Notice and final pay
Final pay calculator: everything owed when a job ends
Put the separate amounts side by side, check them against your last payslip, and see which of them are taxed like wages.
Checked by Radif Partners · Editorial policy · Method and sources
Final pay is everything an employer owes on the day a job ends, and it usually comes from four separate rights. Statutory redundancy pay, worth up to £22,530 in Great Britain in 2026/27, is due after 2 years’ service when the job has gone, plus any enhanced amount your employer adds. Notice pay covers the notice period, whether you work it, spend it on garden leave or receive pay in lieu. Holiday pay covers statutory leave accrued but not taken, and is owed even after a dismissal for gross misconduct. Arrears are wages, overtime or commission already earned and still unpaid. Only the redundancy elements share the £30,000 tax-free threshold for termination payments; notice pay, holiday pay and arrears go through payroll and are taxed like salary. The calculator adds the four, shows the gross total and splits the redundancy money at the threshold.
Total due when the job ends, before tax
£15,488
| Redundancy pay (statutory + extra) | £9,600 |
| Notice pay | £5,120 |
| Holiday pay for untaken days | £768 |
| Arrears of pay | £0 |
| Redundancy pay inside the £30,000 threshold | £9,600 |
| Redundancy pay above the threshold (taxable) | £0 |
| Taxed as earnings (notice, holiday, arrears) | £5,888 |
Gross amounts. Only redundancy pay benefits from the £30,000 threshold (ITEPA 2003 s.403); notice pay, including pay in lieu, and holiday pay go through payroll like wages. This page does not work out income tax or National Insurance.
A worked example
An employee born on 2 March 1981 started on 16 June 2014 and earns £720 a week, five days a week. On 2 November 2026 the job is made redundant with pay in lieu of an 8-week contractual notice. The leave year started on 1 April 2026 and 9 days have been taken. Each line below comes from the site’s calculators:
| Element | How it is worked out | Gross amount |
|---|---|---|
| Statutory redundancy pay | 14.0 weeks × £720 (service counted to 25 January 2027) | £10,080 |
| Enhanced redundancy pay | From the employer’s scheme | £22,000 |
| Pay in lieu of notice | 12 weeks (statutory, longer than the contract) × £720 | £8,640 |
| Untaken holiday | 7.6 days × £144 | £1,090 |
| Total before tax | £41,810 |
The redundancy money comes to £32,080: £30,000 falls inside the £30,000 threshold and £2,080 is above it and taxable. The £9,730 of notice and holiday pay is taxed as earnings whatever happens. Because the notice was paid in lieu, section 145(5) pushes the date used for service and age to 25 January 2027, the end of the 12 weeks of statutory notice.
Checking your last payslip
- Wages to the last day. Normal pay up to the termination date, plus overtime and commission earned in the final period. If they are missing, enter them as arrears.
- Notice. The longer of the contract and the statute, priced at a week’s pay; see the notice period calculator.
- Holiday. Accrued statutory leave not taken, priced at a day’s pay; the holiday pay on leaving page shows the formula.
- Redundancy. The statutory figure from the redundancy pay calculator, and the enhanced amount, ideally shown on separate lines.
Amounts are gross. This site does not work out income tax or National Insurance; it shows which part is sheltered by the threshold and which is not. For how the threshold works, see redundancy pay and tax.