Redundancy Calculator Australia
This redundancy calculator estimates your payout under the National Employment Standards: redundancy pay, notice, unused leave and tax. It is for employees whose job has been made redundant. It uses the Fair Work Ombudsman pay scale and the ATO 2026-27 tax-free limit of $13,598 plus $6,801 per year, read 31 October 2026.
| Continuous service | Redundancy pay |
|---|---|
| At least 1 but less than 2 | 4 weeks |
| At least 2 but less than 3 | 6 weeks |
| At least 3 but less than 4 | 7 weeks |
| At least 4 but less than 5 | 8 weeks |
| At least 5 but less than 6 | 10 weeks |
| At least 6 but less than 7 | 11 weeks |
| At least 7 but less than 8 | 13 weeks |
| At least 8 but less than 9 | 14 weeks |
| At least 9 but less than 10 | 16 weeks |
| At least 10 years | 12 weeks |
| Continuous service | Minimum notice |
|---|---|
| 1 year or less | 1 week |
| More than 1 year, up to 3 years | 2 weeks |
| More than 3 years, up to 5 years | 3 weeks |
| More than 5 years | 4 weeks |
| Plus 1 week if the employee is over 45 with at least 2 years of service | |
How this is calculated
- Weekly pay = annual base salary ÷ 52. NES redundancy pay and notice use your base rate for ordinary hours, without bonuses, loadings, allowances or overtime.
- Redundancy pay = weekly pay × weeks from the NES scale for your completed years of continuous service. It is zero with less than 1 year of service or if your employer is a small business employer with fewer than 15 employees.
- Notice: 1 week for 1 year of service or less, 2 weeks for more than 1 and up to 3 years, 3 weeks for more than 3 and up to 5 years, 4 weeks for more than 5 years, plus 1 week if you are over 45 with at least 2 years of service. Weeks not worked are paid in lieu.
- Unused leave = weekly pay × weeks of leave. Annual leave loading (usually 17.5% in awards that include it) is added only if you tick the box.
- Tax-free part of redundancy pay and pay in lieu of notice: up to $13,598 + $6,801 × completed years (2026-27).
- Tax: the excess is an employment termination payment, taxed at 32% under age 60 or 17% from age 60, up to the $270,000 ETP cap, and 47% above it. Unused leave paid on genuine redundancy is taxed at 32%.
Genuine redundancy tax treatment applies only if your job no longer exists and you are under Age Pension age (67). This is an estimate; your award, agreement or contract may give more than the NES.
Sources
- Fair Work Ombudsman, Redundancy pay (NES scale), content updated 28 September 2026, read 31 October 2026
- Fair Work Ombudsman, Who doesn’t get redundancy pay (small business employers), content updated 19 March 2026, read 31 October 2026
- Fair Work Ombudsman, Dismissal (minimum notice periods), content updated 28 August 2026, read 31 October 2026
- Fair Work Ombudsman, Final pay (annual leave and loading on termination), read 31 October 2026
- ATO, Employment termination payments: genuine redundancy limits and ETP cap, 2026-27, accessed Oct 2026
- ATO, How ETP components are taxed, updated 5 June 2026, read 31 October 2026
- ATO, Withholding from unused annual leave payments, read 31 October 2026
Worked example
Salary $85,000, 6 years of service, 4 weeks of unused annual leave with no loading, under 45, under 60, employer with 15 or more staff, no notice worked:
- Weekly pay: $85,000 ÷ 52 = $1,634.62.
- Redundancy pay: 11 weeks × $1,634.62 = $17,980.77.
- Pay in lieu of notice: 4 weeks × $1,634.62 = $6,538.46.
- Tax-free limit: $13,598 + 6 × $6,801 = $54,404. The $24,519.23 of redundancy and notice pay is all tax-free.
- Annual leave: 4 weeks × $1,634.62 = $6,538.46, taxed at 32% = $2,092.31.
- Total gross payout $31,057.69, estimated tax $2,092.31, net $28,965.38.
Frequently asked questions
How much redundancy pay am I entitled to in Australia?
Under the National Employment Standards, redundancy pay rises from 4 weeks of pay after at least 1 year of continuous service to 16 weeks after 9 years, then falls to 12 weeks from 10 years, when long service leave usually applies. It is paid at your base rate for ordinary hours. An award or enterprise agreement can give more.
Do small businesses have to pay redundancy?
Most small business employers do not have to pay redundancy pay under the National Employment Standards. A small business employer has fewer than 15 employees at the time, counting the employees being made redundant, regular casuals and employees of associated entities. Exceptions apply to businesses that became small through downsizing and to industry redundancy schemes. Notice of termination still applies.
How much of a redundancy payment is tax-free?
For 2026-27 the tax-free part of a genuine redundancy payment is $13,598 plus $6,801 for each complete year of service. With 6 complete years the limit is $54,404. Unused annual leave and long service leave do not count towards it.
How is redundancy pay above the tax-free limit taxed?
The amount above the tax-free limit is an employment termination payment. It is taxed at 32% if you are under preservation age (60) or 17% if you have reached it, up to the ETP cap of $270,000 for 2026-27. Any amount above the cap is taxed at 47%, the top rate of 45% plus the 2% Medicare levy.
Is unused annual leave paid out on redundancy and how is it taxed?
Yes. Unused annual leave is paid out when employment ends, including annual leave loading if you would have received it when taking leave. When the job ends through genuine redundancy, unused annual leave, leave loading and long service leave accrued after 15 August 1978 have tax withheld at 32%.