{"slug":"uk-notice-pay","name":"UK Notice Pay Calculator","category":"earn","tags":["employment","income","tax"],"aliases":["notice pay calculator","calculate notice pay","loss of notice pay","statutory notice period","pay in lieu of notice","pilon calculator","pilon calculator uk","how much notice am i owed","garden leave pay","penp calculator"],"region":"GB","tagline":"How many weeks’ notice you’re owed, what it pays, and how much of it is taxed.","endpoint":"https://xearno.tools/api/v1/tools/uk-notice-pay","page":"https://xearno.tools/t/uk-notice-pay","description":"Your employer owes you notice when they end your job: one week if you have been there under two years, then one week for every full year, up to twelve. This works out your weeks and what they pay — and then the part people get wrong. Notice pay is not covered by the £30,000 tax-free allowance that shelters redundancy pay; if it is paid in lieu it is taxed as normal earnings. And if your employer has gone bust and the state pays instead, the amount is capped at £751 a week and reduced by benefits you claimed — or could have claimed, even if you never applied.","inputSchema":{"type":"object","properties":{"situation":{"description":"How is your notice being handled? The decisive input: it changes both the amount and the tax. Paid in lieu is taxed as earnings with no £30,000 shelter. The insolvency route is capped weekly and reduced by benefits.","type":"string","enum":["pilon","worked","insolvent"],"default":"pilon"},"years":{"description":"Complete years worked there Full years of continuous employment. Part years do not add a week — at 4 years 11 months you get 4 weeks, not 5.","type":"number","minimum":0,"maximum":50,"default":5},"weeklyPay":{"description":"Your weekly pay before tax (£) Gross, before tax. Monthly salary ÷ 4.333 if that is easier.","type":"number","minimum":0,"maximum":20000,"default":700},"contractWeeks":{"description":"Notice in your contract (weeks, if longer) Leave 0 to use the statutory minimum. Many contracts say one or three months — that is 4.3 or 13 weeks, and the longer of the two always wins.","type":"number","minimum":0,"maximum":52,"default":0},"nation":{"description":"Where you work Notice periods are the same everywhere in the UK. Only the insolvency weekly cap differs: £751 in Great Britain, £783 in Northern Ireland.","type":"string","enum":["gb","ni"],"default":"gb"},"benefits":{"description":"Benefits you got (or could have got) during notice (£ total) Insolvency claims only. Universal Credit or Jobseeker’s Allowance for the notice period is deducted — and it is deducted even if you never applied, unless you were refused and send the rejection letter.","type":"number","minimum":0,"maximum":100000,"default":0},"taxRate":{"description":"Your income tax rate Used to estimate the tax on your notice pay. National Insurance comes off on top of this and is not included in the estimate.","type":"string","enum":["0","20","40","45"],"default":"20"}},"required":[],"additionalProperties":false},"methodology":["Statutory notice (ERA 1996 s.86): nothing under one month of service; one week from one month to under two years; then one week for each complete year, capped at twelve weeks from twelve years onward. Northern Ireland is identical (ERO(NI) 1996 art.118). Only complete years count — 4 years 11 months gives 4 weeks.","Where your contract gives longer notice, the contract wins and this tool uses it. Note a side effect: once contractual notice exceeds the statutory minimum by a week or more, ERA s.87(4) switches off the ss.88–91 guarantee that you are paid a week’s pay during notice when sick or when no work is available, leaving your contract terms to govern.","Pay during notice from a solvent employer is your actual full pay. The week’s-pay cap in ERA s.227 applies to redundancy payments and certain tribunal awards, and notice pay is not on that list — a widely repeated error.","Tax: a payment in lieu of notice is charged as earnings under the post-employment notice pay rules (ITEPA 2003 s.402D) and is expressly excluded from the £30,000 termination exemption in s.403. Income tax and Class 1 National Insurance both apply. The estimate here applies your chosen income-tax rate to the whole amount and does not model National Insurance, the personal allowance, or the exact PENP formula, which prorates by pay period.","Insolvency: notice pay becomes a claim on the National Insurance Fund (ERA s.184), limited to the STATUTORY notice period, capped at £751 a week in Great Britain and £783 in Northern Ireland (ERA s.186 / SR 2026/57, from 6 April 2026). Because the claim is compensation, the duty to mitigate applies: earnings and state benefits for the notice period are deducted, including benefits you were entitled to but did not claim. Send a rejection letter to the Insolvency Service if a claim was refused.","An estimate, not advice. It does not cover dismissal for gross misconduct (where no notice is due), fixed-term contracts ending naturally, statutory maternity or sick pay interactions, or the exact PENP computation where pay periods are irregular."],"usage":"POST https://xearno.tools/api/v1/tools/uk-notice-pay with a JSON body matching inputSchema."}