Redundancy Pay Calculator Australia 2026-27: Payout and Tax
This redundancy pay calculator for Australia applies the National Employment Standards: 4 weeks' pay after 1 year of service, rising to 16 weeks at 9 years, plus notice and unused leave. With 2026-27 tax, the first $13,598 plus $6,801 for each completed year is tax-free. Enter your pay, dates and leave to see your redundancy pay and payout after tax.
Updated . Built and checked by My Easy Calculator against the Fair Work Act 2009 and the ATO's 2026-27 termination payment tax table. How we check figures
| NES redundancy pay, completed years | |
| 1 year | 4 weeks |
| 5 years | 10 weeks |
| 9 years, the most | 16 weeks |
| 10 years or more | 12 weeks |
| Tax, 2026-27 | |
| Tax-free base | $13,598 |
| Plus per completed year | $6,801 |
| ETP tax under 60 | 32% |
| ETP tax from 60 | 17% |
| ETP cap | $270,000 |
Estimate your redundancy payNES redundancy pay, notice, unused leave and 2026-27 tax
- 2026-27 tax rates
- Checked
More optionsEnterprise agreement formula, long service leave, hours, leave loading
Agreement or contract redundancy formula
Your estimate 2026-27
Figures update as you change any input. Your employer's final pay and payment summary set the real amounts.
Check your employer's figure
Enter the redundancy pay your employer offered, before tax and without notice or leave.
$See whether the offer meets the NES minimum.
Tax-free limit for your years
The most of a genuine redundancy payment you can receive tax-free in 2026-27.
$13,598 plus $6,801 for each completed year.
A 47-year-old on $1,800 a week is made redundant after 8 years and 7 months. The NES gives 14 weeks' redundancy pay ($25,200) and 5 weeks' notice paid out ($9,000), as 4 weeks plus 1 for being over 45. Both fall within the $68,006 tax-free limit for 8 years. Two weeks of unused leave with loading ($4,230) is taxed at 32%, so the payout after tax is $37,076.40.
NES redundancy pay and notice table
Under the National Employment Standards, an employee made redundant after at least 1 year of continuous service gets between 4 and 16 weeks' base pay, depending on completed years. The table shows the weeks, the amount at $1,800 a week, and the 2026-27 tax-free limit for the same years.
| Continuous service | Redundancy pay | At $1,800 a week | Tax-free limit |
|---|---|---|---|
| 1 to less than 2 years | 4 weeks | $7,200 | $20,399 |
| 2 to less than 3 years | 6 weeks | $10,800 | $27,200 |
| 3 to less than 4 years | 7 weeks | $12,600 | $34,001 |
| 4 to less than 5 years | 8 weeks | $14,400 | $40,802 |
| 5 to less than 6 years | 10 weeks | $18,000 | $47,603 |
| 6 to less than 7 years | 11 weeks | $19,800 | $54,404 |
| 7 to less than 8 years | 13 weeks | $23,400 | $61,205 |
| 8 to less than 9 years | 14 weeks | $25,200 | $68,006 |
| 9 to less than 10 years | 16 weeks | $28,800 | $74,807 |
| 10 or more years | 12 weeks | $21,600 | $81,608 |
| Continuous service | Notice | Over 45 with 2+ years |
|---|---|---|
| 1 year or less | 1 week | 1 week |
| More than 1 year, up to 3 years | 2 weeks | 3 weeks |
| More than 3 years, up to 5 years | 3 weeks | 4 weeks |
| More than 5 years | 4 weeks | 5 weeks |
How many weeks of redundancy pay am I entitled to?
Under the NES you get 4 weeks' pay after 1 completed year, 6 weeks after 2, 8 weeks after 4, 10 weeks after 5, rising to 16 weeks after 9 years, then 12 weeks from 10 years. Notice of 1 to 5 weeks is paid on top, and an award or enterprise agreement can give more.
How redundancy pay is calculated in Australia
Redundancy pay in Australia is your weekly base rate of pay multiplied by the number of weeks for your completed years of continuous service under the NES scale. Notice, or pay instead of notice, and unused leave are separate entitlements added to the final payout.
