PILON Calculator

Work out your payment in lieu of notice — what you are owed for notice you will not be working, and what you will actually take home.

Your notice details

PILON is not subject to the statutory weekly cap — it uses your actual pay.

Leave at 0 if you are leaving immediately.

Ready to calculate

Enter your pay and notice details to work out your PILON.

What is PILON?

Payment in lieu of notice is money paid instead of requiring you to work your notice period. Your employment ends straight away and you receive the pay you would have earned during notice as a lump sum.

When it applies

Usually when your contract contains a PILON clause. Without one, your employer needs your agreement to end the contract early.

How it is taxed

Since April 2018, all PILON is taxable as earnings under the PENP rules, whether or not there is a contractual clause.

Effect on redundancy pay

None. PILON is paid on top of your statutory redundancy pay, not instead of it.

Working out the whole package?

PILON is one component. The tax calculator combines it with your redundancy pay, holiday pay and any ex-gratia payment to estimate your total take-home.

Tax shown is a flat-rate estimate for illustration. Your actual deductions depend on your tax code and total earnings for the year. Not legal or tax advice.