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NHS redundancy calculator

NHS redundancy (Handbook §16, England) is contractual and much stronger than the statutory scheme: one month's pay per complete year of reckonable service, from a 2-year minimum up to 24 months' pay.

NHS contractual redundancy (§16.8)

2026/27

1 month's pay × years of service (max 24)

Salary counted no lower than £23,000 and no higher than £80,000 (FTE); no payment above £160,000. The statutory payment is offset within it, not added on top.

Your service and pay

Full-time equivalent if you're part time — the result is then pro-rated by your hours.
Continuous NHS employment plus earlier NHS service with breaks of ≤12 months (§16.5).

How §16 defines a “month's pay”

Whichever is better for you: 4.35 × a week's pay (Employment Rights Act definition) or 1/12 of annual salary at termination (§16.7). The calculator uses the better figure automatically. Salaries below £23,000 are treated as £23,000 — a floor that protects lower bands — and anything above £80,000 counts as £80,000.

Scotland has its own Section 16 with different caps; Wales and NI apply variants too. This calculator implements the England text — check your national terms if you're elsewhere.

Common questions

Is the statutory redundancy payment added on top?
No — the statutory entitlement is offset against the NHS payment (§16.1): you receive the NHS figure, which is nearly always the larger, with the tax-free treatment applying to the first £30,000.
What if I'm over minimum pension age?
NHS Pension Scheme members made redundant at 55+ (or protected minimum age) can instead use the redundancy sum to buy out the early-retirement reduction and draw their pension immediately (§16.10–16.15) — often worth more than cash. Get a pensions estimate before choosing.
Does a new NHS job cancel the payment?
Yes — accept an NHS offer that starts within 4 weeks of termination and no redundancy payment is due (§16.16). Suitable-alternative-employment rules also apply during consultation.
Are fractions of a year counted?
No — §16.9 counts complete years only. 9 years 11 months is 9 months' pay, so termination dates near an anniversary matter.

Related calculators & guides

Sources for the figures on this page

Last checked 3 July 2026

How we keep these current: methodology & update policy.