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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.

Reviewed by CentExactRates effective 10 sourcesCalculated in your browser. Shared links include inputs.

Statutory redundancy pay

£8,769.23

12 weeks' pay for 10 years of service counted

All of it tax-free
Where you work
Part of the UK

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.

Your job
£

Your average weekly pay before tax, which the calculator takes as your salary divided by 52; it is capped at 751.

Each year of service is paid by the age you were for the whole of it.

  • 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

Years of service and the weeks' pay each earns
ServiceYearsWeeks' pay
Years aged 41 and over46
Years aged 22 to 4066
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
Rates, caps and service rules come from the severance dataset listed under Data sources.

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 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

United Kingdom: statutory redundancy pay, from 6 April 2026GOV.UKWithin its effective period
Ireland: statutory redundancy paymentWorkplace Relations CommissionWithin its effective period
Australia: National Employment Standards redundancy pay, and the tax-free amount for 2026-27Fair Work Act 2009Within its effective period
Canada: severance pay under the Canada Labour Code and Ontario's Employment Standards ActGovernment of CanadaWithin its effective period
France: indemnité légale de licenciementService-public.frWithin its effective period
Spain: indemnización por despido objetivo e improcedenteEstatuto de los Trabajadores (BOEWithin its effective period
Netherlands: transitievergoeding, 2026RijksoverheidWithin its effective period
Germany: severance under § 1a KSchG§ 1a KSchGWithin its effective period
India: gratuity under the Code on Social Security 2020PIBWithin its effective period
Sri Lanka: gratuity under the Payment of Gratuity Act No. 12 of 1983Payment of Gratuity Act No. 12 of 1983Within 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.

CentExactCalculator publisher

CentExact publishes the calculation method, worked examples and available data sources. Automated checks cover reference calculations; they do not certify a result for your circumstances or imply approval by a lender or tax authority.

How we build and test our calculators

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.