Question 1

How is NHS redundancy calculated?

Accepted Answer

NHS redundancy under AfC is calculated as one month's pay per year of reckonable service, up to a maximum of 24 months' pay. The calculation uses your actual monthly salary, not the statutory weekly cap.

Question 2

Is NHS redundancy pay taxable?

Accepted Answer

Redundancy payments up to £30,000 are tax-free. Amounts above £30,000 are subject to income tax but not National Insurance.

Question 3

What counts as continuous service for NHS redundancy?

Accepted Answer

Continuous service includes all NHS employment without a break of more than 12 months. Time spent in different NHS trusts, GP practices and other NHS bodies all counts, provided there is no significant gap between roles.

Question 4

How long does it take to receive my redundancy payment?

Accepted Answer

Most NHS trusts aim to process redundancy payments within your final payroll run or the one immediately after your leaving date. In practice, you should receive payment within 4-6 weeks of your last day of service.

Question 5

Can I appeal against NHS redundancy?

Accepted Answer

Yes, you have the right to appeal against your selection for redundancy. You should submit your appeal in writing to your trust's HR department, usually within 10 working days of being notified, and a hearing will be arranged.

Question 6

Can I take early retirement instead of redundancy?

Accepted Answer

If you are aged 55 or over and a member of the NHS Pension Scheme, you may be able to take voluntary early retirement as an alternative to redundancy. This can sometimes be more financially advantageous, so it is worth asking your HR department to run both sets of figures for comparison.

Question 7

Is NHS redundancy voluntary or compulsory?

Accepted Answer

NHS trusts typically invite voluntary redundancy applications first before moving to compulsory redundancy. Voluntary redundancy may come with enhanced terms, so it is worth expressing an interest early if you are considering it.

Question 8

What benefits am I entitled to during my notice period?

Accepted Answer

During your redundancy notice period you remain a full employee, so you continue to receive your normal salary, pension contributions and annual leave accrual. You are also entitled to reasonable paid time off to look for new work or arrange training.

NHS Redundancy Calculator 2026/27

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