Final Pay When Leaving Job Calculator
Your Final Pay Breakdown
What This Means:
How Final Pay is Calculated
Your final pay when leaving a job in the UK typically includes several components. The exact amount depends on your contract terms, length of service, and circumstances of leaving.
Components of Final Pay
- Outstanding wages: Payment for work completed up to your leaving date
- Accrued holiday pay: Payment for unused annual leave entitlement
- Notice pay: Payment during notice period or payment in lieu of notice
- Overtime or bonuses: Any contractual payments owed
- Expenses: Reimbursement for legitimate business expenses
Holiday Pay Entitlement
All workers in the UK are entitled to 5.6 weeks’ paid holiday per year (pro-rated for part-time workers). This can include bank holidays if specified in your contract.
Important: If you’ve taken more holiday than you’ve accrued, your employer may deduct the excess from your final pay, but only if this is stated in your contract.
Holiday Pay Calculation
Holiday pay is calculated by working out how many days you’ve earned but not taken:
- Calculate days earned: (Days worked ÷ 365) × Annual entitlement
- Subtract days already taken
- Multiply remaining days by daily rate
Notice Periods and Pay
Your notice period depends on your contract and length of service:
Statutory Minimum Notice
- Less than 1 month employment: No statutory notice required
- 1 month to 2 years: 1 week’s notice
- 2+ years: 1 week for each complete year (maximum 12 weeks)
Contract Terms: Your contract may specify longer notice periods than the statutory minimum. The longer period applies.
Payment in Lieu of Notice (PILON)
Employers may choose to pay you instead of requiring you to work your notice period. This must be allowed in your contract or agreed upon mutually.
Frequently Asked Questions
You should receive your final pay on your normal payday, or sooner if you’re being paid in lieu of notice. If there are deductions to calculate (like excess holiday taken), payment may be delayed but should be made as soon as possible.
Employers can only make deductions if:
- It’s required by law (like tax and National Insurance)
- It’s specifically allowed in your contract
- You’ve given written consent
- It’s to recover overpaid wages or expenses
Even if dismissed for gross misconduct, you’re still entitled to:
- Wages for work completed
- Accrued holiday pay
- Any contractual benefits earned
However, you wouldn’t receive notice pay in this situation.
If a bank holiday falls during your notice period and you normally get paid for bank holidays, then yes, you should receive payment. Check your contract for specific terms about bank holiday pay.
Pension contributions should continue to be deducted from your final pay as normal. Your employer should provide information about transferring or maintaining your pension after leaving.
Yes, you must be paid for any accrued but unused holiday when you leave employment. This is a legal requirement and applies even if you’re dismissed.
What to Do if There’s a Problem
If you believe your final pay is incorrect:
- Check your payslip: Review all calculations and deductions
- Speak to your employer: Raise the issue directly with HR or payroll
- Put it in writing: Follow up verbal discussions with written requests
- Keep records: Save all correspondence and documentation
- Seek advice: Contact ACAS (Advisory, Conciliation and Arbitration Service) for free guidance
- Consider legal action: As a last resort, you may need to make a claim to an employment tribunal
Time Limits: You generally have 3 months from your last day of employment to make a claim to an employment tribunal for unpaid wages.
Tax and National Insurance
Your final pay is subject to the same tax and National Insurance deductions as your regular pay. However, you may be entitled to a tax refund if you don’t work for the rest of the tax year.
P45 Form: Your employer must give you a P45 form when you leave, showing your total pay and tax deductions for the tax year. You’ll need this for your next job or to claim any tax refund.