Employment Settlement Agreement Calculator UK
If you have been dismissed and have at least two years of continuous employment, you may have an unfair dismissal claim under ERA 1996 s.94. From April 2026, the compensatory award cap is £123,543 (or 52 weeks' pay, whichever is lower). The first £30,000 of any settlement is tax-free. Enter your details to see your basic award and whether your offer is in the typical range.
From a quick check to a vetted solicitor on the phone. No cost to you.
Enter your salary, length of service, and the offer on the table. You will get an instant read on whether it sits below the typical range, within range, or above it. That is the information you need before you reply to anything.
A solicitor who handles settlement agreements regularly knows what employers will move on and by how much. Matching launches shortly. Add your details and we will notify you the moment it goes live.
Your employer covers the cost of your legal advice. A solicitor reviews your offer, tells you what is negotiable, and handles the conversation with your employer's legal team. You do not pay.
Most employees sign the first number they receive without questioning it. That number is rarely the final one.
Enter your salary, length of service, and your offer to see your estimated net take-home after tax. PILON and the £30,000 exemption are calculated separately.
What is PILON?
PILON stands for Payment in Lieu of Notice. It is the lump sum your employer pays instead of letting you work out your notice period. Unlike redundancy pay, PILON is always taxed as normal income.
Payment in lieu of notice is treated as earnings under ITEPA 2003 s.402D. It is subject to income tax and National Insurance at your normal rate, regardless of what your agreement calls it.
Statutory redundancy pay and other termination payments up to £30,000 are exempt from income tax under ITEPA 2003 s.403. The portion above £30,000 is taxable at your marginal rate.
Most calculators show a gross figure. This one calculates PILON and redundancy pay separately, applies the correct tax treatment to each, and shows your estimated net take-home figure.
Most settlement calculators online are built by law firms trying to capture your case. Ours is independent. Solicitors on our panel pay a small introduction fee per qualified lead. We have no single firm to push you towards, and we curate the panel for quality, not volume.
Six things almost every employee wants to know before clicking “calculate.”
No. Your employer is required by UK law to cover your legal fees for this process, typically £350 to £750. You pay nothing. This means you can choose a specialist who will genuinely advise you, not just whoever is cheapest.
Yes. Under Section 203 of the Employment Rights Act 1996, a settlement agreement is only legally binding if you have received independent legal advice from a qualified, insured solicitor. You cannot waive your rights without it.
It depends on which part of your payment is being taxed. Statutory redundancy pay and other termination payments up to £30,000 are tax-free under ITEPA 2003 s.403. Payment in lieu of notice (PILON) is always fully taxable as earnings under s.402D, regardless of what it is called in your agreement. The calculator separates these two elements and shows your estimated net take-home figure after tax.
The calculator gives a general estimate based on UK statutory rates and typical UK settlement market data. It is not legal advice. Your circumstances may justify substantially more or less, and only a solicitor reviewing your contract and reason for leaving can tell you.
The calculator is live and free to use today. The solicitor matching service is launching shortly. When live, panel solicitors will commit to responding within 24 hours of an introduction, often the same business day.
Many employees do successfully negotiate more once a solicitor reviews their circumstances. A specialist will assess whether factors like length of service, discrimination, whistleblowing, or contract breaches justify a higher offer.
Only with vetted SRA-regulated solicitors you opt in to be introduced to once matching launches. Never with employers, recruiters, or third parties. You can withdraw consent at any point.
Most settlement calculators are built by law firms. The goal of those calculators is to capture your details so that firm can take on your case. Our calculator is run by an independent platform with no firm to promote. The estimate you get reflects your actual situation, not what a firm wants you to believe.
Updated every April. The calculator always uses the current rates.
| Figure | 2025/26 | 2026/27 |
|---|---|---|
| Weekly pay cap (GB), basic award | £719 | £751 |
| Maximum basic award (GB) | £21,570 | £22,530 |
| Compensatory award cap (GB) | £118,223 | £123,543 |
| Tax-free threshold (termination payments) | £30,000 | £30,000 |
| Qualifying service for unfair dismissal | 2 years | 2 years |
Sources: ERA 1996 s.227 (GB cap), ERO(NI) 1996 (NI cap), ITEPA 2003 s.403 (£30,000 threshold). Figures effective 6 April 2026.
Figures reflect the Employment Rights (Increase of Limits) Order 2026 (SI 2026/310) and Employment Rights (Increase of Limits) Order (Northern Ireland) 2026 (SR 2026/57), in force from 6 April 2026. Last reviewed: May 2026.
Get your free estimate in under two minutes and find out where yours stands.