax, employee National Insurance and estimated cash you keep. Free, with no signup.
Your full package, broken down
Enter your age, full years of service and average weekly pay to begin.
Statutory redundancy rates
Effective 6 April 2026. The rate applies to your age during each completed year of service, so the calculator walks backwards one year at a time rather than applying your current age to every year.
| Age during each year of service | Statutory entitlement |
|---|---|
| Under 22 | 0.5 weeks of pay |
| 22 to 40 | 1 week of pay |
| 41 and over | 1.5 weeks of pay |
Service is capped at 20 years, weekly pay at £751, and statutory entitlement at £22,530.
Methodology, coverage and public sourcesEngland, Scotland and Wales covered · Northern Ireland excluded · GOV.UK-backed assumptions
Coverage and assumptions
- •Statutory entitlement covers employees in England, Scotland and Wales. Northern Ireland has separate legislation and is not included.
- •Only full completed years count. At least 2 years of continuous service are required, and no more than 20 years are used.
- •The age bands are applied to each completed service year by walking backwards from the age entered.
- •The £30,000 exemption is one combined cap across statutory redundancy, enhanced or contractual severance, and non-cash benefits.
- •PILON and holiday pay are treated as earnings from the first pound for income tax and employee National Insurance.
- •Income tax is the incremental annual liability after adding the taxable termination amount to taxable pay already received in the same tax year.
- •Employee National Insurance uses the existing annual UK salary-engine thresholds. Actual payroll withholding can differ by pay period.
- •Employer Class 1A National Insurance is excluded because it is the employer's cost, not a deduction from the employee's payment.
- •The calculation assumes no termination payments beyond the amounts entered and never infers whether a payment is PILON, severance, or holiday pay.
- •If taxable pay already received is left blank, the tax estimate assumes no other taxable income in this tax year.
- •Estimate for guidance only, not legal or tax advice. Your employer is responsible for applying PAYE correctly.
Public sources
Statutory rates effective 6 April 2026; tax calculations use the existing UK salary engine for tax year 2026/27.
- GOV.UK
Statutory redundancy age bands, eligibility, weekly-pay average, 20-year service cap, and rates effective 6 April 2026.
https://www.gov.uk/redundancy-your-rights/redundancy-pay
- GOV.UK
Combined £30,000 termination-payment exemption and treatment of PILON, holiday pay, wages, bonuses, and employer Class 1A National Insurance.
https://www.gov.uk/termination-payments-and-tax-when-you-leave-a-job/what-you-pay-tax-and-national-insurance-on
- HM Treasury / House of Commons Library
Income-tax rates, Personal Allowance & employee National Insurance for 2026/27 (frozen to 2031).
https://www.gov.uk/income-tax-rates
- Scottish Government
Scottish Income Tax rates and bands for 2026/27.
https://www.gov.scot/publications/scottish-income-tax-technical-factsheet/
UK redundancy pay, answered
Is the £30,000 tax-free amount available for every payment?
No. The £30,000 exemption is one combined cap across statutory redundancy pay, enhanced or contractual severance, and non-cash benefits. It is not a separate allowance for each component.
Are PILON and untaken holiday pay covered by the exemption?
No. Payment in lieu of notice and untaken holiday pay are treated as earnings from the first pound for Income Tax and employee National Insurance. Enter them separately rather than including them in severance.
What happens if I enter statutory redundancy only?
No tax is due because the maximum statutory entitlement of £22,530 is below the combined £30,000 tax-free threshold.
Which parts of the UK does this calculator cover?
The statutory calculation covers England, Scotland and Wales. Northern Ireland has separate redundancy legislation and is excluded. Scottish income-tax bands are available for the taxable parts of the package.
Need to understand your pay after redundancy? Use the UK take-home pay calculator to estimate ordinary salary deductions for 2026/27.