Payroll Legislation

How to Calculate Post Employment Notice Pay (PENP)?

Legislation

How to Calculate Post Employment Notice Pay (PENP)?

Due Date

April 2021

Summary

HMRC has made changes to the calculation for Post-Employment Notice Pay (PENP), specifying the calculation to be made where an employee’s pay period is defined in months, but their contractual notice period or post-employment notice period is not a whole number of months. From April 2021 this must be used in all cases and you may need to check compatibility if you have not already updated your systems to take this new calculation into account.

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