Redundancy pay calculator
Use this redundancy pay calculator to work out the minimum redundancy pay you are owed under the National Employment Standards, the notice or pay in lieu on top, and the tax-free limit for a genuine redundancy in 2026-27. Enter your years of continuous service and your weekly base pay to see the full redundancy payment.
Updated 12 November 2026 · Uses 2026-27 figures
Work out your redundancy pay
Enter your years of service, weekly base pay and whether your employer is a small business.
General information only, not financial, tax or legal advice. Results are estimates based on 2026-27 figures and the assumptions shown. Check your award, agreement or a qualified adviser for your situation.
Looking for steady shifts or a permanent role? TQN Personnel places casual, contract and permanent staff across Australia.
Find workHow to use the redundancy pay calculator
- Enter your years of continuous service with the employer. Part years count towards your band, so 6.5 years falls in the 6 to 7 year band.
- Enter your weekly base pay for your ordinary hours, without overtime, penalty rates or allowances.
- Choose whether your employer has fewer than 15 employees. Small businesses are exempt from NES redundancy pay.
- Read your redundancy pay, the notice or pay in lieu that goes with it, and the amount that can be paid tax-free.
How redundancy pay is calculated
Redundancy happens when your employer no longer needs your job done by anyone, for example because of a restructure, new technology or a downturn. Under the National Employment Standards (NES), a permanent employee made redundant gets a set number of weeks of base pay depending on their continuous service.
| Continuous service | Redundancy pay |
|---|---|
| Less than 1 year | Nil |
| 1 year to less than 2 years | 4 weeks |
| 2 to less than 3 years | 6 weeks |
| 3 to less than 4 years | 7 weeks |
| 4 to less than 5 years | 8 weeks |
| 5 to less than 6 years | 10 weeks |
| 6 to less than 7 years | 11 weeks |
| 7 to less than 8 years | 13 weeks |
| 8 to less than 9 years | 14 weeks |
| 9 to less than 10 years | 16 weeks |
| 10 years or more | 12 weeks |
The scale drops to 12 weeks at 10 years because long service leave becomes available at about that point in most states. Redundancy pay is calculated on your base rate for ordinary hours, not on overtime, penalty rates or allowances.
Worked example
Chris has 6 years of continuous service, earns $1,400 a week in base pay and works for a company with more than 15 employees.
Redundancy pay: 11 weeks × $1,400 = $15,400.
Notice: more than 5 years of service means 4 weeks, or $5,600 if paid in lieu. Total before leave payouts: $21,000.
Tax-free limit for a genuine redundancy in 2026-27: $13,598 + (6 × $6,801) = $54,404. The redundancy pay is well under that, so it can be paid tax-free.
Unused annual leave, and long service leave where it applies, is paid out on top.
Is redundancy pay tax free?
Genuine redundancy pay is tax-free up to a limit set each financial year. For 2026-27 the limit is $13,598 plus $6,801 for each completed year of service. Anything above that limit is taxed as an employment termination payment at concessional rates, up to a cap.
To count as genuine, the redundancy must be a real dismissal because the job no longer exists, the payment must be more than you would get if you simply resigned, and you must be under Age Pension age. Notice paid in lieu and unused leave are taxed separately, not as part of the tax-free amount.
Is super paid on redundancy pay?
No. Super guarantee is not payable on redundancy pay, because it is not ordinary time earnings. Super is payable on notice paid in lieu. You can choose to put some of your redundancy payment into super, within the contribution caps.
Who is not entitled to redundancy pay
Not everyone gets NES redundancy pay. The main exceptions are:
- small business employees, where the employer has fewer than 15 employees, counting associated entities and regular casuals
- casual employees
- employees with less than 1 year of continuous service
- employees on a fixed-term contract that ends on its agreed date, or engaged for a specific task or season
- employees dismissed for serious misconduct
- apprentices and trainees in some cases
An employer can also apply to the Fair Work Commission to pay less if it finds the employee other acceptable work. Some awards and enterprise agreements give more redundancy pay than the NES, so check yours. Working in WA? Our redundancy pay in WA guide covers the state system.
After redundancy: your next steps
Ask your employer for the redundancy payment breakdown in writing and check the weeks, notice and leave against this calculator. If you think your redundancy is not genuine, you may be able to make an unfair dismissal claim, which has a 21-day time limit.
Our redundancy pay guide walks through the rules in more detail. If you are looking for your next role, TQN Personnel places casual, contract and permanent staff across Australia. Register for work and we can help you get back into a job quickly.
Frequently asked questions
How is redundancy calculated in Australia?
Redundancy pay is a set number of weeks of base pay that depends on your continuous service, from 4 weeks at 1 year up to 16 weeks at 9 years, then 12 weeks from 10 years. Multiply the weeks for your band by your weekly base pay. Notice or pay in lieu and unused leave are paid on top.
How much is redundancy pay?
Under the National Employment Standards it ranges from nil with less than 1 year of service to 16 weeks of base pay with 9 to 10 years. For example, 6 years of service on $1,400 a week gives 11 weeks, or $15,400. Your award or agreement may give more.
Is redundancy pay tax free?
Genuine redundancy pay is tax-free up to $13,598 plus $6,801 for each completed year of service in 2026-27. Amounts above the limit are taxed as an employment termination payment. Notice paid in lieu and unused leave are taxed separately.
Is super paid on redundancy payments?
No. Super guarantee isn't paid on redundancy pay because it isn't ordinary time earnings. Super is paid on notice paid in lieu of working it. You can choose to contribute some of your redundancy payment to super, within the caps.
Do you pay tax on redundancy?
Only on the part above the tax-free limit, and on notice and leave paid out. The tax-free amount for a genuine redundancy in 2026-27 is $13,598 plus $6,801 per completed year of service. Your employer withholds tax on the rest.
Do small business employees get redundancy pay?
Not under the National Employment Standards. Employers with fewer than 15 employees, counting associated entities and regular casuals, don't have to pay NES redundancy pay. An award, agreement or contract may still require it.
What is redundancy?
Redundancy is when an employer ends your job because it no longer needs anyone to do it, for example after a restructure, a new system or a business closing. It is different from being dismissed for performance or conduct.
Related calculators
Sources and assumptions
- Fair Work Ombudsman: Redundancy pay and entitlements
- ATO: Genuine redundancy and early retirement scheme payments
General information only, not financial, tax or legal advice. Results are estimates based on 2026-27 figures and the assumptions shown. Check your award, agreement or a qualified adviser for your situation.