What is a Settlement Agreement Calculator?

A Settlement Agreement Calculator is a free online tool that helps employees estimate how much they could receive in a settlement agreement from their employer. It considers factors like notice pay, redundancy, untaken holiday, and compensation.

How does the Settlement Agreement Calculator work?

You simply enter details such as your salary, notice period, and remaining holiday entitlement. The calculator then works out a realistic total based on standard UK employment law and typical settlement agreement components.

What should be included in a settlement agreement calculation?

A fair settlement agreement calculation typically includes payment in lieu of notice (PILON), statutory or enhanced redundancy pay, compensation for loss of employment, untaken holiday pay, and sometimes legal fees or other benefits.

Is the Settlement Agreement Calculator legally binding?

No, the calculator gives an estimate for guidance purposes only. Settlement agreements must be reviewed and signed with independent legal advice to be legally binding under UK law.

Can this calculator be used for redundancy settlements?

Yes, the Settlement Agreement Calculator is particularly useful for redundancy scenarios. It can help you understand how much you might be entitled to if your role is being made redundant.

Is the Settlement Agreement Calculator free to use?

Yes, our Settlement Agreement Calculator is completely free to use with no signup required. It’s designed to give you a quick and easy way to understand your potential payout.

Ewan

Settlement Agreement Calculator

Estimate potential settlement agreement values based on common components like redundancy pay, notice, and holidays. Select the relevant tax year for statutory rates. Designed for UK employment scenarios.

Select Tax Year for Rates/Caps

Affects Statutory Redundancy Pay cap and potentially other future capped elements.

Employee & Pay Details

Employee's Age (at leaving date)

Completed Years of Service

Max 20 years used for SRP calculation.

Gross Weekly Pay (£)

Statutory Redundancy Pay is capped at £719.00/week for the selected year (2025/26 (From Apr 6th 2025)).

Notice Period (Weeks)

Enter statutory or contractual notice, whichever applies.

Holiday Pay Details

Annual Holiday Entitlement (Days)

Include bank holidays if part of entitlement.

Holidays Already Taken (Days)

Settlement Specifics

Is this a redundancy situation? (Affects SRP)

Discretionary / Ex Gratia Payment (£) (Optional)

Any additional amount offered beyond contractual/statutory minimums.

About This Calculator

This tool helps employers and employees estimate the potential value of a settlement agreement in the UK. It calculates common components based on the details you provide and the selected tax year's statutory rates.

Key Components Estimated:

•Statutory Redundancy Pay (SRP): If applicable (based on age, service, pay - capped).
•Notice Pay: Pay during the notice period (statutory or contractual).
•Accrued Holiday Pay: Payment for untaken holidays.
•Ex Gratia / Discretionary Payment: Additional amount offered by the employer.

Fill in the details accurately and select the correct tax year for the best estimate. Remember that final settlement amounts can be subject to negotiation.

Statutory Caps for 2025/26 (From Apr 6th 2025):

Weekly Pay for SRP: £719.00
Years of Service for SRP: 20 years
Tax-Free Threshold (SRP/Ex Gratia): £30,000.00

These figures are based on the selected tax year. Always verify with official gov.uk sources for the applicable period.

Understanding Settlement Agreements

A settlement agreement (previously 'compromise agreement') is a legally binding contract where an employee agrees not to pursue certain employment claims against their employer, usually in return for a sum of money.

Common Scenarios:

•Redundancy situations
•Resolving workplace disputes
•Mutual agreement to end employment

Employees must receive independent legal advice (often paid for by the employer) before signing a settlement agreement for it to be valid.

For official guidance, visit:

Frequently Asked Questions

What is a Settlement Agreement Calculator?: A Settlement Agreement Calculator is a free online tool that helps employees estimate how much they could receive in a settlement agreement from their employer. It considers factors like notice pay, redundancy, untaken holiday, and compensation.
How does the Settlement Agreement Calculator work?: You simply enter details such as your salary, notice period, and remaining holiday entitlement. The calculator then works out a realistic total based on standard UK employment law and typical settlement agreement components.
What should be included in a settlement agreement calculation?: A fair settlement agreement calculation typically includes payment in lieu of notice (PILON), statutory or enhanced redundancy pay, compensation for loss of employment, untaken holiday pay, and sometimes legal fees or other benefits.
Is the Settlement Agreement Calculator legally binding?: No, the calculator gives an estimate for guidance purposes only. Settlement agreements must be reviewed and signed with independent legal advice to be legally binding under UK law.
Can this calculator be used for redundancy settlements?: Yes, the Settlement Agreement Calculator is particularly useful for redundancy scenarios. It can help you understand how much you might be entitled to if your role is being made redundant.
Is the Settlement Agreement Calculator free to use?: Yes, our Settlement Agreement Calculator is completely free to use with no signup required. It’s designed to give you a quick and easy way to understand your potential payout.