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PILON vs Worked Notice • 2026-ready layout

Notice Pay Calculator

Notice pay is often the biggest part of your redundancy package — and it’s usually taxed like earnings. Compare worked notice vs PILON and see a clear estimate of take-home.

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Your Notice Pay

Quick inputs → clean breakdown.

£

Used to estimate weekly pay as salary ÷ 52 (unless you enter weekly pay).

Units

If you choose months, we estimate 1 month ≈ 4.333 weeks.

This impacts how the “simple tax estimate” is shown.

This helps show the “lump sum shock” when PILON lands in one pay period.

Common questions

What is PILON (payment in lieu of notice)?

PILON is when your employer pays your notice period as a lump sum instead of you working it. It is usually taxed like normal earnings.

Is notice pay taxed in the UK?

In most cases, notice pay is taxed and subject to National Insurance like normal earnings. This is different from statutory redundancy pay which may be tax-free up to a threshold in some situations.

Why does PILON sometimes feel smaller than expected?

Because a lump sum can push more of your income into higher tax bands for that pay period (and NI can bite). Worked notice is usually spread across pay cycles, which can feel more predictable.