NHS Redundancy Pay Calculator
Calculate 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
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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.
Key NHS Redundancy Pay Rules
These rules come from Agenda for Change Section 16, which sets NHS redundancy pay for all AfC staff.
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. Agenda for Change Section 16 counts service with different NHS employers as long as 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 £751 (2026/27).
Maximum 24 Months' Redundancy Pay
NHS redundancy pay is capped at 24 months' pay, because Agenda for Change Section 16 counts no more than 24 years of reckonable service. The £95,000 public sector exit payment cap introduced in 2020 was revoked in February 2021, so it does not reduce NHS redundancy pay. In England, Section 16 calculates redundancy pay on a salary of at least £23,000 and at most £80,000, so lower earners are paid on £23,000 and higher earners on no more than £80,000.
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 NHS Redundancy Pay?
NHS redundancy pay is one month's pay for every completed year of reckonable NHS service, paid under Agenda for Change Section 16 to staff with at least 2 years' continuous service, up to a maximum of 24 months' pay. For example, an employee earning £30,000 a year with 10 years' service would receive 10 months' pay, or £25,000. Staff on Agenda for Change contracts in NHS Scotland, NHS Wales and HSC Northern Ireland use the same formula, while local organisational change policies set the consultation process. The same Section 16 terms apply to the NHS England and integrated care board restructures behind many 2026 NHS redundancies, unless an employer runs its own voluntary scheme.
How Is NHS Redundancy Pay Calculated?
NHS redundancy pay is calculated by multiplying your completed years of reckonable service by one month's actual pay, counting at least 2 and at most 24 years.
- Count your completed years of continuous reckonable NHS service.
- Check you have at least 2 years, and cap the count at 24 years.
- Divide your annual salary by 12 to get one month's pay.
- Multiply your monthly pay by your years of service.
- Compare the result with statutory redundancy pay. You receive the higher amount.
How Much NHS Redundancy Pay Do You Get per Year of Service?
The table shows NHS redundancy pay for common lengths of service, using a £30,000 salary (£2,500 a month) as the example.
| Years of reckonable service | NHS redundancy pay (months' salary) | Example on a £30,000 salary | Statutory redundancy (weeks' pay, aged 41+) |
|---|---|---|---|
| 2 | 2 months | £5,000 | 3 weeks |
| 4 | 4 months | £10,000 | 6 weeks |
| 5 | 5 months | £12,500 | 7.5 weeks |
| 10 | 10 months | £25,000 | 15 weeks |
| 15 | 15 months | £37,500 | 22.5 weeks |
| 20 | 20 months | £50,000 | 30 weeks |
| 24 | 24 months (maximum) | £60,000 | 30 weeks (20-year limit) |
For your exact figure, enter your salary, age and service in the calculator at the top of this page.
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 £751 (2026/27) 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 Are the Types of NHS Redundancy?
There are three ways an NHS job can end with a severance payment: compulsory redundancy, voluntary redundancy and the Mutually Agreed Resignation Scheme (MARS). Each route is governed by Agenda for Change and your employer's organisational change policy.
What Is NHS Compulsory Redundancy?
NHS compulsory redundancy is when your employer ends your post because the work you do has stopped or reduced. It follows a period of consultation and a search for suitable alternative employment. The NHS can make you redundant, but only after consultation and only if no suitable alternative role is available. If you unreasonably refuse a suitable alternative post, you can lose your redundancy pay.
How Does NHS Voluntary Redundancy Work?
NHS voluntary redundancy is when you apply to leave during an organisational change and your employer agrees, usually paying the same Section 16 redundancy pay as compulsory redundancy. Some employers call this voluntary severance. Your employer can turn down an application, for example if your skills are still needed. The calculator above estimates voluntary redundancy pay too.
What Is the NHS Mutually Agreed Resignation Scheme?
The Mutually Agreed Resignation Scheme (MARS) is a local scheme where you agree to resign in return for a payment based on your length of service. A MARS payment is not redundancy pay, and both you and your employer must agree to it. Under NHS Employers guidance, MARS pays up to half a month's pay per year of reckonable service, capped at 12 months' pay. You cannot return to NHS employment for 6 months after you leave under MARS.
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.
How Does NHS Redundancy Pay Compare With Statutory Redundancy Pay?
NHS redundancy pay is a form of enhanced redundancy pay: it gives one month's actual salary per year of service up to 24 years, while statutory redundancy pay gives up to one and a half weeks' capped pay per year up to 20 years.
| Rule | NHS redundancy pay | Statutory redundancy pay |
|---|---|---|
| Who it applies to | Agenda for Change staff | All UK employees |
| Pay per year of service | 1 month's pay | 0.5, 1 or 1.5 weeks' pay by age |
| Maximum years counted | 24 | 20 |
| Pay used | Actual salary, with a £23,000 floor and £80,000 ceiling (England) | Weekly pay up to the legal cap |
| Weekly pay cap | None | £751 (2026/27) |
| Minimum service | 2 years' continuous NHS service | 2 years with the same employer |
How Is Statutory Redundancy Pay Calculated?
Statutory redundancy pay is calculated from your age, your years of service and your weekly pay, up to a legal weekly limit that changes every April.
- Under 22: half a week's pay per year
- 22 to 40: one week's pay per year
- 41 and over: one and a half weeks' pay per year
Statutory pay counts no more than 20 years of service and caps weekly pay at £751 (2026/27), which is why NHS Section 16 pay is higher for almost every NHS employee.
What Happens After NHS Redundancy?
After NHS redundancy, three things change: how your payment is taxed, whether you can take your NHS pension, and how your notice and untaken leave are paid.
Is NHS Redundancy Pay Taxable?
Most NHS redundancy pay is not taxable, because redundancy payments have their own tax-free allowance. NHS redundancy pay is tax-free up to £30,000; any amount above that is taxed as income, and pay in lieu of notice is taxed in full. 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. If you are close to your scheme's minimum pension age, read our guide to NHS early retirement to see how redundancy affects your pension. 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. Any untaken annual leave is paid with your final salary, or your employer may ask you to take it during your notice period. Use our NHS annual leave calculator to work out how many days you are owed.
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