NHS redundancy pay calculator — Section 16, all four nations

Redundancy lump sum

England · £32,073 a year · 10 years' service
Gross, before tax

Lump sum

£26,830.40

10 × £2,683.04

How that is worked out
What	Amount	Why
Years counted	10	complete years of reckonable service
A month's pay	£2,683.04	4.35 × a week's pay — the more beneficial of 16.7's two calculations

Reckonable service is your employer's to determine, and 16.6 excludes any service already counted towards an earlier redundancy payment or towards pension benefits you have taken.
Gross. The first £30,000 of a genuine redundancy payment is normally free of tax and National Insurance; the balance is not. That is not worked out here.

What England's notional earnings are worth

Paragraph 16.8 in the England section adds three things the other nations' section does not have: a notional full-time earnings floor of £23,000, a ceiling of £80,000, and an overall cap of £160,000. The same service, on the same salary, pays differently either side of the border.

Salary and service	England	Scotland, Wales, NI	Difference
£15,000, 10 years	£19,240.50	£12,548	+53%
£32,073, 10 years	£26,830.40	£26,830.40	0%
£100,000, 20 years	£133,846	£167,308	-20%

The floor helps low earners in England and the ceiling costs high earners there. In the middle — most of the Agenda for Change bands — the four nations agree exactly.

Three rules that quietly change the answer

Part-years are discarded entirely. Paragraph 16.9 does not round and does not apportion: eleven years and eleven months counts as eleven years, and the eleven months are simply gone. It is the only place in the calculation where anything is dropped.

A month's pay is "whichever is the more beneficial" of 4.35 times a week's pay, or a twelfth of annual salary (16.7). For a flat annual salary the weekly multiple is very slightly the larger — 4.35/52 against 1/12, about 0.4% — so that is the one that applies. The result above says which was used.

England's bounds are tested against full-time-equivalent pay, then pro-rated. Someone on £12,000 for half a week has a full-time equivalent of £24,000, which is above the floor — so the floor does not lift them. Testing the floor against actual pay instead would raise the payment wrongly.

What this does not cover

Early retirement on grounds of redundancy, and using the payment to buy out a pension reduction (16.10 onwards), are out of scope and will stay out: that is a pension decision, and this site does not give pension advice. Statutory redundancy pay is a separate and smaller scheme. Notice pay, untaken holiday and tax on the lump sum are not worked out here either — though the first £30,000 of a genuine redundancy payment is normally free of tax and National Insurance, and the balance is not.

Reckonable service is your employer's to determine. Paragraph 16.6 excludes service already counted towards an earlier redundancy payment, or towards pension benefits you have taken — so a long NHS career does not always count in full.