Redundancy Pay Calculator Australia
Under the National Employment Standards, redundancy pay in Australia is between 4 and 16 weeks of your base pay, depending on how long you have worked for your employer. On top of that you get notice (or pay instead of notice) and any unused annual leave. For 2026–27, the first $13,598 plus $6,801 for each complete year of service is tax-free if the redundancy is genuine.
Enter your salary, years of service and age below to see your redundancy pay, notice pay, leave payout and how much you keep after tax.
Redundancy pay calculator, 2026–27
How redundancy pay is worked out
Your minimum redundancy pay comes from the National Employment Standards (NES). It is based on your continuous service with the employer and your base rate of pay for ordinary hours. Base pay does not include overtime, penalty rates, allowances, bonuses or loadings.
The formula is simple: weeks of redundancy pay × your weekly base pay. If your salary is $85,000, your weekly base pay is $85,000 ÷ 52 = $1,634.62. With 6 years of service you get 11 weeks, which is about $17,981.
Redundancy pay table by years of service
| Continuous service | Weeks of redundancy pay | Example on $85,000 salary |
|---|---|---|
| 1 to less than 2 years | 4 weeks | $6,538 |
| 2 to less than 3 years | 6 weeks | $9,808 |
| 3 to less than 4 years | 7 weeks | $11,442 |
| 4 to less than 5 years | 8 weeks | $13,077 |
| 5 to less than 6 years | 10 weeks | $16,346 |
| 6 to less than 7 years | 11 weeks | $17,981 |
| 7 to less than 8 years | 13 weeks | $21,250 |
| 8 to less than 9 years | 14 weeks | $22,885 |
| 9 to less than 10 years | 16 weeks | $26,154 |
| 10 or more years | 12 weeks | $19,615 |
Less than one year of service means no NES redundancy pay. The scale drops from 16 weeks to 12 weeks at 10 years because most workers become entitled to long service leave by then. Your award, enterprise agreement or employment contract can give you more than these minimums, but never less.
Notice period, or pay instead of notice
Redundancy pay is separate from notice. Your employer must give you written notice or pay you for the notice period instead, which is called payment in lieu of notice.
| Continuous service | Minimum notice |
|---|---|
| 1 year or less | 1 week |
| More than 1 year to 3 years | 2 weeks |
| More than 3 years to 5 years | 3 weeks |
| More than 5 years | 4 weeks |
If you are 45 or older and have at least 2 years of continuous service, you get one extra week of notice. Small businesses must still give notice, even though they do not have to pay NES redundancy pay.
Who does not get redundancy pay
Not everyone whose job ends is entitled to NES redundancy pay. You usually miss out if:
- your employer had fewer than 15 employees when you were dismissed (small business exemption)
- you have worked there for less than 12 months
- you are a casual employee
- you were on a fixed-term contract or employed for a specific task or season that has ended
- you were dismissed for serious misconduct
- you are an apprentice or trainee employed only for the training period
- your employer found you other acceptable work and the Fair Work Commission reduced the amount
- your job ended because the business was transferred and the new employer kept you on with your service recognised
If you think you are entitled but your employer disagrees, ask for the reason in writing and check your award or agreement. The Fair Work Ombudsman can help resolve disputes for free.
What your final payout should include
| Payment | Included? | Super paid on it? |
|---|---|---|
| Wages up to your last day | Yes | Yes |
| Redundancy pay | Yes, if eligible | No |
| Payment in lieu of notice | Yes, if you do not work the notice period | Yes |
| Unused annual leave | Yes, always | No (except in some awards) |
| Annual leave loading | If your award, agreement or contract includes it | No |
| Unused long service leave | Yes, under your state or territory law | No |
| Unused personal or carer's leave | No, it is not paid out | – |
Check each line on your final payslip. A common mistake is leaving off the leave loading or paying notice at a lower rate than your normal pay.
How redundancy pay is taxed in 2026–27
A genuine redundancy payment is split into a tax-free part and a taxed part. The tax-free part is capped at a limit that grows with your years of service.
