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.

Estimated gross redundancy payout
 
After estimated tax:  
 
NES redundancy pay
 
by completed years
Notice entitlement
 
NES minimum
Notice paid out
 
payment in lieu
Redundancy pay
 
Pay in lieu of notice
 
Annual leave
 
Long service leave
 
Total gross payout  
Tax-free part
 
Taxable part
 
Estimated tax  
 
Continuous serviceRedundancy pay
At least 1 but less than 24 weeks
At least 2 but less than 36 weeks
At least 3 but less than 47 weeks
At least 4 but less than 58 weeks
At least 5 but less than 610 weeks
At least 6 but less than 711 weeks
At least 7 but less than 813 weeks
At least 8 but less than 914 weeks
At least 9 but less than 1016 weeks
At least 10 years12 weeks
Continuous serviceMinimum notice
1 year or less1 week
More than 1 year, up to 3 years2 weeks
More than 3 years, up to 5 years3 weeks
More than 5 years4 weeks
Plus 1 week if the employee is over 45 with at least 2 years of service
Tax-free limit 2026-27 (ATO): $13,598 plus $6,801 for each complete year of service. ETP cap: $270,000.

How this is calculated

  1. Weekly pay = annual base salary ÷ 52. NES redundancy pay and notice use your base rate for ordinary hours, without bonuses, loadings, allowances or overtime.
  2. 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.
  3. 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.
  4. 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.
  5. Tax-free part of redundancy pay and pay in lieu of notice: up to $13,598 + $6,801 × completed years (2026-27).
  6. 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

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:

  1. Weekly pay: $85,000 ÷ 52 = $1,634.62.
  2. Redundancy pay: 11 weeks × $1,634.62 = $17,980.77.
  3. Pay in lieu of notice: 4 weeks × $1,634.62 = $6,538.46.
  4. Tax-free limit: $13,598 + 6 × $6,801 = $54,404. The $24,519.23 of redundancy and notice pay is all tax-free.
  5. Annual leave: 4 weeks × $1,634.62 = $6,538.46, taxed at 32% = $2,092.31.
  6. 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%.

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