The simple explanation
If your contract says you have (for example) 12 weeks’ notice, PILON is a payment that covers those 12 weeks — paid as a lump sum — so your employment ends earlier.
Worked notice
You stay employed and get paid normally each pay cycle.
PILON
You get the notice value paid as a single lump sum (often taxed like earnings).
Why PILON can feel harsh
A lump sum landing in one period can make the deductions *feel* bigger. Your employer’s payroll may apply deductions in a way that looks brutal that month. Our calculator shows a stable estimate so you can sanity-check it.
Run PILON vs worked notice →What to check with HR
- • Is PILON contractual (in your contract) or discretionary?
- • Does PILON include benefits (car allowance, pension, etc.)?
- • Are you also owed holiday pay, bonus, commission, expenses?
- • What is the exact notice period used (weeks vs months)?
Next step
Turn it into a runway plan
The number is useless until you know when the money runs out.
Build monthly runway →