- Weekly base pay. Your ordinary rate for your ordinary hours, without overtime, penalty rates, bonuses or most allowances. A $95,000 salary is $1,826.92 a week.
- Completed years. Full years from your start date to your last day. 8 years and 7 months counts as 8.
- Redundancy weeks. From the NES scale, or your agreement's formula if it gives more.
- Notice. 1 to 4 weeks by length of service, plus 1 week if you are over 45 with at least 2 completed years. It is paid out if you do not work it.
- Unused leave. Annual leave hours at your hourly rate, plus 17.5% loading if your award or agreement pays it, and any long service leave.
- Tax. The genuine redundancy amount, including notice paid out, is tax-free up to $13,598 plus $6,801 per completed year in 2026-27; leave is taxed at up to 32%.
How to use the redundancy pay calculator
- Enter your base pay. Your ordinary weekly pay from your payslip, or your yearly salary, without overtime or allowances.
- Enter your start date and last day. Use the start of continuous service with this employer, including time before a transfer of business if it counts.
- Enter your age. It adds a week of notice over 45 and sets the tax rate from 60.
- Add unused annual leave. The hours owing on your latest payslip.
- Choose employer size and notice. Pick fewer than 15 employees for a small business, and whether you will work your notice.
- Add your agreement formula if you have one. Under More options, enter weeks per year and any cap from your enterprise agreement or contract.
- Read and check. Compare the result with your employer's offer using the tool below, then download a PDF to keep.
Who is eligible for redundancy pay?
You are eligible for NES redundancy pay if your employer no longer needs your job done by anyone, or becomes insolvent or bankrupt, you have at least 1 year of continuous service, and your employer has 15 or more employees. Some employees are excluded even if their job ends.
Who does not get NES redundancy pay
The NES does not give redundancy pay to employees of small businesses with fewer than 15 employees, casual employees, employees on a fixed-term contract or for a specified task, apprentices, trainees on a fixed-term arrangement, or employees dismissed for serious misconduct. Some awards cover small business employees anyway.
What makes a redundancy genuine
A redundancy is genuine when the employer no longer requires the job to be done by anyone, it has consulted as the award or agreement requires, and it could not reasonably redeploy you within the business. Replacing you with someone else in the same role is not a redundancy.
When an employer can pay less
An employer can apply to the Fair Work Commission to reduce redundancy pay, even to nil, if it finds you other acceptable employment or cannot afford to pay. Turning down a reasonable alternative job can reduce what you receive.
Redundancy pay vs notice, annual leave and long service leave
Redundancy pay compensates you for losing your job; notice, annual leave and long service leave are separate entitlements you receive as well. Each is worked out and taxed differently.
| Payment | How much | Tax on genuine redundancy |
|---|---|---|
| Redundancy pay | NES scale or agreement, base pay | Tax-free up to the limit, then ETP |
| Pay in lieu of notice | 1 to 5 weeks, full pay | Part of the tax-free genuine redundancy amount |
| Unused annual leave | All hours owing, plus any loading | Up to 32% |
| Unused long service leave | Under state or territory law | Up to 32% for leave accrued since 1993 |
| Unused sick leave | Usually not paid out | Not applicable |
None of these payments attracts the 12% Super Guarantee, because they are not ordinary time earnings. Your final normal pay up to your last day does.
Worked example: estimating redundancy pay
Each example uses the calculator's 2026-27 rules, with notice paid out unless stated.
8 years, $1,800 a week, age 47
14 weeks' redundancy ($25,200) plus 5 weeks' notice ($9,000) is $34,200, all within the $68,006 tax-free limit. 76 hours of leave with loading ($4,230) is taxed $1,353.60, leaving $37,076.40.
Same worker, 3 weeks per year agreement
An enterprise agreement paying 3 weeks per completed year, capped at 52, gives 24 weeks: $43,200, against $25,200 under the NES. With notice it is still within the tax-free limit, so the payout after tax is $55,076.40.
20 years, $2,500 a week, age 52
An agreement paying 4 weeks per year, capped at 80, gives $200,000 plus $12,500 notice. The first $149,618 is tax-free; the other $62,882 is an ETP taxed at 32%: $20,122.24. The payout after tax is $192,377.76.
