How to read these examples
Each example covers: - Statutory redundancy: HMRC formula, tax-free - Enhanced redundancy (where applicable): contractual top-up, also under £30,000 tax-free threshold - Notice pay: fully taxable + NI'd - Holiday pay accrued: fully taxable + NI'd - Total gross and estimated net after tax/NI
All figures use the 2026/27 statutory weekly cap of £719 and tax bands. Net outcomes assume standard 1257L tax code, rest-of-UK rates, mid-year termination, and no pension sacrifice.
Example 1 — Entry-level, 2 years' service, £22,000 salary, age 24
Statutory: 2 years × 1 week × £423 (£22k/52) = £846 tax-free
Notice: 2 weeks × £423 = £846 gross → ~£610 net after tax/NI
Holiday: assume 6 days accrued × (£22,000/260) = £508 gross → ~£366 net
Total: £2,200 gross → ~£1,822 net
The smallest meaningful UK redundancy outcome. At minimum service + low salary + low age band, the absolute statutory floor.
Example 2 — Junior professional, 4 years' service, £30,000 salary, age 28
Statutory: 4 × 1 × £577 (£30k/52) = £2,308 tax-free
Notice: 4 weeks × £577 = £2,308 → ~£1,662 net
Holiday: 8 days × £115.38/day = £923 → ~£665 net
Total: £5,539 gross → ~£4,635 net
Roughly 2 months of gross income — typical for an early-career redundancy.
Example 3 — Established professional, 7 years' service, £45,000 salary, age 33
Statutory: 7 × 1 × £719 (capped) = £5,033 tax-free (cap bites because £865/wk > £719)
Notice: 7 weeks × £865 = £6,055 → ~£4,360 net (basic + slight higher rate slice)
Holiday: 12 days × £173/day = £2,077 → ~£1,495 net
Total: £13,165 gross → ~£10,888 net
Around 3 months of gross income. Statutory cap reduces statutory by about £1,000 compared to uncapped.
Example 4 — Senior professional, 10 years' service, £55,000 salary, age 36 (3 years in 41+ band? No — started age 26)
Statutory (all years 22-40 band): 10 × 1 × £719 = £7,190 tax-free
Notice: 10 weeks × £1,058 = £10,580 → ~£6,558 net (higher rate on most)
Holiday: 12 days × £212/day = £2,538 → ~£1,575 net
Total: £20,308 gross → ~£15,323 net
Just over 3 months of gross. Cap on weekly pay still bites; no age-band boost yet.
Example 5 — Mid-career, 8 years' service, £50,000 salary, age 44 (4 years in 41+ band)
Statutory split: - Years 1-4 (aged 36-40): 4 × 1 × £719 = £2,876 - Years 5-8 (aged 41+): 4 × 1.5 × £719 = £4,314 - Statutory total: £7,190 tax-free
Notice (8 weeks contractual): 8 × £961 = £7,692 → ~£4,615 net (higher rate)
Holiday: 10 days × £192/day = £1,923 → ~£1,154 net
Total: £16,805 gross → ~£12,959 net
The age-band shift adds £1,438 vs the same scenario all in 22-40 band.
Example 6 — Senior, 15 years' service, £70,000 salary, age 48 (8 years in 41+ band, started at 33)
Statutory split: - Years 1-7 (aged 33-39): 7 × 1 × £719 = £5,033 - Years 8-15 (aged 40-47): 1 year × 1 × £719 + 7 × 1.5 × £719 = £719 + £7,549.50 = £8,268.50 - Statutory total: £13,301.50 tax-free
Enhanced (assume "1 week per year extra, no caps"): 15 × £1,346 = £20,192 tax-free (still under £30k threshold combined)
Notice (3 months): 13 weeks × £1,346 = £17,500 → ~£10,150 net (higher + 60% taper on slice depending on YTD)
Holiday: 14 days × £269/day = £3,769 → ~£2,186 net
Total: £54,762 gross → ~£45,829 net
Roughly 8 months of gross. This is where redundancy starts producing real career-transition runway.
