As an NHS employee, facing redundancy can be a daunting experience. Understanding your entitlement to redundancy pay is crucial in planning your finances.
How much are NHS redundancy payments in England?
NHS redundancy payments are calculated based on two primary factors:
- Current annual salary: Including normal uplifts for unsocial hours work and High-Cost Area Supplements, excluding overtime payments.
- Reckonable service: The total length of time worked in the NHS without a break of more than 12 months between jobs.
Redundancy Calculator
To estimate your redundancy pay, follow these steps:
- Divide your annual salary by 12 to find your monthly salary.
- Multiply your monthly salary by the number of full years of service.
Example Calculation:
For a Band 6 nurse with a salary of £35,392 and 3 years and two months of service:
- £35,392 ÷ 12 = £2,949 (monthly salary)
- £2,949 x 3 (years of service) = £8,847 (approximate redundancy pay package)
Limitations
- Minimum salary calculation: £23,000 (impacts some Band 2 and Band 3 roles)
- Maximum salary calculation: £80,000 (impacts some Band 8c, 8d, and Band 9 roles)
- Maximum years of service: 24 years (any years beyond 24 do not increase the redundancy pay package)
Is redundancy pay taxable?
The first £30,000 of severance or redundancy pay is tax-free. Any amount beyond this figure is subject to tax.
Voluntary Redundancy Pay
The NHS voluntary severance scheme offers employees the opportunity to volunteer for redundancy. This scheme is usually delivered to reduce workforce numbers without resorting to compulsory redundancy.
Statutory Redundancy Pay
Statutory redundancy pay is the minimum amount an employer is legally required to pay an employee being made redundant.
Redundancy Tax Calculator UK
Use our redundancy calculator table to estimate your redundancy pay and tax implications.
Redundancy Calculator Table
| Reckonable Service | Monthly Salary | Redundancy Pay | Tax-Free Amount | Taxable Amount |
| 1 year | £2,949 | £2,949 | £2,949 | £0 |
| 2 years | £2,949 | £5,898 | £5,898 | £0 |
| 3 years | £2,949 | £8,847 | £8,847 | £0 |
| … | … | … | … | … |
| 24 years | £2,949 | £70,376 | £30,000 | £40,376 |
NHS Jobs
Understanding redundancy pay is essential for NHS employees. Knowing your entitlement can help you plan your finances and make informed career decisions.
What is the average redundancy package in the UK?
The average redundancy package in the UK varies depending on the industry and employer. However, the NHS redundancy pay scheme provides a comprehensive package based on years of service and salary.
How much money would I get if I was made redundant?
Use our redundancy calculator to estimate your redundancy pay based on your salary and years of service.
How is redundancy pay calculated in the UK?
Redundancy pay in the UK is calculated based on the employee’s weekly pay, length of service, and age.
What is the four-week rule redundancy?
The 4-week rule refers to the minimum notice period an employer must provide before making an employee redundant.
How do I calculate my NHS redundancy pay?
Use our redundancy calculator table or follow the steps outlined in this article to estimate your NHS redundancy pay.
What is the maximum redundancy for NHS?
The maximum redundancy pay for NHS employees is capped at 24 years of service.
What is the maximum NHS pension?
The maximum NHS pension varies depending on the employee’s scheme and service.
Is redundancy pay taxable in the UK?
The first £30,000 of redundancy pay is tax-free. Any amount beyond this figure is subject to tax.
What is the NHS voluntary severance scheme?
The NHS voluntary severance scheme offers employees the opportunity to volunteer for redundancy, usually to reduce workforce numbers without resorting to compulsory redundancy.
In conclusion, understanding NHS redundancy payments is crucial for employees facing redundancy.
By following this guide and using our redundancy calculator table, you can estimate your entitlement and plan your finances.