The same payout at age 61
From preservation age, 60, the ETP rate falls to 17%, so tax on the $62,882 ETP is $10,689.94 instead of $20,122.24. The payout after tax rises to $201,810.06.
8 years with a 10-person business
Small businesses owe no NES redundancy pay, but notice still applies: 5 weeks paid out is $9,000, tax-free as part of a genuine redundancy. With leave, the payout after tax is $11,876.40.
$95,000 salary, 5 years 3 months
$95,000 ÷ 52 = $1,826.92 a week. 5 completed years gives 10 weeks: $18,269.23. Service is more than 5 years, so notice is 4 weeks: $7,307.69.
What if an award or enterprise agreement applies?
An award, enterprise agreement or employment contract can give more redundancy pay than the NES but never less. Some enterprise agreements pay a set number of weeks per year of service, often with a cap, and some awards also cover small business employees or set different rules for particular industries.
Find your agreement on the Fair Work Commission's agreements database and look for the redundancy clause. Enter its weeks per year and cap under More options; the calculator uses whichever is higher, the NES or the agreement.
Tax on redundancy payments
A genuine redundancy payment is tax-free up to $13,598 plus $6,801 for each completed year of service in 2026-27. Any amount above that limit is an employment termination payment (ETP), taxed at 32% if you are under 60 or 17% from 60, up to the $270,000 ETP cap, and 47% above it.
| Service | Tax-free limit |
|---|---|
| 1 completed year | $20,399 |
| 3 completed years | $34,001 |
| 5 completed years | $47,603 |
| 8 completed years | $68,006 |
| 10 completed years | $81,608 |
| 15 completed years | $115,613 |
| 20 completed years | $149,618 |
| 25 completed years | $183,623 |
| Taxable part | Tax rate |
|---|---|
| Under 60, up to the $270,000 ETP cap | 32% |
| 60 or over, up to the $270,000 ETP cap | 17% |
| Above the ETP cap | 47% |
| Unused annual and long service leave | Up to 32% |
What counts towards the tax-free amount
Redundancy pay and pay in lieu of notice both count as the genuine redundancy payment. The tax-free limit applies only if the redundancy is genuine and you are under Age Pension age, currently 67.
Unused leave
Unused annual leave and long service leave accrued since 17 August 1993, paid because of a genuine redundancy, is taxed at no more than 32% including the Medicare levy. Your employer withholds at that rate; if your income is low, your tax return may refund some.
Redundancy pay and your tax return
The tax-free amount does not appear as income. The ETP and the tax withheld are shown on your income statement or ETP payment summary. Use the income tax calculator Australia for your normal salary; it does not work out ETP tax.
Redundancy pay and Centrelink
Redundancy pay can delay JobSeeker Payment. Services Australia may apply an income maintenance period for leave and payments made instead of wages, and a liquid assets waiting period of up to 13 weeks if your savings, including your redundancy, are above its threshold.
Contact Services Australia before you apply, with your separation certificate and final pay details, to find out when payments can start.
Redundancy pay in NSW, Victoria, Queensland and WA
The NES redundancy scale is the same in every state and territory for national system employees, which covers most private sector workers. A redundancy calculator for NSW, Victoria, Queensland, South Australia or Tasmania therefore gives the same NES result. Long service leave, which also affects your payout, is set by state law and differs.
In Western Australia, employees of sole traders, partnerships and some trusts are in the state system and have different redundancy rules. State and local government employees in some states are also covered by state awards. Check with the Fair Work Ombudsman or your state industrial body if you are unsure.
What to do if your estimate differs from your employer's figure
If your employer's figure is lower than this estimate, first check the inputs: base pay, completed years and whether an agreement applies. Then ask your employer, in writing, how it was worked out.
- Compare the weeks. Check the weeks used against the NES table and your agreement.
- Check the pay rate. It should be your base rate for ordinary hours.
- Check service. Continuous service can include time before a transfer of business.
- Ask for a breakdown. Request the calculation in writing.
- Get help. Contact the Fair Work Ombudsman on 13 13 94. If you think the redundancy is not genuine, an unfair dismissal claim must be lodged with the Fair Work Commission within 21 days of the dismissal taking effect.
