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🇬🇧United Kingdom Severance Pay Calculator

Calculate UK Statutory Redundancy Pay (SRP) with age brackets, the statutory weekly wage cap, 20-year service limit, and the £30,000 tax-free exemption.

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United Kingdom Severance Framework

Employment Rights Act 1996 (Statutory Redundancy Pay) • Currency: GBP ($)

Employment & Wage Parameters

$
$500$25,000
yrs
0 yrs40 yrs
mos
0 mos11 mos
$
$0$50,000
days
0 days45 days
yrs
18 yrs70 yrs
Estimated Net Severance Take-Home
$3,692
Gross Total$3,692
Est. Taxes$0
Effective Tax0%
Applied Statutory Calculation Formula:

5 weeks × £738/wk (capped at £751) for 5 years

Take-Home$4K

Severance Package Distribution

Net Take-Home100%
$3,692
Withheld Taxes0%
$0

Statutory Severance Itemized BreakdownTotal Service: 60 continuous months

Statutory Redundancy Pay (5 weeks, age-weighted per year)Capped at £751/week and 20 years
$3,692
Tax-Free Allowance (£30,000 Exemption)100% exempt from UK income tax and National Insurance
$3,692

United Kingdom Statutory Termination Law: Employment Rights Act 1996 (Statutory Redundancy Pay)

In the UK, employees with 2+ years of continuous service who are made redundant qualify for Statutory Redundancy Pay (SRP). The formula grants 0.5 to 1.5 weeks' pay per year worked depending on age, capped at £751/week and 20 years. The first £30,000 is completely tax-free.

Requires 2+ years of service. Each year counts by the age during that year: 0.5 week (<22), 1 week (22–40), 1.5 weeks (41+).
Capped at a maximum of 20 years of service and the statutory weekly wage ceiling (£751/week from 6 April 2026).
First £30,000 of statutory and ex-gratia redundancy pay is 100% tax-free in the UK.
Zero National Insurance deducted from redundancy compensation.

Compare with Other International Severance Models

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Frequently Asked Questions

What is the statutory severance formula in United Kingdom?

In the UK, employees with 2+ years of continuous service who are made redundant qualify for Statutory Redundancy Pay (SRP). The formula grants 0.5 to 1.5 weeks' pay per year worked depending on age, capped at £751/week and 20 years. The first £30,000 is completely tax-free.