Redundancy Pay Calculator

Estimate your NES redundancy pay entitlement under the Fair Work Act 2009. Enter your years of continuous service and base pay for an instant gross estimate.

Disclaimer: This calculator provides a minimum estimate based on the NES s119 scale. It is not legal advice. Your actual entitlement may be higher under your enterprise agreement, modern award, or employment contract. Seek advice from a qualified employment lawyer for your specific circumstances.

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Estimate your redundancy pay

Based on the NES s119 scale. Enter your details below for an instant estimate.

At or above pension age, the full payment is treated as an ETP with no tax-free component.

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Understanding Redundancy Pay in Australia

What is redundancy pay?

Redundancy pay is a statutory entitlement paid to employees whose jobs are eliminated because the employer no longer needs that role to be performed by anyone, or because the business is insolvent. It is separate from notice pay, accrued annual leave, and long service leave, all of which may also be owed on termination.

The National Employment Standards (NES) set a minimum redundancy pay scale under s119 of the Fair Work Act 2009 (Cth). Modern awards and enterprise agreements can (and sometimes do) provide more generous entitlements. Always check the instrument that covers your employment before accepting a redundancy package.

Who is eligible for NES redundancy pay?

The NES redundancy entitlement applies to employees who:

  • have completed at least one year of continuous service, and
  • are employed by an employer with 15 or more employees at the time of the dismissal.

The following employees are generally not covered:

  • Casual employees: casuals are excluded from the NES redundancy scale.
  • Small business employees: employers with fewer than 15 employees are exempt from paying NES redundancy pay.
  • Employees with less than one year of service: the NES scale starts at one year; shorter-tenured employees receive nothing under the NES (though their award may differ).
  • Fixed-term contract employees: where the contract expires in accordance with its terms and is not renewed, redundancy pay is generally not owed.

A redundancy must also be genuine, meaning the role is truly abolished and the employer has complied with any consultation obligations in the applicable modern award or enterprise agreement. If these conditions are not met, the termination may be challenged as an unfair dismissal.

How is the NES redundancy scale calculated?

The NES scale multiplies a set number of weeks by the employee's ordinary-time weekly base rate. Notably, the entitlement steps down from 16 weeks (at 9 years) to 12 weeks (at 10+ years), which is intentional under the Act and is not an error.

Tax treatment of redundancy payments

Genuine redundancy payments receive concessional tax treatment in Australia. For the 2025–26 income year, a tax-free component applies, calculated as $13,100 plus $6,552 for each completed year of service. Amounts above that threshold are taxed at a concessional rate (up to 32% including Medicare Levy), rather than at your full marginal rate.

Payments for unused annual leave and long service leave are taxed differently and do not attract the redundancy concession. The tax-free threshold increases each year in line with indexation. A tax adviser or registered tax agent can confirm the current rates and calculate your individual tax position.

Is your redundancy genuine?

A redundancy that is not genuine (for example, where your role continues under a different title, or where the employer failed to follow the consultation process in the award) can become the basis for an unfair dismissal or general protections claim. Find employment lawyers in your state who can assess whether your dismissal meets the legal test for genuine redundancy and advise on your options.

For a plain-English walkthrough of the full entitlement scale, what counts as a genuine redundancy, the tax-free limit, and how redundancy pay differs from notice, read our guide to redundancy pay in Australia or our complete guide to employment law in Australia.

Frequently Asked Questions

How is NES redundancy pay calculated?
Under the National Employment Standards (NES), redundancy pay is based on continuous service with the same employer. The scale runs from 4 weeks at 1 year up to a maximum of 16 weeks at 9 years, then drops to 12 weeks for 10 or more years. Multiply the applicable weeks by the employee's ordinary-time weekly base rate to get the gross amount. This calculator follows the s119 Fair Work Act 2009 table exactly.
Why does redundancy pay drop at 10 years?
The NES deliberately steps down from 16 weeks (9 years) to 12 weeks (10+ years). This is not a bug; it reflects a policy trade-off in the Fair Work Act 2009 that caps the maximum entitlement at 12 weeks for very long-serving employees. Some awards and enterprise agreements provide a more generous scale, so always check the applicable instrument.
What counts as 'base pay'?
A 'week's pay' for redundancy purposes means the base rate for ordinary hours only. It excludes overtime, penalty rates, shift allowances, annual leave loading, commissions, and bonuses. If the employee works part-time, it is the actual ordinary-hours base rate, not a full-time equivalent. Enter your pay as weekly, fortnightly, monthly, or annually — the calculator converts it to a weekly rate automatically.
Who is not entitled to NES redundancy pay?
Employees with less than one year of continuous service receive no NES redundancy pay. Casual employees are also generally excluded. Small business employers (fewer than 15 employees) are exempt from redundancy pay obligations under the NES. In addition, genuine redundancy requires the employer to comply with any consultation obligations in the modern award or enterprise agreement; failure to do so can affect entitlement.
Is my redundancy pay taxable?
Genuine redundancy payments receive concessional tax treatment in Australia. There is a tax-free component based on years of service, with the balance taxed at a concessional rate (up to 32% including Medicare Levy in 2025–26). The tax-free threshold for 2025–26 is $13,100 plus $6,552 for each completed year of service. Amounts above the tax-free limit are taxed at a concessional rate rather than your marginal rate. Consult a tax professional for your specific circumstances.
When should I get legal advice about redundancy?
See an employment lawyer if you believe your redundancy is not genuine (i.e. your role continues under a different name or with a different person), if your employer has not followed the required consultation process, if you were not paid your full entitlements, or if you suspect the redundancy is connected to a protected right (e.g. union membership, parental leave, or a discrimination complaint). An employment lawyer can advise on unfair dismissal claims, general protections claims, and negotiating a redundancy package above the NES minimum.