PILON Calculator

Estimate the gross payment due instead of working a notice period.

Enter notice information

Enter the employee's normal weekly basic pay.
Enter the notice period to be paid.
Optional. Include regular contractual benefits that should continue during notice.

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.

PILON and tax

Payment in lieu of notice is payment for the basic pay the employee would have received during the notice period. Contractual benefits may also need to be considered depending on the contract.

GOV.UK confirms that PILON and the equivalent basic pay element are subject to tax and National Insurance. This calculator is a gross-payment estimate and does not attempt to calculate PAYE, employee NIC, employer NIC or pension deductions.

Source: GOV.UK termination payment 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.