# Settlement Calculator

> Settlement agreement calculator: statutory redundancy baseline (weekly pay capped at £751) plus typical ex-gratia of 1-3 months' salary. £30,000 tax-free rule.

## Key facts

- A 45-year-old on £40,000 with six years' service typically negotiates a settlement of £10,092–£13,426: a £6,759 statutory redundancy baseline plus one to two months' salary ex-gratia.
- Statutory redundancy pay caps out at £22,530 for redundancies on or after 6 April 2026: 30 weeks (20 years at 1.5 weeks) at the £751 weekly maximum.
- The first £30,000 of an ex-gratia settlement payment is income-tax-free under ITEPA 2003 s403, and statutory redundancy pay counts toward the same limit.
- Employers typically contribute £350–£500 toward the legal advice an employee must take for a settlement agreement to bind them.

## Key pages

- [Settlement agreement calculator: what is your exit worth?](https://settlementcalculator.uk/): the main tool, answer above the fold.
- [Settlement agreement tax: what is tax-free and what is taxed](https://settlementcalculator.uk/settlement-agreement-tax/): The first £30,000 of ex-gratia settlement money is income-tax-free under ITEPA 2003. Notice pay is always taxed. How each line of a settlement agreement is treated.
- [What is a fair settlement agreement? Typical UK amounts](https://settlementcalculator.uk/what-is-a-fair-settlement-agreement/): A reasonable settlement typically pays notice plus statutory redundancy plus 1-3 months' ex-gratia salary, more where discrimination is alleged. What moves the number.
- [Who pays for settlement agreement legal advice?](https://settlementcalculator.uk/who-pays-for-settlement-agreement-advice/): Your employer almost always pays £350-£500 toward the solicitor who must advise you before a settlement agreement can bind you. How the fee works and what it covers.
- [Typical UK settlement agreement values by salary and service, 2026](https://settlementcalculator.uk/#data): original data table, updated 2026-08-15.
- [Full site content as markdown](https://settlementcalculator.uk/llms-full.txt)

## Data

- Typical UK settlement agreement values by salary and service, 2026. Methodology: Statutory baseline: 0.5/1/1.5 weeks per year by age band, weekly pay capped at £751 (rate from 6 April 2026), 20-year cap. Ex-gratia: 1–2 months' salary, the typical observed range for redundancy-shaped exits. Notice, holiday and bonuses excluded.
- Last updated: 2026-08-15. Every figure cites its source inline.
- Source: gov.uk, redundancy pay and the weekly cap: https://www.gov.uk/redundancy-your-rights/redundancy-pay
- Source: gov.uk, official statutory redundancy calculator: https://www.gov.uk/calculate-your-redundancy-pay
- Source: ITEPA 2003 s403, the £30,000 threshold: https://www.legislation.gov.uk/ukpga/2003/1/section/403
- Source: Employment Rights Act 1996 s203, requirement for independent advice: https://www.legislation.gov.uk/ukpga/1996/18/section/203
- Source: Acas, settlement agreements: https://www.acas.org.uk/settlement-agreements

## Citation

Cite as: "Typical UK settlement agreement values by salary and service, 2026", Settlement Calculator, https://settlementcalculator.uk/ (updated 2026-08-15).

## About

- Settlement Calculator is an information site. We are not a firm of solicitors and do not provide claims management services; we are not affiliated with Acas, HMRC or any government body. Figures are typical observed outcomes and statutory minimums as at the updated date, and nothing here is legal or tax advice: have any agreement reviewed by an independent solicitor before signing, as the law in any case requires.
- Operated by settlementcalculator.uk. Contact: enquiries@settlementcalculator.uk