This free NHS redundancy calculator helps you estimate your potential redundancy payment under NHS Agenda for Change (England) terms or UK statutory rules. Enter your details below to receive an instant, personalised estimate.
Whether you're facing potential redundancy, exploring your options, or simply planning ahead, this tool provides a clear breakdown of your entitlement including tax implications.
What you'll need: Your annual salary (or weekly pay), contracted hours, and length of service. For statutory calculations, you'll also need your date of birth and employment dates.
Calculator
Dates will automatically calculate complete years above.
UK statutory redundancy pay is the legal minimum your employer must pay. NHS staff usually receive more under contractual terms, but this shows your baseline entitlement.
PILON is separate from redundancy pay and usually taxable. It's not included in this calculation.
Results
NHS Contractual Redundancy (AfC England)
How It Works
Under Agenda for Change terms in England, you're entitled to one month's pay for each complete year of reckonable service, up to a maximum of 24 years.
"Month's pay" is calculated as the more beneficial of:
- 1/12 of your annual salary at termination, OR
- 4.35 times your weekly pay
For part-time staff, salary floors (£23,000) and caps (£80,000) are applied to the full-time equivalent salary, then pro-rated for your FTE. The maximum total payment is £160,000 (pro-rata for part-time).
Statutory redundancy pay is the legal minimum. It's calculated based on your age during each year of service:
- Under 22: Half a week's pay per year
- 22-40: One week's pay per year
- 41 or over: 1.5 weeks' pay per year
Maximum service counted is 20 years. Weekly pay is capped at £719 (2025/26). The maximum statutory payment is £21,570.
Common Mistakes to Avoid
- Using total service instead of reckonable service – Not all NHS employment counts. Breaks, secondments, or non-qualifying roles may affect your reckonable service.
- Forgetting part-time adjustments – If you work part-time, floors and caps are applied to your FTE salary, not your actual salary.
- Confusing statutory with contractual – NHS AfC terms are usually more generous. Make sure you know which scheme applies to you.
- Not accounting for prior redundancy – If you've received redundancy or MARS payments before, this may affect your entitlement.
Eligibility
NHS Contractual Redundancy (AfC England)
To qualify for NHS contractual redundancy pay, you must have:
- At least 2 years (104 weeks) of continuous service
- Been made redundant (your role is no longer required)
- Not unreasonably refused suitable alternative employment
Staff on Agenda for Change contracts in England are covered by Section 16 of the NHS Terms and Conditions of Service Handbook.
UK Statutory Redundancy
All employees in the UK qualify for statutory redundancy pay if they have:
- At least 2 years of continuous employment with their employer
- Been dismissed due to redundancy
Frequently Asked Questions
NHS staff on Agenda for Change contracts in England who have completed at least 2 years (104 weeks) of continuous service are eligible for contractual redundancy pay. This applies to both full-time and part-time employees. You must be formally declared redundant – meaning your post is no longer required – rather than leaving voluntarily or being dismissed for other reasons.
Continuous service is the unbroken period of employment with the NHS that determines your eligibility (minimum 2 years required). Reckonable service is the qualifying service used to calculate your redundancy payment. Reckonable service may differ from continuous service if you've had breaks, have had periods of non-qualifying employment, or have previously received redundancy pay. Your HR department can confirm your reckonable service period.
Yes, redundancy pay for part-time staff is calculated proportionally based on your contracted hours. The salary floor (£23,000) and cap (£80,000) are applied to the notional full-time equivalent (FTE) salary, then the resulting figure is pro-rated according to your FTE fraction. For example, if you work 18.75 hours (0.5 FTE), you would receive half the full-time equivalent payment, subject to the maximum cap of £160,000 also being pro-rated.
Your redundancy pay is based on your salary at the time of redundancy. For NHS AfC (England), a full-time equivalent salary floor of £23,000 and cap of £80,000 applies. If your FTE salary falls below the floor, it's raised to £23,000; if it exceeds the cap, it's limited to £80,000. The overall maximum payment is capped at £160,000 (pro-rated for part-time staff).
The NHS Agenda for Change terms limit redundancy pay calculations to a maximum of 24 complete years of reckonable service. This means even if you have 30 years of service, only 24 years count towards your payment. UK statutory redundancy has a 20-year cap. These limits were set as part of the respective employment terms and legislation to provide a reasonable upper limit on payments.
NHS AfC redundancy uses whichever method gives you the higher "month's pay": either 1/12 of your annual salary, or 4.35 times your weekly pay. The 4.35 multiplier accounts for the average weeks per month. In most cases, these produce similar results, but depending on how your pay is structured, one may be slightly higher. The calculator automatically uses the more beneficial method.
Genuine redundancy payments are tax-free up to £30,000. Any amount above this threshold may be subject to income tax. However, other termination payments such as payment in lieu of notice (PILON), accrued holiday pay, and bonuses are usually taxed as earnings regardless of this allowance. Your employer will deduct any tax due before paying you. For complex situations, seek advice from HMRC or a tax professional.
Breaks in service can affect both your continuous service (for eligibility) and reckonable service (for calculation). Short breaks may be disregarded, while longer breaks could restart your continuous service. The NHS has specific rules about which breaks count and how they're treated. Career breaks, maternity/paternity leave, and secondments each have different rules. Contact your HR department for clarification on how any breaks affect your personal entitlement.
Yes, individual NHS trusts can offer enhanced redundancy terms above the standard Agenda for Change provisions, though this is not guaranteed. Some trusts may offer additional payments, extended notice periods, or other benefits during restructuring programmes. Any enhancement would be at your employer's discretion and subject to local policy. The calculator shows the standard AfC entitlement; check with your HR department about any local enhancements.
NHS contractual redundancy under Agenda for Change (England) is generally more generous than statutory redundancy. NHS contractual pays one month's salary per year of service (up to 24 years), while statutory uses age-based weekly multipliers (0.5 to 1.5 weeks per year, up to 20 years) with a weekly pay cap of £719. NHS contractual also has salary floors and caps rather than just caps. As an NHS employee, you're entitled to the more favourable contractual terms.
Redundancy pay and NHS pension benefits are separate entitlements. You can usually receive both, though the timing and interaction between them can be complex. If you're aged 55 or over, you may be able to access your pension early on redundancy. However, taking early retirement on different terms (like voluntary early retirement) instead of redundancy may affect your redundancy payment entitlement. Always request a pension estimate from NHS Pensions and discuss options with your HR department before making decisions.
If you're facing redundancy, start by speaking to your NHS HR department to understand your specific entitlements and options. Join or contact your trade union (such as UNISON, RCN, or Unite) for representation and advice – they can support you through consultation processes. ACAS provides free, impartial advice on redundancy rights. Review any suitable alternative employment opportunities your trust offers. Consider seeking independent financial advice about managing your redundancy payment, and request a pension estimate if you're considering retirement options.