Example 7 — Long-service mid-career, 18 years, £60,000 salary, age 50 (10 years in 41+)
Statutory split: - Years 1-8 (aged 32-39): 8 × 1 × £719 = £5,752 - Years 9-18 (aged 40-49): 1 year × 1 + 9 × 1.5 × £719 = £719 + £9,706.50 = £10,425.50 - Statutory total: £16,177.50 tax-free
Enhanced ("2 weeks per year, no caps"): 18 × 2 × £1,154 = £41,538
- £30,000 tax-free
- £27,716 taxable at higher rate (40%) = £11,086 tax → £16,629 net of taxable portion
Notice (3 months): 13 weeks × £1,154 = £15,000 → ~£8,700 net
Holiday: 14 days × £231/day = £3,231 → ~£1,874 net
Total: £75,946 gross → ~£57,380 net
Now approaching a year of post-tax living costs at typical UK rates.
Example 8 — Director-level, 20 years' service, £100,000 salary, age 55 (15 years in 41+)
Statutory split: - Years 1-5 (aged 35-39): 5 × 1 × £719 = £3,595 - Years 6-20 (aged 40-54): 1 × 1 × £719 + 14 × 1.5 × £719 = £719 + £15,099 = £15,818 - Statutory total: £19,413 tax-free
Enhanced ("2 weeks per year, no caps"): 20 × 2 × £1,923 = £76,923
- £30,000 tax-free combined with statutory (statutory £19,413 + enhanced £10,587 portion to fill threshold)
- £66,336 above-threshold at marginal rate
For a £100k earner, mid-year termination: above-threshold likely sits in higher-rate (40%) + some 60%-taper band: - Approximate tax on above-threshold redundancy: ~£28,000
Notice (6 months): 26 weeks × £1,923 = £50,000 → ~£28,000 net (some in 60% taper)
Holiday: 14 days × £385/day = £5,385 → ~£3,015 net
Total: £151,721 gross → ~£105,200 net without pension sacrifice
With pension sacrifice on the £66,336 above-threshold portion: ~£26,500 in additional tax saved. With sacrifice: ~£131,700 effective benefit (£105,200 cash + £26,500 saved + £66k now in pension).
This is where pension structuring becomes the dominant tax conversation.
Example 9 — Executive, 25 years' service, £150,000 salary, age 58 (statutory capped at 20 years)
Statutory (capped at 20 years' service): - All 20 capped years aged 41+: 20 × 1.5 × £719 = £21,570 (the absolute statutory maximum)
Enhanced ("3 weeks per year of service, no caps"): 25 × 3 × £2,885 = £216,346
Tax treatment: - First £30,000 of redundancy: tax-free (uses statutory + £8,430 of enhanced) - Above-threshold £207,917: at additional rate (45%) — combined with £150k salary, fully above £125,140 - Tax: ~£93,000 on above-threshold
Notice (12 months executive): £150,000 → ~£75,000 net
Holiday: 14 days × £577/day = £8,077 → ~£4,200 net
Total: £395,000 gross → ~£275,300 net
With aggressive pension sacrifice (up to £60k annual allowance + any carry-forward): - Could shelter £60,000-£150,000 from tax - Additional tax savings: £27,000-£67,500
Settlement agreement nearly mandatory at this level. Independent legal advice essential.
Example 10 — Public-sector long-service, 22 years, £45,000 salary, age 53 (12 years in 41+)
Statutory split: - Years 3-10 capped service starting (assume all in 22-40 band): 8 × 1 × £719 = £5,752 - Years 11-20 of capped service (aged 41-52, mostly 41+): 1 × 1 + 9 × 1.5 = £8,628 - Actually let me redo: 22 years of actual service but capped at 20. Last 20: started at 33 → years 1-7 in 22-40 band, years 8-20 in 41+ band - 7 × 1 × £719 + 13 × 1.5 × £719 = £5,033 + £14,021 = £19,054 - Statutory total: £19,054 tax-free
Enhanced (public sector schemes often "1 month per year, capped at 24 months"): typically generous; assume 22 × £3,750 = £82,500 (but check scheme specifics) - £30,000 tax-free combined - £71,554 taxable at marginal rate (higher rate ~£28,600 tax)
Notice (3 months): £11,250 → ~£8,100 net
Holiday: 14 days × £173/day = £2,423 → ~£1,415 net
Total: £115,227 gross → ~£82,400 net
Public-sector schemes are often more generous; check yours specifically.
