Pay & tax
Severance and Redundancy Pay Calculator
The statutory minimum redundancy pay, severance or gratuity for your years of service, age and pay, with the caps and the tax-free amount, country by country.
Statutory redundancy pay
£8,769.23
12 weeks' pay for 10 years of service counted
One week's pay
£730.77
from your pay
Weeks of pay
12
Tax
£8,769.23
tax-free
United Kingdom statutory minimum. An estimate from published rates, confirm current figures with the official source.
How the payment is counted
| Service | Years | Weeks' pay |
|---|---|---|
| Years aged 41 and over | 4 | 6 |
| Years aged 22 to 40 | 6 | 6 |
The rule this was worked out under
Employment Rights Act 1996, sections 135 and 162; you need two years' continuous service.
Half a week's pay for each full year under 22, one week from 22 to 40 and one and a half weeks from 41, for up to 20 years. One week's pay is a year's pay divided by 52, £730.77. 12 weeks of it make £8,769.23.
How the payment is taxed
The first 30,000 of redundancy pay is free of income tax and National Insurance, which covers the whole statutory amount.
The whole statutory payment is within the exemption.
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How this is calculated
Statutory redundancy pay, severance and gratuity are all counted the same way: a number of weeks', months' or days' pay for each year of service, with caps on the pay per unit, the years counted and the total. The calculator applies your country's statute to your pay, service and, in Britain, your age in each year, then shows how much of the payment the tax authority exempts. Five countries in the list, among them the United States and Japan, set no statutory payment at all, and the calculator says so instead of inventing one.
paymentmin(total cap, unit pay × Σ units a year × years counted in each band)
- units a year
- weeks, months or days of pay the statute gives for each year of service
- unit pay
- a week's, a month's or a day's pay, capped where the law caps it
What this does not include
- Notice pay or pay in lieu of notice, which is owed on top of severance.
- Contractual, collective agreement or negotiated payments above the statutory minimum.
- Holiday pay, bonuses and other final pay owed on leaving.
- Spain's 45-day tranche for service before 12 February 2012.
- Compensation for unfair or unlawful dismissal awarded by a tribunal or court.
How this calculator works
How statutory redundancy pay is worked out, and when nothing is owed. Weeks or months of pay per year of service, the age bands and caps, what counts as a year, where no statutory payment exists, and how it is taxed.
Data sources
| Dataset | Authority | Effective | Status |
|---|---|---|---|
| United Kingdom: statutory redundancy pay, from 6 April 2026 | GOV.UK | Within its effective period | |
| Ireland: statutory redundancy payment | Workplace Relations Commission | Within its effective period | |
| Australia: National Employment Standards redundancy pay, and the tax-free amount for 2026-27 | Fair Work Act 2009 | Within its effective period | |
| Canada: severance pay under the Canada Labour Code and Ontario's Employment Standards Act | Government of Canada | Within its effective period | |
| France: indemnité légale de licenciement | Service-public.fr | Within its effective period | |
| Spain: indemnización por despido objetivo e improcedente | Estatuto de los Trabajadores (BOE | Within its effective period | |
| Netherlands: transitievergoeding, 2026 | Rijksoverheid | Within its effective period | |
| Germany: severance under § 1a KSchG | § 1a KSchG | Within its effective period | |
| India: gratuity under the Code on Social Security 2020 | PIB | Within its effective period | |
| Sri Lanka: gratuity under the Payment of Gratuity Act No. 12 of 1983 | Payment of Gratuity Act No. 12 of 1983 | Within its effective period |
Every document each dataset was read from, its notes and how the figures were checked are listed in the guide's data sources.
Figures are estimates derived from published rates and rules, current at the review date shown at the top of this page and taken from the sources listed under Data sources on this page. Rates, fees and thresholds change; always confirm current values with the official source before relying on a result.