NHS MARS Calculator – Estimate Your Severance Payment

The Mutually Agreed Resignation Scheme (MARS) is a voluntary severance program used by NHS organisations to manage workforce changes. Under MARS, you and your employer mutually agree to end your employment in exchange for a financial settlement. Unlike compulsory redundancy, MARS is voluntary - you choose to apply and your employer must agree. The NHS MARS severance package typically includes a lump sum payment based on your salary and years of service, calculated according to your trust's specific scheme rules.

NHS MARS eligibility varies by organisation. Generally, you must be a permanent NHS employee with a certain minimum period of continuous service (often at least 1-2 years of reckonable service). MARS schemes are typically open to all staff groups including clinical and non-clinical roles. However, your employer has discretion to accept or reject applications based on operational needs. Some trusts may prioritise certain roles or bands, or may not offer MARS in critical shortage areas. Check with your HR department for your specific trust's MARS scheme guidance and eligibility criteria.

No, NHS redundancy vs MARS are different. Redundancy occurs when your job role is no longer needed and your employer must make you redundant (with statutory redundancy pay and legal protections). MARS is a voluntary arrangement where both you and your employer mutually agree to end employment. MARS payments are often more generous than statutory redundancy, but you have less legal protection since it's voluntary. With redundancy, you have rights such as consultation periods and the right to suitable alternative employment. With MARS, you're voluntarily resigning under agreed terms set out in a MARS settlement agreement NHS contract.

Partially. The first £30,000 of your NHS exit payment calculator result is typically tax-free under current UK tax rules. Any amount above the £30,000 threshold is subject to income tax at your marginal rate (20%, 40%, or 45% depending on your total income). This is the standard HMRC treatment for termination payments. However, National Insurance contributions (NICs) may also apply to amounts over £30,000. Tax rules can change, so it's important to get professional tax advice or check with HMRC about your specific NHS MARS tax free amount and how it will be reported. The tax estimate in this NHS staff severance calculator is for guidance only.

The MARS payment itself does not reduce your accrued NHS pension. However, leaving the NHS through MARS will end your active membership in the NHS Pension Scheme, so you'll stop building up further pension benefits. If you're close to retirement age, you may be able to access your NHS pension immediately (with or without early retirement reductions, depending on your age and scheme rules). Some staff combine MARS with NHS MARS early retirement to access their pension. It's crucial to contact NHS Pensions and consider independent financial advice before accepting a MARS offer, as the decision can significantly impact your long-term retirement income.

Your NHS reckonable service years are the continuous period of employment with NHS organisations that counts toward severance calculations. You can find this information on your payslip, in your ESR (Electronic Staff Record) profile, or by contacting your HR or payroll department. Reckonable service usually includes all continuous NHS employment across different trusts and health boards, but breaks in service may not count. Some trusts also include time with predecessor NHS bodies or related organisations. For an accurate figure to use in this UK NHS severance pay calculator, always check with your employer's HR team.

Yes, this NHS MARS payment calculator can be used by NHS staff across the UK including NHS Scotland, NHS Wales (Bwrdd Iechyd), and Health and Social Care in Northern Ireland. However, each country's health service and individual trusts/health boards set their own MARS scheme rules, eligibility, and payment formulas. The calculations provided here are based on typical schemes and may differ from your specific organisation's terms. Always verify your organisation's MARS scheme guidance and confirm calculations with your local HR team before relying on these estimates.

Each NHS organisation designs its own MARS scheme with unique formulas, caps, and eligibility rules. Your trust may use different calculation methods (e.g., weeks vs months of pay per service year), different minimum or maximum payments, lower or higher payment caps, or special rules for part-time staff or previous severance recipients. This calculator provides estimates based on common NHS MARS scheme examples but cannot account for every trust's specific policy. Additionally, your trust may include other factors such as notice period payments, annual leave payouts, or pension strain costs. Always use your HR department's official MARS estimate as the definitive figure.

If you previously received a redundancy or MARS payment from an NHS organisation and then returned to NHS employment, your new MARS payment may be reduced. Many NHS trusts apply a "recoupment" rule where previous severance payments are deducted from any new MARS calculation, or your reckonable service is adjusted to exclude the period covered by the earlier payment. The exact rules vary by trust and depend on how long ago you received the previous payment and whether you had a break in service. This calculator does not account for previous payments, so if this applies to you, consult your HR team for an accurate calculation.

This depends on your MARS settlement agreement. Some NHS trusts include clauses restricting re-employment with the same organisation or the wider NHS for a set period (e.g., 12 months or more). In some cases, if you return to NHS employment within a certain timeframe, you may be required to repay some or all of your MARS payment. Other trusts have no such restrictions. These terms are negotiable and will be clearly outlined in your settlement agreement. If you think you might want to return to NHS work in the future (including bank, locum, or part-time roles), clarify the re-employment restrictions with HR and consider legal advice before accepting a MARS offer.

Yes, most NHS MARS schemes include an NHS MARS payment cap. Common caps include a maximum of 12 months' salary or a fixed amount such as £80,000, whichever is lower. The cap ensures that higher earners or very long-serving staff do not receive disproportionately large payments. Some trusts may have higher or lower caps, or may apply different caps to different staff groups or bands. This calculator allows you to see when your payment hits the scheme cap. Check your trust's MARS scheme policy for the specific cap that applies to you.

Yes, it is highly recommended. A MARS offer is a significant decision that affects your employment, income, pension, and future career options. Independent financial advice can help you understand the impact on your NHS pension, tax position, and long-term financial security. Legal advice can ensure you understand the settlement agreement terms, including any restrictions on future employment, confidentiality clauses, or waiver of rights. Some employers contribute toward legal fees for settlement agreements. Taking professional advice ensures you make an informed decision and protects your interests before signing any MARS settlement agreement NHS contract.