Redundancy Pay and Tax Calculator
Estimate your statutory redundancy pay
Calculate statutory redundancy from your age, service and weekly pay cap, with optional package and 2026/27 tax estimates.
Your age at the date of redundancy.
Full continuous years with your current employer (partial years do not count).
Choose weekly or annual gross pay for statutory redundancy and tax banding.
Used for statutory redundancy (weekly cap £751) and estimated tax bands.
Common annual salaries:
Extra contractual or ex-gratia redundancy on top of statutory. Counts toward the £30,000 exemption.
Payment instead of working notice. Normally taxable as earnings, not covered by the £30,000 exemption.
Accrued holiday paid on leaving. Normally taxable as earnings.
Outstanding bonus or wages. Normally taxable as earnings.
Your estimated statutory redundancy pay
The £30,000 exemption applies only to qualifying termination payments (statutory + enhanced). PILON, holiday pay and bonus/unpaid wages are taxed as earnings.
Package breakdown
Payments
Tax treatment
Statutory age bands
Key 2026/27 limits
£751.00
Weekly pay cap
Statutory week's pay
£30,000.00
Tax-free termination
Combined exemption
£22,530.00
Max statutory pay
20 years × 1.5 weeks
About the Redundancy Pay & Tax Calculator
Use this UK statutory redundancy pay calculator to estimate what your employer may owe based on your age, complete years of service and capped weekly pay. Optional package and tax estimates use 2026/27 rates.
Enter your age, years of service and weekly or annual salary, plus optional enhanced redundancy, PILON/notice pay, unused holiday pay and bonus/unpaid wages. The calculator shows tax-free termination pay, taxable employment payments, estimated Income Tax and NI, and take-home.
Statutory redundancy uses the £751 weekly cap and maximum 20 years of service. The first £30,000 of qualifying termination payments is usually tax-free. PILON, holiday pay and bonuses are taxed separately as earnings.
Official sources: GOV.UK statutory redundancy pay, tax on termination payments, and GOV.UK redundancy pay calculator.