NHS Redundancy Calculator (Estimate)
Use this tool to estimate contractual NHS redundancy based on one month’s pay for each complete year of reckonable service, capped at 24 months.
Important: this calculator provides a guide only. Local policy, continuity rules, exclusions, and formal HR calculations can change the final amount.
How this NHS redundancy calculator works
This page is built to give a practical estimate for NHS staff who want a quick idea of what redundancy compensation might look like before a formal HR meeting. In many NHS settings (including Agenda for Change arrangements), contractual redundancy is often calculated as one month’s pay per complete year of reckonable service, with an upper limit of 24 months’ pay.
The calculator uses four inputs:
- Your annual basic salary
- Your complete years of reckonable service
- Your contracted weekly hours
- Your local full-time weekly hours (commonly 37.5)
If you work part-time, your estimate is adjusted pro-rata through your hours ratio.
Core formula used
Step 1: Calculate monthly pay
Monthly pay is estimated as annual salary divided by 12, then adjusted by your part-time ratio:
Monthly pay = (Annual salary ÷ 12) × (Contracted hours ÷ Full-time hours)
Step 2: Apply service cap
Only complete years are counted, and service is capped at 24 years for this estimate:
Counted service = min(Complete years, 24)
Step 3: Calculate estimated redundancy
Estimated redundancy = Monthly pay × Counted service
Worked example
Suppose your details are:
- Annual basic salary: £42,000
- Service: 10 complete years
- Contracted hours: 30
- Full-time hours: 37.5
Your part-time ratio is 30 ÷ 37.5 = 0.8. Monthly pay estimate: £42,000 ÷ 12 × 0.8 = £2,800. Redundancy estimate: £2,800 × 10 = £28,000.
Tax and pension notes
Many genuine redundancy payments can be paid tax-free up to the applicable limit (commonly referenced as £30,000 in UK guidance), with amounts above that potentially taxable. Pension implications can also vary depending on scheme rules, age, and whether retirement options are available.
Because tax and pension treatment can materially affect your final position, it is sensible to check:
- Your Trust or Board HR policy documents
- Your union representative guidance
- Professional tax advice for larger settlements
What can change your final figure?
This NHS redundancy calculator is intentionally simple, but real-world cases can include additional checks. Your formal figure may differ because of:
- Rules on what counts as reckonable service
- Breaks in service and continuity provisions
- Any previous NHS redundancy payment history
- Locally agreed terms and national circular updates
- Whether suitable alternative employment is offered or accepted
Quick checklist before your consultation
- Bring your latest payslip and contract details
- Confirm your recognised service date with HR
- Ask how part-time history is treated in your case
- Request a written breakdown of any offer
- Check deadlines for appeal, redeployment, or trial periods
Frequently asked questions
Is this an official NHS redundancy calculator?
No. It is an independent estimation tool to help with planning. Always rely on formal calculations issued by your employer.
Why does the estimate use complete years only?
Contractual redundancy frameworks commonly refer to complete years of service. Partial years are often not counted in the same way, though local interpretation can vary.
What if I have less than two years of service?
In many settings, contractual redundancy entitlement requires minimum service. This tool flags that scenario so you can verify your exact eligibility with HR.
Can this replace legal advice?
No. It is educational content, not legal advice. For disputes or complex circumstances, seek union or legal support.