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Redundancy Pay Calculator UK — Statutory Entitlement and the £30,000 Rule

Statutory redundancy pay is capped at £751 a week and £22,530 in total. The first £30,000 of any redundancy package is tax-free.

Reference notes for the UK tax year 2026/27, computed from HMRC's published rates rather than copied from another site.

How it works

Statutory entitlement depends on age and complete years of service, capped at 20 years:

Age during each year of service Weeks' pay
Under 22 0.5
22 to 40 1.0
41 and over 1.5

A week's pay is capped at £751, so higher earners hit the cap and the maximum statutory payment is £22,530.

Tax. The first £30,000 of a genuine redundancy payment is free of tax and National Insurance. Above that, Income Tax applies at your marginal rate.

Pay in lieu of notice is not part of the £30,000 exemption. It is taxed as normal earnings.

What this does not cover

You need two years' continuous service to qualify at all. Contractual redundancy schemes are often more generous and follow their own rules.

Use the calculator

Redundancy Pay Calculator UK →

Free, no sign-up, runs in your browser. Your figures are never sent anywhere.

Worked examples at real salaries

Full deduction breakdowns, computed on 2026/27 rates:

Salary Take-home a year Take-home a month
£25,000 after tax £21,519.60 £1,793.30
£35,000 after tax £28,719.60 £2,393.30
£50,000 after tax £39,519.60 £3,293.30
£60,000 after tax £45,357.40 £3,779.78

Related tools

Check the figures yourself

Related calculators on GitHub

Full index: UK Tax & Take-Home Pay Guide — twelve guides, twelve worked salary examples and a reference table covering the whole UK system.

Source and tax year

Figures are for the 2026/27 tax year, which runs 6 April 2026 to 5 April 2027, and were checked against gov.uk on 28 August 2026.

Rates change every April, and often at a Budget. Check the tax year a figure belongs to before relying on it.

Corrections

Found a wrong number? Open an issue with the figure and a gov.uk link. Tax errors are worth fixing quickly.

Licence

CC BY 4.0. Use it, quote it, fork it.

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Statutory redundancy pay is capped at £751 a week and £22,530 in total. The first £30,000 of any redundancy package is tax-free.

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