NHS Redundancy Pay Calculator
Estimate your NHS redundancy payment under Agenda for Change — compare NHS and statutory redundancy entitlements based on your age, service, and salary.
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NHS Redundancy Breakdown
Statutory Redundancy Comparison
You Receive With NHS Terms
NHS Redundancy Pay Guide
Under Agenda for Change (Section 16), NHS staff who are made redundant are entitled to enhanced redundancy pay based on continuous reckonable service. NHS redundancy terms are significantly more generous than the statutory minimum.
| Years of Service | NHS Redundancy | Statutory Redundancy | Difference |
|---|---|---|---|
| 2 years | 2 months' pay | 1–3 weeks' pay* | Significantly more |
| 5 years | 5 months' pay | 2.5–7.5 weeks' pay* | Significantly more |
| 10 years | 10 months' pay | 5–15 weeks' pay* | Significantly more |
| 20 years | 20 months' pay | 10–30 weeks' pay* | Significantly more |
| 24+ years | 24 months' pay (max) | 12–30 weeks' pay* | Significantly more |
*Statutory amount depends on age. Weekly pay is capped at £700 (2025/26). Max 20 years service counted.
Key Rules to Know
Minimum 2 Years' Service
You must have at least 2 years of continuous reckonable NHS service to qualify for redundancy pay under either NHS or statutory terms. Service with different NHS employers counts if there is no break in continuity.
NHS Pay Is Based on Actual Salary
NHS redundancy pay is calculated at 1 month's actual pay per year of reckonable service, with no weekly pay cap. This is significantly more generous than statutory redundancy, which caps weekly pay at £700 (2025/26).
Maximum 24 Years
Under NHS terms, a maximum of 24 years of reckonable service can be used for the calculation. This means the maximum NHS redundancy payment is 24 months' pay, regardless of actual length of service beyond 24 years.
Pension Considerations
If you are aged 55 or over with at least 2 years' pensionable service, you may also be eligible for early access to your NHS pension benefits. This is separate from redundancy pay and depends on your pension scheme membership.
What Is an NHS Redundancy Pay Calculator?
An NHS Redundancy Pay Calculator is an online tool designed to estimate the redundancy payment an NHS employee would receive if their role is made redundant. The calculator takes into account the individual's annual salary, age at the date of redundancy, and length of continuous NHS service under the Agenda for Change (AfC) terms and conditions.
The primary purpose of the NHS Redundancy Pay Calculator is to help NHS staff understand the difference between NHS contractual redundancy pay and statutory redundancy pay. NHS redundancy terms under Section 16 of the AfC handbook are significantly more generous than the statutory minimum, providing 1 month's actual pay per year of reckonable service (up to 24 years), compared to statutory redundancy which uses a capped weekly rate.
How Does the NHS Redundancy Pay Calculator Work?
The NHS Redundancy Pay Calculator follows a systematic process to estimate your redundancy entitlement:
- Enter Annual Salary — Input your current gross annual salary. This is used to calculate both your monthly pay (for NHS redundancy) and weekly pay (for statutory redundancy comparison).
- Enter Age at Redundancy — Your age affects the statutory redundancy calculation, where different multipliers apply for years worked under 22, between 22–40, and 41 and over.
- Enter Years of Continuous Service — Input your complete years of continuous NHS service. A minimum of 2 years is required to qualify for any redundancy pay.
- Review NHS Redundancy Pay — The calculator computes 1 month's pay multiplied by reckonable years of service (capped at 24 years), using your actual salary with no weekly cap.
- Review Statutory Comparison — The statutory calculation applies age-weighted multipliers (0.5, 1.0, or 1.5 weeks per year of service), with weekly pay capped at £700 and maximum 20 years counted.
- Compare Entitlements — The results panel shows both amounts side by side, highlighting the additional amount you receive under NHS terms.
Is the NHS Redundancy Pay Calculator Accurate?
Yes, the NHS Redundancy Pay Calculator is designed to reflect the official Agenda for Change terms (Section 16). However, individual circumstances may vary. Factors such as breaks in service, prior redundancy payments, pension access rights, and local trust policies may affect your actual entitlement. Always confirm with your HR department for a definitive calculation.
What is NHS Redundancy Pay?
NHS Redundancy Pay is an enhanced redundancy payment available to NHS employees under Agenda for Change terms and conditions (Section 16). It provides significantly more generous compensation than the statutory minimum when an NHS role is made redundant. Under NHS terms, eligible staff receive 1 month's actual pay for each complete year of continuous reckonable service, up to a maximum of 24 years (24 months' pay).
Unlike statutory redundancy, which caps weekly pay and uses age-based multipliers, NHS redundancy pay uses the employee's actual monthly salary with no cap. This means higher-paid staff benefit proportionally more from NHS terms compared to statutory entitlements.
Who is Eligible for NHS Redundancy Pay?
NHS Redundancy Pay eligibility extends to all staff employed under Agenda for Change contracts who have at least 2 years of continuous reckonable NHS service. This includes full-time, part-time, and fixed-term employees. Part-time staff receive redundancy pay calculated on their actual (pro-rata) salary.
What Counts as Reckonable Service?
Reckonable service is continuous NHS service that counts towards your redundancy calculation. It includes service with any NHS employer, provided there has been no break in continuity of more than one week. Transfers between NHS organisations, including under TUPE arrangements, generally preserve continuity. However, breaks in service or periods of employment outside the NHS may affect your reckonable service calculation.
What is the Difference Between NHS and Statutory Redundancy Pay?
The key differences between NHS and statutory redundancy pay are:
- Calculation basis: NHS uses 1 month's actual pay per year; statutory uses 0.5–1.5 weeks' capped pay per year.
- Pay cap: NHS has no weekly pay cap; statutory caps weekly pay at £700 (2025/26).
- Maximum service: NHS counts up to 24 years; statutory counts up to 20 years.
- Age weighting: NHS does not use age-based multipliers; statutory applies 0.5 weeks (under 22), 1 week (22–40), or 1.5 weeks (41+) per year.
Is NHS Redundancy Pay Taxable?
The first £30,000 of redundancy pay is tax-free. Any amount above £30,000 is subject to income tax at your marginal rate. Redundancy pay is not subject to National Insurance contributions. This applies to both NHS and statutory redundancy payments.
Can I Access My NHS Pension if Made Redundant?
If you are aged 55 or over with at least 2 years of pensionable NHS service, you may be eligible for early payment of your NHS pension benefits upon redundancy. This is separate from your redundancy payment and depends on your pension scheme membership. Your pension benefits may be actuarially reduced if taken before your normal pension age. Speak to the NHS Pensions team or your HR department for specific pension projections.
What Notice Period Applies for NHS Redundancy?
Under Agenda for Change terms, the minimum notice period for redundancy depends on your length of service. Employees with less than 4 years' service receive 4 weeks' notice. Those with 4–12 years receive 1 week per year. Staff with 12 or more years' service receive 12 weeks' notice. Your trust may offer a payment in lieu of notice (PILON) instead.
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