Redundancy Pay Calculator
Find out your NES redundancy pay — and exactly how much of it is tax-free. Enter your base weekly pay and how long you’ve worked there, and we’ll apply the National Employment Standards scale and the ATO’s tax-free limit for FY2026-27.
Calculate your redundancy pay
What counts as a genuine redundancy?
A redundancy is genuine when your employer no longer needs your job to be done by anyone, usually because of restructuring, new technology or a downturn. It isn’t genuine if the real reason is performance or conduct, or if your employer could reasonably have moved you into another suitable role and you were never offered it.
The NES redundancy scale
Your entitlement is based on completed years of service. Part-years don’t count.
| Completed service | Redundancy pay |
|---|---|
| Less than 1 year | 0 weeks |
| 1 year | 4 weeks |
| 2 years | 6 weeks |
| 3 years | 7 weeks |
| 4 years | 8 weeks |
| 5 years | 10 weeks |
| 6 years | 11 weeks |
| 7 years | 13 weeks |
| 8 years | 14 weeks |
| 9 years | 16 weeks |
| 10 years or more | 12 weeks |
Yes, the scale falls at 10 years. It was set when long service leave generally became available around the same point, so the drop from 16 to 12 weeks is intentional.
Worked out on your base rate
Redundancy pay uses your base rate of pay for ordinary hours. It leaves out overtime, penalty rates, shift and other loadings, bonuses and allowances. If you work part-time, use your usual weekly ordinary-hours pay.
The small business exception
If your employer had fewer than 15 employees, counting associated entities, there’s no NES redundancy pay. Some awards, enterprise agreements and contracts still provide it, so check yours and enter any extra amount in the calculator.
How redundancy pay is taxed
Tax-free limit for FY2026-27: $13,598 + $6,801 × completed years of service.
For example, with 22 years of service the limit is $13,598 + ($6,801 × 22) = $163,220. Anything above that is an employment termination payment (ETP), taxed at 32% if you’re under preservation age or 17% if you’ve reached it, up to the $270,000 cap, and 47% above the cap. These rates include the Medicare levy.
This isn’t your whole final pay
Redundancy pay is only one part of what you’re owed. Notice or pay in lieu, unused annual leave and any long service leave come on top. Use the Final Pay Calculator to add it all up.
Frequently asked questions
How many weeks of redundancy pay do I get?
It depends on your completed years of service: 4 weeks after 1 year, rising to 16 weeks at 9 years, and 12 weeks for 10 years or more. With less than 1 year of service the NES gives you none.
Why does redundancy pay drop at 10 years?
The NES scale falls from 16 weeks at 9 years to 12 weeks at 10 years or more. It was set on the basis that long-serving employees also become entitled to long service leave around that point. It is correct, not a mistake.
My employer has fewer than 15 staff — do I get redundancy pay?
Generally not under the NES. Employers with fewer than 15 employees (counting associated entities) don’t have to pay NES redundancy pay. Your award, enterprise agreement or contract may still provide it, so check those.
Is redundancy pay taxed?
A genuine redundancy payment is tax-free up to $13,598 plus $6,801 for each completed year of service (FY2026-27). Any excess is an employment termination payment, taxed at 32% (17% if you’ve reached preservation age) up to the $270,000 cap and 47% above it. Rates include Medicare levy.
I was offered a different role — am I still redundant?
Not necessarily. If your job is no longer needed but your employer could reasonably have moved you into another suitable role, the dismissal may not count as a genuine redundancy. If the offered role isn’t reasonable, for example different pay, hours or location, you can usually still be made redundant. Ask the Fair Work Commission if you’re unsure.
Do part-time and casual employees get redundancy pay?
Part-time employees are covered and get the same number of weeks, calculated on their usual weekly ordinary-hours pay. Casual employees generally aren’t entitled to NES redundancy pay. Use the part-time helper in the calculator to turn an hourly rate into weekly pay.
Sources
- Fair Work Ombudsman — Redundancy
- ATO — Genuine redundancy payments
This calculator gives an estimate only. Awards and agreements can pay more than the NES, and your situation may differ. It is not legal or financial advice.