32.7%Basic salary + contractual allowances
32.7% of organisations in the lumi HR community answered “Basic salary + contractual allowances” on redundancy pay calculation basis (base: 202 UK organisations, 2026 H1).
Figures describe organisations in the lumi HR community, not a random sample of UK employers.
How UK organisations answered
| Answer | Share of organisations |
|---|---|
| Basic salary onlyrare | 3% |
| Basic salary + contractual allowancescommon | 32.7% |
| Average earnings over a reference periodalternative | 29.7% |
| Includes regular overtimealternative | 27.7% |
| Includes variable pay (bonus/commission) where applicablerare | 4% |
| Varies by employee group/contract | 1.5% |
| Other | 1.5% |
Common, alternative and rare describe how each answer sits against the community: the most chosen answer is common; an answer chosen by fewer than one in five organisations is rare.
Definition
Which pay elements are included when calculating redundancy payments, from basic salary to variable pay. See the methodology for how the base is built, how not-applicable answers are handled, the public floor, and which organisations are excluded.
Source: lumi HR, UK Reward Metrics, September 2026, lumihr.co.uk/metrics/redundancy-pay-calculation-basisLast updated 19 September 2026 · Data licence: CC BY 4.0 for the figures in the CSV download.
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