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UK Payslip Glossary

Every term you might see on a UK payslip, explained in plain English. 97 entries, updated for the 2026/27 tax year.

N

Notice PayTermination
Pay during notice or in lieu of notice, fully taxed and NI-charged. Full definition

P

Post-Employment Notice Pay (PENP)Termination
A statutory calculation that strips the value of any unworked notice out of a termination package and taxes it as ordinary earnings. Full definition

R

Redundancy PayTermination
Compensation for job loss; first £30,000 is income-tax free. Full definition

S

Settlement PaymentTermination
A negotiated, lump-sum payment made on or after the termination of employment in exchange for the employee waiving their statutory and contractual claims. Full definition

T

Termination Payment (£30,000 threshold)Termination
A payment made because employment is ending; the first £30,000 of genuine compensation is income-tax free, the excess is taxed. Full definition