Common redundancy calculation mistakes
Most redundancy pay disputes come from the pay rate used or the years counted.
- Including overtime in the rate. Redundancy pay uses base pay only.
- Rounding up service. 4 years and 11 months is 4 completed years: 8 weeks, not 10.
- Forgetting the extra notice week. Over 45 with 2 or more years adds 1 week.
- Expecting more at 10 years. The NES drops from 16 to 12 weeks at 10 years.
- Taxing it like salary. Genuine redundancy is tax-free up to the limit, not taxed at your marginal rate.
- Treating notice as redundancy pay. They are separate; you get both.
How close is this estimate?
For national system employees the redundancy weeks and notice match the Fair Work Act exactly, and the tax follows the ATO's 2026-27 termination payment table. It does not include long service leave entitlements you have not entered, award-specific rules, Fair Work Commission reductions or the whole-of-income cap for non-genuine payments.
Frequently asked questions
After 5 completed years the NES gives 10 weeks' base pay, plus 3 or 4 weeks' notice depending on whether your service is more than 5 years, and 1 more week if you are over 45. On $1,800 a week, 10 weeks is $18,000, all tax-free under the $47,603 limit for 5 years.
Not under the NES. Employers with fewer than 15 employees, counting casuals employed regularly, do not have to pay NES redundancy pay. An award, agreement or contract can still require it, and notice and unused leave must be paid.
No. Notice is a separate entitlement on top of redundancy pay. If you do not work your notice, your employer pays it out, and for tax it counts as part of the tax-free genuine redundancy amount.
No. Casual employees are excluded from NES redundancy pay, even after years of regular work. A casual who has converted to permanent employment can qualify, counting their earlier regular service if the award or agreement allows.
No. Redundancy pay, pay in lieu of notice and unused leave paid on termination are not ordinary time earnings, so the 12% Super Guarantee does not apply. Super is paid on your normal pay up to your last day.
Not if the position is genuinely redundant. A voluntary redundancy, where you put your hand up for a role that is being abolished, can still be a genuine redundancy and get the same tax-free amount. A payment for simply resigning cannot.
The NES does not set a date, but most modern awards require final pay, including redundancy pay, within 7 days of the employment ending. Check your award, agreement or contract for the exact timing.
Yes, you keep your redundancy pay if you find a new job yourself. Only if your employer arranges, or helps you get, other acceptable employment can it ask the Fair Work Commission to reduce the amount.
No. It is an independent calculator from My Easy Calculator that applies the NES in the Fair Work Act and the ATO's 2026-27 tax rates. The Fair Work Ombudsman's own notice and redundancy calculator and your employer's final pay set the official figures.
Sources
- Redundancy pay and entitlements, Fair Work Ombudsman. Checked .
- Notice period, Fair Work Ombudsman. Checked .
- PAYG withholding Schedule 11: tax table for employment termination payments, 2026-27, Australian Taxation Office. Checked .
- Notice and redundancy calculator, Fair Work Ombudsman. Checked .
- Legislation: Fair Work Act 2009 s 117 (notice of termination), s 119 (redundancy pay), s 120 (variation by the Fair Work Commission), s 121 to 123 (exclusions), s 389 (genuine redundancy); Income Tax Assessment Act 1997 s 82-10 (ETP tax), s 83-15 (unused annual leave), s 83-170 to 83-175 (genuine redundancy payments).
Related calculators
- Income tax calculator AustraliaTax and take-home pay on a salary; it does not calculate ETP tax.
- Superannuation calculator AustraliaSee how a career break or extra contributions change your super at retirement.
- Payroll tax calculatorState payroll tax for employers, including on termination payments.
- Mortgage repayment calculatorSee how a lump sum from your payout could cut your home loan.
Disclaimer
Calculation methodology sourced from official government publications. See our Editorial Policy for how we build and maintain our calculators.
Results are estimates for national system employees, not legal or tax advice. Your entitlements depend on your award, agreement, contract and circumstances. Confirm with your employer, the Fair Work Ombudsman or a registered tax agent before relying on a figure.