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.
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.
You need two years' continuous service to qualify at all. Contractual redundancy schemes are often more generous and follow their own rules.
Redundancy Pay Calculator UK →
Free, no sign-up, runs in your browser. Your figures are never sent anywhere.
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 |
- Tax rebate calculator — leaving mid-year usually means overpaid tax
- Sick pay calculator — another statutory entitlement with a fixed formula
- Reverse tax calculator — work out the salary you need next
- UK tax rates and thresholds 2026/27 — every band and threshold on one page
- Take-home pay statistics — effective and marginal rates from £20,000 to £200,000, free to cite
- How the calculator works — the order of calculation and the source for every rate
- rates.json — the same figures as machine-readable JSON, no key required
- Maternity Pay Calculator UK
- Statutory Sick Pay Calculator UK
- Marriage Allowance Calculator UK
- Child Benefit Calculator UK
Full index: UK Tax & Take-Home Pay Guide — twelve guides, twelve worked salary examples and a reference table covering the whole UK system.
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.
Found a wrong number? Open an issue with the figure and a gov.uk link. Tax errors are worth fixing quickly.
CC BY 4.0. Use it, quote it, fork it.