Redundancy Calculator: How Redundancy Pay Is Worked Out
A redundancy calculator works out your National Employment Standards (NES) redundancy pay by matching your completed years of service to the Fair Work redundancy table, so 5 years but less than 6 years earns 10 weeks of base pay. NES redundancy pay applies when your employer has 15 or more employees and you have at least 1 year of service, unless your award or contract gives more. This guide is for employers and workers, and it covers the table, a worked example, tax, notice and where to go for help.
- NES redundancy pay runs from 4 weeks for 1 to 2 years of service up to 16 weeks for 9 to 10 years, and 12 weeks for 10 years or more.
- There is no NES redundancy pay for less than 1 year of service or for small business employers with fewer than 15 employees, though an award or contract may still provide it.
- For 2026-27 the tax-free part of a genuine redundancy payment is $13,598 plus $6,801 for each completed year of service.
- An unfair dismissal application must be lodged with the Fair Work Commission within 21 days of the dismissal taking effect.
Redundancy pay calculator (NES)
Uses the NES redundancy table and your base weekly pay. Awards, agreements and contracts can give more.
Estimate only. Notice pay, unused annual leave and long service leave are paid on top. Tax-free limit uses the 2026-27 figures quoted on this page ($13,598 + $6,801 per completed year). Check with Fair Work or a payroll adviser before relying on it.
What is a redundancy calculator?
A redundancy calculator is a simple tool or method for working out how much redundancy pay, notice and leave an employee should receive when a job is no longer needed. This page shows the rules behind it, so you can check any online tool against the official table.
| Term | Meaning | Why it matters |
|---|---|---|
| Redundancy calculator | A method that matches completed years of service to the NES table and applies the employee's base weekly pay. | It gives a quick estimate before you check the award and pay records. |
| NES redundancy pay | The minimum payment under the National Employment Standards for employees whose job is made redundant. | Awards, agreements and contracts can give more, but not less. |
| Genuine redundancy | The job is no longer required, the employer followed any consultation duties and redeployment was considered. | If it is not genuine, an employee may have an unfair dismissal claim. |
| Notice of termination | The warning period, or pay in lieu, given before employment ends. | It is separate from, and paid in addition to, redundancy pay. |
| Tax-free part | The portion of a genuine redundancy payment that is not taxed, which is $13,598 plus $6,801 per completed year for 2026-27. | It affects how much you receive after tax. |
| Small business employer | An employer with fewer than 15 employees. | There is no NES redundancy pay for small business employers. |
Who a redundancy calculator applies to
Most private-sector employees are in the national system under the Fair Work Act 2009 (Cth). NSW state public sector and some local government employees are in the NSW state system and may have different rules, so check before you rely on the table.
| Situation | What applies |
|---|---|
| Full-time employee, 15 or more employees at the employer | NES redundancy pay under the table below, after at least 1 year of service, plus notice and unused annual leave. |
| Part-time employee | The same table, using the employee's ordinary weekly pay for the hours they work. |
| Casual employee | Generally not covered by NES redundancy pay, but check the award or agreement. |
| Employee with less than 1 year of service | No NES redundancy pay, but notice and final pay entitlements still apply. |
| Small business employer (fewer than 15 employees) | No NES redundancy pay, though an award, agreement or contract may still provide it. |
| Labour hire worker | Employed by the provider, so the provider's size and the worker's service with the provider decide the entitlement. |
Redundancy calculator: NES redundancy table
This is the NES redundancy table, also called the Fair Work redundancy table. Weeks are paid at the employee's base rate for ordinary hours.
| Completed years of service | Redundancy pay |
|---|---|
| Less than 1 year | No NES redundancy pay |
| 1 to 2 years | 4 weeks |
| 2 to 3 years | 6 weeks |
| 3 to 4 years | 7 weeks |
| 4 to 5 years | 8 weeks |
| 5 to 6 years | 10 weeks |
| 6 to 7 years | 11 weeks |
| 7 to 8 years | 13 weeks |
| 8 to 9 years | 14 weeks |
| 9 to 10 years | 16 weeks |
| 10 years or more | 12 weeks |
How are redundancy payments calculated?
You can use this method as a manual redundancy calculator. Do the steps in order and check the result against your payslips.
- Confirm the employer has 15 or more employees and that the employee has at least 1 year of continuous service.
- Count completed years of service from the start date to the last day of employment, including any period that counts as continuous.
- Find that number of years in the NES redundancy table above and note the number of weeks.
- Work out the employee's weekly base rate of pay for ordinary hours, leaving out overtime and one-off payments.
- Multiply the weekly base rate by the weeks in the table, then add notice, pay in lieu and unused annual leave owing.
- Check the award, agreement and contract for a higher figure, and use whichever gives the employee more.
| Worked example (structure) | Result |
|---|---|
| Employee profile | Full-time employee, aged under 45, with 3 completed years of service at an employer with 15 or more employees. |
| Redundancy pay | 3 to 4 years of service falls in the 7 weeks band, so the payment is 7 weeks of base pay for ordinary hours. |
| Notice | 3 to 5 years of service means 3 weeks of notice from the employer, or pay in lieu of notice. |
| Other amounts | Any unused annual leave is paid out when employment ends. |
| Tax-free part | For 2026-27 the limit is $13,598 plus $6,801 for each of the 3 completed years. |
Employer checklist for a redundancy
- Confirm the role is genuinely redundant, and document the business reason and the date it was decided.
- Check the award or enterprise agreement for consultation steps, and consult affected employees before the decision is final.
- Consider redeployment into a suitable role within the business or a related business, and record what you considered.
- Give written notice, or pay in lieu, using the NES minimum or the longer period in the award or contract.
- Pay redundancy pay under the NES table, the unused annual leave and any other final entitlements.
