I've received a redundancy offer — what does it mean?

Reviewed: September 2026

You don't need to understand every term before you start. Enter the figures from your offer letter — redundancy, PILON, holiday pay and anything else listed — and we'll estimate what you might actually receive.

What you'll need from your letter

• Redundancy or severance amount
• PILON / notice pay (if included)
• Holiday pay and any other payments

No account required. Add salary and year-to-date pay later if you want a more personalised tax estimate.

Before signing: settlement agreement checklist

Examples

Letter says "£25,000 including £8,000 PILON and £2,000 holiday"

Enter each line. The calculator shows estimated tax on PILON and holiday separately from redundancy compensation.

Two different offers on the table

Use compare mode to see estimated take-home difference — not a recommendation on which to accept.

Try the calculator with your figures →