UrbiTools

Notice Pay Calculator & PILON Calculator UK

Our free notice pay calculator (also called a PILON calculator, or payment in lieu of notice calculator) estimates your PILON from your salary and notice entitlement — statutory vs contractual compared automatically — and shows the income tax you'll actually pay on it.

How to use this calculator

  1. Gather your detailsYou'll need your gross annual salary, your complete years of service, your contractual notice period in weeks (check your contract — leave blank if you only get the statutory minimum), and how many notice weeks you've already worked.
  2. Enter them aboveThe calculator compares your statutory notice (1 week per year, max 12) against your contractual notice and uses whichever is higher — that's the law. Pick your marginal tax rate for the net estimate.
  3. Read your resultsYou'll see your gross PILON, the income tax due, and an estimated net figure — plus a clear warning that PILON is fully taxable as earnings (no £30,000 allowance) and how it can affect a redundancy calculation.

Calculate your notice pay

Before tax. Unlike redundancy pay, notice pay has no weekly cap.
Statutory minimum: 1 week per year, max 12 weeks.

How the PILON calculator works

Your notice entitlement is the higher of the statutory minimum (1 week per complete year of service, up to 12) and your contractual notice. PILON is that number of unworked weeks multiplied by your weekly pay (annual salary ÷ 52). There is no £751-style cap, and the whole payment is taxable as earnings.

Worked example: on a £36,400 salary (£700 a week) with 4 years' service and 8 weeks' contractual notice, the contractual period is higher than the 4 statutory weeks. 8 × £700 = £5,600 gross; at a 20% marginal rate that is roughly £1,120 income tax, before National Insurance. Read the full notice pay & PILON guide for the rules.

Notice pay questions

What is PILON (payment in lieu of notice)?
PILON is when your employer ends your employment immediately but pays you what you would have earned during your notice period, instead of making you work it. It's common in redundancies and dismissals.
How is notice pay calculated?
Multiply your uncapped weekly pay (annual salary ÷ 52) by your unworked notice weeks. Your notice entitlement is the higher of the statutory minimum (1 week per complete year of service, max 12) and your contractual notice period.
Is PILON taxed?
Yes — fully. Since 6 April 2018, all payments in lieu of notice are subject to income tax and National Insurance as earnings. The £30,000 tax-free termination allowance does not apply to PILON, unlike genuine redundancy pay.
Can PILON affect my redundancy pay?
It can. Under Acas guidance, PILON can extend your employment "relevant date" — the date used to count your years of service — which may add a whole extra year to your redundancy calculation. Run both our redundancy pay calculator and this PILON calculator to see the full picture.
Is there a cap on notice pay like redundancy pay?
No. Unlike statutory redundancy pay (capped at £751/week), notice pay uses your actual weekly earnings with no cap.

Guide & related calculators

Guide: Notice Pay & PILON ExplainedStatutory vs contractual notice, how PILON is taxed, and the redundancy link.Redundancy Pay CalculatorStatutory redundancy pay with 2026/27 rates and year-by-year breakdown.Paternity Pay CalculatorCheck paternity leave & pay eligibility and 2026/27 rates.

Sources & official guidance

Estimate only — not legal or financial advice. See our disclaimer.