NHS pension calculation

bobblebob

Been with the NHS for 14 years now and there is a strong possibility of redundancy within the near future. Been trying to work out what i would receive. The NHS redundancy agreement is this:

Staff who are made redundant should receive one month’s pay per year of reckonable service, with a maximum of 24 months’ pay (only full years of reckonable service can be counted when calculating redundancy pay as employment for part of a year should be disregarded).

A month’s pay, subject to a total annual earnings floor of £23,000 and cap of £80,000,!

Im on just less than the floor of 23k so redundancy would be worked out based on an annual earnings of 23k. So by my calculations i would get this:

23000 / 12 = £1916 to get monthly pay
1916 × 14 (number of years service) = £26,824

Seeing as the first 30k is tax free, is that what i would take home? Only question is do they base your monthly wage before or after tax?

Cheers

Comms69

bobblebob wrote: »

Been with the NHS for 14 years now and there is a strong possibility of redundancy within the near future. Been trying to work out what i would receive. The NHS redundancy agreement is this:



Im on just less than the floor of 23k so redundancy would be worked out based on an annual earnings of 23k. So by my calculations i would get this:

23000 / 12 = £1916 to get monthly pay
1916 × 14 (number of years service) = £26,824

Seeing as the first 30k is tax free, is that what i would take home? Only question is do they base your monthly wage before or after tax?

Cheers

That is roughly correct. It's tax free, so what do you think they'll base it on?

bobblebob

Well i assumed your monthly wage before tax but wasnt 100%

Comms69

bobblebob wrote: »

Well i assumed your monthly wage before tax but wasnt 100%

Correct.


Tax is a private issue between you and HMRC. You are paid, for the sake of this scenario, £23,000 per year.

bobblebob

Thanks for clearing that up

Comms69

bobblebob wrote: »

Thanks for clearing that up

No probs, been there myself.


It's a nice redundancy payment. Take a few weeks out but don't try to live on it. It will disappear double quick as you have so much more free time