Tax-free limit = $13,598 + ($6,801 × complete years of service)
| Complete years of service | Tax-free limit (2026–27) |
|---|---|
| 1 year | $20,399 |
| 2 years | $27,200 |
| 3 years | $34,001 |
| 4 years | $40,802 |
| 5 years | $47,603 |
| 6 years | $54,404 |
| 8 years | $68,006 |
| 10 years | $81,608 |
| 15 years | $115,613 |
| 20 years | $149,618 |
Anything above the tax-free limit is an employment termination payment (ETP) and is taxed at a flat rate, including the Medicare levy:
- Under 60: 32% on the amount up to the $270,000 ETP cap
- 60 or older: 17% up to the cap
- Above the cap: 47%
Unused annual leave and long service leave paid because of a genuine redundancy are not part of the tax-free amount. They are taxed at a flat rate of up to 32%. If your normal tax rate is lower, the difference comes back when you lodge your tax return. Final wages are taxed like any normal pay.
Worked example
Mia is 47, earns $85,000 a year and has 6 years and 4 months of service with a large employer. She has 76 hours of unused annual leave with 17.5% loading, and her employer pays her notice instead of asking her to work it.
| Item | Amount |
|---|---|
| Redundancy pay (11 weeks) | $17,981 |
| Notice pay (4 weeks + 1 extra week for being over 45) | $8,173 |
| Unused annual leave with loading | $3,841 |
| Total before tax | $29,995 |
| Tax-free limit (6 years) | $54,404 |
| Tax on redundancy and notice | $0, it is all under the limit |
| Tax on annual leave (32%) | $1,229 |
| Estimated amount Mia receives | $28,766 |
Her redundancy and notice pay are fully tax-free because together they are below her $54,404 limit. Only the leave payout is taxed.
What makes a redundancy "genuine" for tax
The tax-free treatment only applies to a genuine redundancy. Generally that means:
- your job no longer exists, rather than you being replaced
- the decision was made by your employer, not by you
- you were dismissed before reaching Age Pension age (currently 67)
- the payment is more than you would have received if you had resigned or retired
- you and your employer are dealing at arm's length, and there is no agreement to re-employ you
Voluntary redundancy can still be genuine. If your employer asks for volunteers because positions are being cut and you accept, the tax-free limit usually still applies. Resigning, retiring, being dismissed for performance or misconduct, or a fixed-term contract simply ending are not redundancies.
After redundancy: what to check next
- Your final pay date: many awards require final pay within 7 days of your last day.
- Your super: make sure super has been paid on your wages and notice pay. Redundancy pay itself does not attract super.
- Your budget: if you plan to take a new job at a different salary, our take-home pay calculator shows what you will actually earn per week, fortnight or month.
- Your HELP debt: a large payout can push your income higher for the year. Taxable parts of the payout can count toward your HELP repayment income.
- Part-time work: if you move to a part-time role, our pro rata salary calculator shows your new salary.
- Your tax return: your employer will give you an ETP payment summary showing the tax-free and taxed parts.
Redundancy pay FAQs
How much redundancy pay will I get in Australia?
Under the NES you get 4 to 16 weeks of base pay depending on your years of service, for example 4 weeks after 1 year, 8 weeks after 4 years and 16 weeks after 9 years. It drops to 12 weeks after 10 years. Notice pay and unused annual leave are paid on top.
How much redundancy pay after 5 years?
With 5 to less than 6 years of continuous service you get 10 weeks of base pay. On an $85,000 salary that is about $16,346.
How much redundancy pay after 10 years?
The NES minimum is 12 weeks of base pay, because long service leave usually applies after 10 years. Your award or agreement may give more.
Is redundancy pay tax-free?
Part of it is. For 2026–27 the first $13,598 plus $6,801 for each complete year of service is tax-free if the redundancy is genuine. The rest is taxed at 32% if you are under 60 or 17% if you are 60 or older.
How is redundancy pay calculated?
Multiply your weekly base pay by the number of weeks on the NES scale for your years of service. Weekly base pay is your annual base salary divided by 52 and does not include overtime, allowances or bonuses.
Do casual employees get redundancy pay?
No. Casual employees are not entitled to NES redundancy pay, although some awards or agreements may provide it.
Do small businesses have to pay redundancy?
Businesses with fewer than 15 employees do not have to pay NES redundancy pay, but they must still give notice and pay out unused annual leave.
Is unused annual leave paid out on redundancy?
Yes. All unused annual leave must be paid out, plus leave loading if your award, agreement or contract provides it. Unused personal or sick leave is not paid out.
Do I get super on redundancy pay?
No. Super is not paid on redundancy pay or unused annual leave, but it is paid on your final wages and on payment in lieu of notice.
Can I get redundancy if I resign?
No. Redundancy only applies when your employer no longer needs your job done by anyone. If you resign, you get your final wages and unused annual leave, but no redundancy pay.