PILON calculator UK
Check your redundancy and notice pay before accepting an offer.
If your employer is paying you in lieu of notice, use the calculator to estimate your statutory redundancy pay, notice pay, offer shortfall and key claim deadlines.
PILON and redundancy
Notice pay and redundancy pay are separate.
PILON is payment in lieu of notice. It usually means your employment ends without you working your notice period, but your employer pays you for that notice period.
Statutory redundancy pay is calculated separately. It depends on your age, full years of continuous service, gross weekly pay and the statutory weekly pay cap. Mixing PILON and redundancy pay together can make an offer hard to read, especially if the employer has not shown a breakdown.
If you have been asked to sign a settlement agreement, do not sign it without independent legal advice from a qualified adviser.
1. Enter your employment dates
Start date, last day of employment and date of birth let the calculator apply the statutory age bands.
2. Add your salary and offer
Include your salary, redundancy offer, notice period and whether you received PILON.
3. Review your free result
See your redundancy figure, possible notice pay, offer gap and deadline dates before paying anything.
Common PILON questions
Quick answers before you calculate
What is PILON?
PILON means payment in lieu of notice. Instead of working your notice period, your employment ends and your employer pays you for the notice period.
Does PILON count as redundancy pay?
No. PILON is notice pay, not redundancy pay. Statutory redundancy pay is calculated separately using your age, length of service and weekly pay, subject to the statutory cap.
Is PILON taxable?
Yes. PILON is usually taxed as normal earnings. Statutory redundancy pay and eligible enhanced redundancy payments are treated differently, with the first 30000 pounds generally tax-free.
Can I be owed both redundancy pay and PILON?
Yes. If you qualify for statutory redundancy pay and your employer does not require you to work your notice, you may be owed both redundancy pay and notice pay.
Free to check
Check your own redundancy and PILON figures.
The calculator gives you a free preview. If you need to push back, you can unlock a personalised letter pack for one payment of £12.
Start the free calculation