NHS Redundancy Calculator 2026/27
Agenda for Change Section 16 redundancy pay, alongside your statutory floor. This is not a MARS calculator.
This is an employee-facing estimate of Agenda for Change Section 16 redundancy pay. NHSBSA's Excel tool is for employers, not staff, and the GOV.UK calculator is statutory only. If you have been offered the Mutually Agreed Resignation Scheme, use NHS voluntary redundancy and MARS instead.
Figures are correct to our knowledge against NHS Employers' published summary of Section 16 of the NHS Terms and Conditions Handbook, retrieved 19 August 2026, and results are indicative only. Read how our figures are checked.
Complete years of reckonable service only
If you work part time, enter your full-time equivalent salary, then pro-rate the result.
Source: NHS Terms and Conditions of Service Handbook, Section 16 (England) — redundancy, as summarised on NHS Employers explainer pages. This is an estimate, not legal advice, and does not cover the Mutually Agreed Resignation Scheme (MARS, Section 20), which is a different route from Section 16 redundancy.
How is Section 16 redundancy pay worked out?
Section 16 pays 1 month's pay per full year of reckonable NHS service, up to a maximum of 24 months, using an annual salary bounded between the scheme's published floor and cap. You need at least two years' reckonable service to qualify. A month's pay is the more beneficial of one twelfth of annual salary or 4.35 times a week's pay. See NHS redundancy pay for the full detail, including how this differs from MARS.
Statutory redundancy pay is separate and always tax-free: up to £22,530 (2026/27).
Worked examples
These full-time examples use the same calculation as the tool. They are indicative only and pending independent solicitor review. If you work part time, enter your full-time equivalent salary in the calculator, then pro-rate the result by your contracted hours.
| Example | Age | Service | Annual salary | Section 16 | Statutory floor |
|---|---|---|---|---|---|
| Below the salary floor | 45 | 5 years | £18,000 | £9,620 | £2,423 |
| 20 years' reckonable service | 50 | 20 years | £40,000 | £66,923 | £18,400 |
| Salary cap and 24-month maximum | 60 | 30 years | £90,000 | £160,615 | £22,155 |
Working out an NHS redundancy figure?
Where are you in the process?
Choose the closest option. We will take you to the relevant questions, with no obligation to proceed.
Frequently asked questions
How is NHS redundancy pay calculated?
Under Agenda for Change Section 16, qualifying staff receive 1 month's pay per complete year of reckonable NHS service, up to 24 months. You need at least two years' reckonable service. A month's pay is the more beneficial of one twelfth of annual salary or 4.35 times a week's pay, after the salary used in that calculation is bounded between £23,000 and £80,000. This calculator estimates that Section 16 figure next to your statutory floor. Figures are correct to our knowledge against NHS Employers' published summary, retrieved 19 August 2026, and are indicative only.
How much NHS redundancy pay will I get after 20 years' service?
Twenty complete years of reckonable service awards 20 months' pay under Section 16, unless a salary bound changes the month's-pay rate. An illustrative full-time example of age 50, 20 years and £40,000 salary is £66,923, against a statutory floor of £18,400. Your dates, pay and reckonable service can produce a different result. The table on this page uses the same calculation as the tool.
How can I calculate my NHS redundancy pay for 2026/27?
Enter your age at redundancy, complete years of reckonable NHS service and annual gross salary. The tool uses the Section 16 formula as summarised by NHS Employers, retrieved 19 August 2026, and the 2026/27 statutory rates for the floor. It does not ask for contact details to show an estimate. NHSBSA's Excel calculator is for employers, not staff, and the GOV.UK calculator is statutory only.
Is NHS redundancy pay tax-free?
The first £30,000 of qualifying redundancy and termination compensation is usually free of Income Tax. That is one combined threshold, not a separate allowance for each part of the package. Wages, holiday pay, bonus and notice pay are normally taxed as earnings even when they appear in the same settlement agreement. Ask payroll for a tax breakdown. See our guide to whether redundancy pay is taxable.
Does this calculator work for NHS voluntary redundancy?
Yes, if the exit is Section 16 redundancy. Volunteering changes who is selected, not the month's-pay formula. Compulsory Section 16 redundancy uses the same calculation. Compare your written offer with the estimate, including the leaving date and any settlement agreement conditions.
Does this calculate MARS?
No. The Mutually Agreed Resignation Scheme runs under Section 20 and is not a redundancy. NHS Employers states that directly. MARS does not use the Section 16 month's-pay formula, has no published national tariff, and does not carry the early-retirement-on-redundancy pension route. If you have been offered MARS, read NHS voluntary redundancy and MARS rather than using this calculator.
How do I use this if I work part time?
Section 16 applies the £23,000 floor and £80,000 cap to full-time equivalent salary, then pro-rates. This tool does not ask for contracted hours. Enter your full-time equivalent annual salary to see the full-time estimate, then multiply by your contracted hours as a fraction of full time. Do not enter your actual part-time salary: the calculator would treat that figure as FTE and could apply the floor incorrectly.
Does this cover NHS Scotland?
No. This calculator follows Agenda for Change Section 16 as summarised for England, with the same published structure used in Wales. NHS Scotland has its own Handbook. If you work for NHS Scotland, check that Handbook and your employer's written terms rather than relying on these figures.
What does a settlement agreement typically add on top of Section 16?
A settlement agreement can add compensation for the risk of a claim, an agreed reference, notice and holiday paid as part of the same document, and a contribution to your independent legal advice. Those items are not a second Section 16 figure and this page does not invent an amount for them. If your trust has given you an agreement to sign, we can review it. The fee is usually paid by the trust.
Related
This calculator gives an indicative estimate only and is not legal advice. Your actual entitlement depends on the facts of your case and your trust's current position.