- Issue a payslip within 1 working day of payday and keep time and wage records for 7 years.
- Report payroll through Single Touch Payroll on or before payday, and pay super so it reaches the fund within 7 business days.
- Ask the Fair Work Commission about reducing the amount only in limited cases, such as acceptable alternative work, and get legal advice first.
Redundancy calculator and notice period
Notice is paid in addition to redundancy pay, and our notice period guide has more examples.
- Up to 1 year of service means 1 week of notice, and 1 to 3 years means 2 weeks.
- 3 to 5 years means 3 weeks, and more than 5 years means 4 weeks.
- An employee over 45 with at least 2 years of service gets 1 extra week.
- Notice is not required for serious misconduct, and pay in lieu of notice is allowed.
Redundancy calculator, severance pay and settlement
People often use severance, redundancy and settlement as if they mean the same thing. They do not, and the paperwork matters.
See severance pay for how it differs from NES redundancy pay, and employment settlement agreement for what to check before signing.
- Redundancy pay is the NES minimum when the job goes. Severance can be a larger payment set by a contract or policy.
- A settlement agreement can end a dispute, but it cannot remove NES entitlements or ask you to waive them.
- Read any agreement carefully and keep copies, because it may affect your tax-free part and later claims.
- Take legal advice before you sign anything that releases the employer from future claims.
Redundancy calculator, retrenchment and transfer of business
Read our retrenchment and transfer of business guides, because a sale can change who owes the entitlement.
- Check whether the business is being sold, merged or moved, since your service may be recognised by the new employer.
- If the new employer offers an equivalent role on similar terms, the original employer may not owe redundancy pay, depending on the circumstances.
- Ask for any offer in writing and compare pay, location, hours and your continuous service before you decide.
- Get advice from the Fair Work Ombudsman or an employment lawyer if the answer is unclear.
Redundancy calculator and redundancy pay in WA
Our redundancy pay in WA guide covers the state differences, because some WA employers sit outside the national system.
- Confirm whether your employer is in the national system or the WA state system, since some state-system employers are covered by different rules.
- Use the NES table as the minimum for national-system employees in every state, including NSW and WA.
- Check your award or agreement for any extra redundancy pay on top of the NES minimum.
- Contact the Fair Work Ombudsman on 13 13 94 if you cannot tell which system covers you.
Redundancy calculator and your paperwork when you leave
Use our resignation letter and relieving letter guides if you need a starting point, and keep copies of both.
- Do not resign if the employer has told you your job is redundant, because resigning can affect your entitlements.
- Ask for a written statement of service, the termination date and the entitlements you will be paid.
- Request a relieving letter or reference, and keep a copy of your final payslip and records.
- Check your final pay includes redundancy pay, notice, unused annual leave and any amounts owing.
Redundancy calculator and unfair dismissal
A redundancy that is not genuine may be an unfair dismissal. Workers have a short window to act.
Read our unfair dismissal guide for the full process.
- Lodge an application with the Fair Work Commission within 21 days of the dismissal taking effect.
- The minimum employment period is 6 months, or 12 months for a small business employer with fewer than 15 employees.
- The high income threshold is $190,100 for dismissals on or after 1 July 2026.
- The compensation cap is $95,050 for claims lodged on or after 1 July 2026, and small business employers can use the Small Business Fair Dismissal Code.
Common mistakes to avoid with a redundancy calculator
- Using the wrong band in the table, such as counting a part year or confusing 9 to 10 years with 10 years or more.
- Leaving out notice or unused annual leave, which are paid in addition to the redundancy pay.
- Assuming a small business must pay NES redundancy pay, when the exemption applies to employers with fewer than 15 employees.
- Disguising a performance issue as a redundancy, then replacing the same job soon after.
- Signing a settlement agreement without reading it or getting advice, or letting the 21-day window pass.
- Failing to keep payslips, records and letters, which makes any later dispute harder for both sides.
Redundancy calculator FAQ
How are redundancy payments calculated?
Match the employee's completed years of service to the NES redundancy table, then multiply the number of weeks by their weekly base rate for ordinary hours. For example, 5 years but less than 6 years earns 10 weeks. Add notice and unused annual leave, and check the award for a higher figure.
What is the NES redundancy table?
It is the Fair Work redundancy table that sets minimum redundancy pay by years of service. It starts at 4 weeks for 1 to 2 years and peaks at 16 weeks for 9 to 10 years. There is no NES redundancy pay for less than 1 year of service.
Do small businesses have to pay redundancy?
No NES redundancy pay is required from small business employers with fewer than 15 employees. An award, agreement or contract may still require a payment, and notice and final pay still apply, so check your documents or call the Fair Work Infoline on 13 13 94.
Is redundancy pay taxed?
Part of a genuine redundancy payment is tax-free. For 2026-27 the tax-free part is $13,598 plus $6,801 for each completed year of service. Any amount above that is taxed, so check with the ATO or a registered tax adviser for your situation.
How much notice must an employer give?
The NES minimum is 1 week for up to 1 year of service, 2 weeks for 1 to 3 years, 3 weeks for 3 to 5 years and 4 weeks for more than 5 years. An employee over 45 with at least 2 years of service gets 1 extra week.
How long do I have to challenge a redundancy?
You must lodge an unfair dismissal application with the Fair Work Commission within 21 days of the dismissal taking effect. You also need to meet the minimum employment period, which is 6 months, or 12 months with a small business employer.
Next step: check your redundancy figures
Run the table, the notice and your leave balance, then compare the total with your final pay. At TQN Personnel, we help workers find their next role across Sydney, so you can register for work as soon as you are ready. This is general information, not legal, tax or financial advice, so check the Fair Work Ombudsman, the ATO or an employment lawyer for your situation.