Termination Payment Calculator

Estimate the gross payments that may form part of an employee's final termination package.

Enter termination payments

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Result

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Enter the information and select Calculate.
How the calculation works
Complete the relevant fields to see the calculation and an explanation of the result.

Tax treatment

Termination payments can contain several different components. Unpaid wages, holiday pay, bonuses and PILON are generally earnings and are subject to tax and National Insurance. Certain redundancy and other qualifying termination awards can benefit from the £30,000 tax threshold, subject to the detailed rules.

The calculator deliberately separates earnings-type payments from redundancy/severance awards. It is not a tax calculator and does not calculate post-employment notice pay (PENP).

Sources: GOV.UK termination payments and tax and National Insurance guidance.

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This calculator provides general HR information and practical use. It does not constitute legal advice. Check current official guidance and the employee's contract, policy and applicable legislation before relying on the result.