✓ Updated for 2026/27 — AfC Section 16

NHS Redundancy Calculator

Calculate your NHS redundancy payment. See statutory and enhanced redundancy pay based on your age, service, and salary.

Calculate Your Redundancy Payment

📋 Employment Profile ▼
Complete years of NHS service
Age affects multiplier calculation
📄 Redundancy Terms ▼
Re-joining within 4 weeks may affect entitlement
Estimated Gross Payout
£0.00
Base monthly pay £0
Service counted 0 Years
Multiplier applied 1x
Tax-Free Portion
First £30,000 is usually tax-free in the UK.
£30,000.00
Final Net Estimate
£0.00
✓ Calculation uses 2025/26 AfC formula.
⚠️ Important Notes:
• Redundancy pay up to £30,000 is tax-free
• Amount above £30,000 is subject to tax at your marginal rate
• Re-joining NHS within 4 weeks may affect payment
• Notice period pay and annual leave are additional
• This is an estimate - check with your HR department
How we calculated this:

Last updated: 17 March 2026 | Next update: April 2026 (pay scales)

Data sources: NHS Employers (Section 16) | GOV.UK (redundancy rights) | HMRC (tax on redundancy)

NHS Redundancy Pay Guide — Your Rights Under AfC

How NHS Redundancy Pay Works

NHS Agenda for Change staff receive enhanced redundancy pay — significantly more than statutory redundancy. This is protected under Section 16 of the NHS Terms and Conditions.

Statutory vs Enhanced Redundancy

Type Calculation Cap
Statutory Age-based multiplier × weekly pay £700/week, 20 years max
NHS Enhanced Statutory × 1.5 (minimum) No cap on weekly pay, 20 years max

Statutory Redundancy Calculation

Statutory redundancy is based on your age and length of service:

Statutory cap: £700/week maximum (even if you earn more)

Service cap: Maximum 20 years count

NHS Enhanced Redundancy

NHS staff receive at least 1.5× statutory redundancy. Some Trusts offer even more (up to 2× statutory). The NHS calculation:

Real Examples

Example 1: Band 5 Nurse (Age 35, 8 Years Service)

Salary: £32,073/year
Weekly pay: £616.79

Statutory calculation:
  Age 22-40 = 1 week per year
  8 years × 1 week × £616.79 = £4,934.32
  But statutory caps at £700/week
  So: 8 × £700 = £5,600

NHS Enhanced (1.5×):
  8 years × 1 week × £616.79 × 1.5 = £7,401.48

Total redundancy: £7,401.48 (tax-free)

Example 2: Band 7 Manager (Age 52, 15 Years Service)

Salary: £49,387/year
Weekly pay: £949.75

Statutory calculation:
  Age 41+ = 1.5 weeks per year
  15 years × 1.5 weeks × £700 (capped) = £15,750

NHS Enhanced (1.5×):
  15 years × 1.5 weeks × £949.75 × 1.5 = £33,091.41

Total redundancy: £33,091.41
Tax: £3,091.41 taxed (£33,091 - £30,000)
Net payment: ~£31,545

Notice Period

In addition to redundancy pay, you're entitled to notice (or pay in lieu):

Service Notice Period
Less than 1 month 1 week
1 month - 12 years 1 week per year (minimum 4 weeks)
12+ years 12 weeks

Notice pay is taxed normally (unlike redundancy pay up to £30k).

Annual Leave Entitlement

You must be paid for all accrued but untaken annual leave. This includes:

Annual leave pay is taxed as normal income.

When You Get Paid

Redundancy payments are typically made:

Tax Treatment

Redundancy Pay

Notice Pay and Annual Leave

Redundancy Rights & Protections

Consultation Period

Your Trust must:

Collective Consultation

If 20+ redundancies:

Protected Groups

Extra protection for:

Suitable Alternative Employment

Your Trust must offer you any suitable alternative roles. You can:

"Suitable" means:

What Happens to Your NHS Pension?

If you're close to retirement (within 2 years of NPA)

If you're younger

Challenging Redundancy

You can challenge redundancy if:

Time limits:

Benefits After Redundancy

Jobseeker's Allowance (JSA)

Universal Credit

Re-employment in NHS

If you're re-employed by NHS within 4 weeks:

If re-employed after 4 weeks: Keep redundancy payment, service automatically links.

Frequently Asked Questions

How much redundancy pay will I get? ▼
NHS enhanced redundancy is at least 1.5× statutory redundancy with no cap on weekly pay. It's based on your age, service (max 20 years), and actual weekly pay.
Is redundancy pay tax-free? ▼
The first £30,000 of redundancy pay is tax-free. Amounts above £30,000 are taxed as income. Notice pay and annual leave are always taxed.
How much notice will I get? ▼
Minimum 1 week per year of service (up to 12 weeks max). Your contract may specify longer notice periods. Notice pay is taxable.
Can I refuse an alternative job offer? ▼
Yes — if the role is genuinely unsuitable (different pay, location, hours), you can refuse and still claim redundancy. You have 4 weeks trial period to test suitability.
What happens to my NHS pension? ▼
Your pension is preserved (deferred) and continues growing with inflation (CPI + 1.5% annually). You claim it at State Pension age or earlier with reduction. Service automatically links if you return to NHS.
Can I claim benefits after redundancy? ▼
Not immediately if redundancy pay exceeds £16,000 (for JSA/Universal Credit). Redundancy pay counts as "capital" for 52 weeks and may reduce or prevent benefit claims.
What if I find another NHS job quickly? ▼
If re-employed within 4 weeks, you may have to repay redundancy pay (check your agreement). After 4 weeks, you keep redundancy and service links automatically.
Can I challenge my redundancy? ▼
Yes — if selection was unfair, consultation inadequate, or procedure not followed. Raise grievance within 3 months, then ACAS early conciliation, then employment tribunal if necessary.