Example 11 — Approaching retirement, 30+ years' service (capped 20), £55,000, age 62
Statutory (all 20 capped years 41+): 20 × 1.5 × £719 = £21,570 (max)
Enhanced (long-service tier, assume 25 weeks): 25 × £1,058 = £26,442 - £30,000 tax-free combined uses statutory + £8,430 enhanced - £17,572 above-threshold at higher rate
Notice (3 months): 13 weeks × £1,058 = £13,750 → ~£8,250 net
Holiday: 14 days × £212/day = £2,962 → ~£1,720 net
Total: £64,724 gross → ~£50,510 net
Combined with 25% tax-free pension lump sum (if pot is £200k, that's £50,000 extra tax-free), this delivers ~£100k tax-free at age 62 — significant retirement-bridge funding.
Example 12 — Part-time long-service, 12 years, £25,000 salary, age 47 (6 years in 41+)
Statutory split: - Years 1-6 (aged 35-40): 6 × 1 × £481 (£25k/52) = £2,884 - Years 7-12 (aged 41-46): 6 × 1.5 × £481 = £4,327 - Statutory total: £7,211 tax-free
Notice (12 weeks max statutory or contractual): 12 × £481 = £5,769 → ~£4,150 net
Holiday: 10 days × £96/day = £962 → ~£693 net
Total: £13,942 gross → ~£12,054 net
Part-time + long-service combinations often produce surprisingly meaningful statutory pay due to the age-band multiplier; weekly pay cap doesn't bite.
Comparison summary table
| Scenario | Service | Age | Salary | Total gross | Net (approx) |
|---|---|---|---|---|---|
| Entry-level | 2y | 24 | £22k | £2,200 | £1,822 |
| Junior professional | 4y | 28 | £30k | £5,539 | £4,635 |
| Established professional | 7y | 33 | £45k | £13,165 | £10,888 |
| Senior professional (no 41+) | 10y | 36 | £55k | £20,308 | £15,323 |
| Mid-career | 8y | 44 | £50k | £16,805 | £12,959 |
| Senior (mixed bands) | 15y | 48 | £70k | £54,762 | £45,829 |
| Long-service mid-career | 18y | 50 | £60k | £75,946 | £57,380 |
| Director-level | 20y | 55 | £100k | £151,721 | £105,200 |
| Executive | 25y | 58 | £150k | £395,000 | £275,300 |
| Public-sector long-service | 22y | 53 | £45k | £115,227 | £82,400 |
| Approaching retirement | 30y+ | 62 | £55k | £64,724 | £50,510 |
| Part-time long-service | 12y | 47 | £25k | £13,942 | £12,054 |
Using these as benchmarks
When your employer presents a redundancy offer:
- Find the example closest to your situation (similar age, service, salary)
- Compare the figure to your offer
- Major discrepancies need investigation — either your contract is unusually generous/strict, or someone has made an error
For pension sacrifice optimisation on packages above £30,000, see redundancy and pension →. For the underlying formula see statutory redundancy pay →.
In short
Twelve UK redundancy examples covering common scenarios at 2026/27 rates. Net outcomes vary from ~£1,800 (entry-level minimum) to ~£275,000 (executive with 25 years' service and substantial enhanced package). The statutory formula is fixed; the enhanced multiplier is where the biggest variation sits. Pension sacrifice on above-£30,000 portions amplifies net materially for higher-rate earners. For your own scenario, use the redundancy calculator → and take-home calculator →. For the broader cluster see the redundancy hub →.