Redundancy Pay Calculator Australia
Calculate your NES redundancy entitlement in seconds — enter your years of service and weekly pay. Then switch to the Tax tab to see what’s tax-free and your net payout.
under NES
2025–26
to qualify
exemption
Redundancy Entitlement Calculator
NES minimums under Fair Work Act 2009 — private sector Australia
NES Redundancy Pay Table — Fair Work Act 2009
| Years of service | Weeks redundancy pay | At $1,500/wk |
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Tax on Redundancy Calculator
ATO genuine redundancy rules · 2025–26 tax-free limits · ETP withholding
Tax-free amounts use 2025–26 ATO genuine redundancy limits: $13,100 base + $6,552 per completed year of service. ETP withholding is 32% (including Medicare levy) for amounts up to the ETP cap ($260,000 in 2025–26). These are estimates only — actual tax depends on total income for the year. Full tax guide →
Redundancy Calculator by State — NSW, VIC, QLD, WA
Redundancy pay under the NES is federal law — identical in every state. The calculator above applies to all Australian states. Here’s what that means in practice for each state’s major search queries.
NSW
NSW employees use the same NES redundancy table as every other state. Enter your years of service and weekly pay in the calculator above for your exact NSW redundancy payout.
VIC
Victorian employees are covered by the federal NES. The redundancy calculation is identical to NSW, QLD and WA. Use the calculator above — state selection makes no difference to the NES result.
QLD
Queensland private sector employees are covered by the federal NES — same entitlements as every other state. Queensland state government employees may be covered by separate instruments; check your specific award or agreement.
WA
Most WA private sector employees are covered by the federal NES and use the same redundancy table. A small subset remain under WA state industrial law — if unsure, check with the WA Industrial Relations Commission.
What redundancy pays you get
On top of redundancy pay (NES weeks × weekly rate), you are also entitled to:
- All unused annual leave — paid at your ordinary rate, taxed using Schedule 7
- Payment in lieu of notice — if your employer doesn’t require you to work out your notice period
- Long service leave — if you’ve reached the qualifying period in your state
- Superannuation on ordinary earnings up to the date of termination
These are in addition to redundancy pay — use the annual leave calculator and long service leave calculator to add these up.
The 10-year NES drop — don’t miss this
The NES table has a counter-intuitive rule: the redundancy payment drops after 10 years of service. At 9–10 years you receive 16 weeks — the maximum. At 10+ years, only 12 weeks.
This is intentional under the Fair Work Act — the rationale is that long-tenured employees have stronger redeployment prospects. However, your enterprise agreement or employment contract may override this with more generous terms. Always check your specific agreement.
If you are approaching 10 years of service, the timing of a redundancy can significantly affect your entitlement — see full explanation with worked examples.
Who is NOT entitled to redundancy pay
- Casual employees — no guaranteed ongoing employment, so no redundancy entitlement under the NES
- Less than 12 months service — minimum 1 year continuous employment required
- Small business employees — employers with fewer than 15 staff are exempt from NES redundancy (though your award may still require it)
- Fixed-term contract employees — where the role ends at the agreed date
- Serious misconduct dismissal — dismissal for serious misconduct forfeits redundancy entitlement
Genuine redundancy vs other termination
A genuine redundancy means the job itself is no longer needed — not just that the person is being let go. For a redundancy to be genuine under the Fair Work Act, three conditions must all be met:
- The employer no longer requires the job to be done by anyone
- The employer has complied with any consultation obligations in the relevant award or agreement
- It was not reasonably practicable to redeploy the employee within the business or an associated entity
Only genuine redundancies attract the ATO tax-free threshold. See full guide to genuine redundancy rules.
Redundancy Calculator — Frequently Asked Questions
Plain-English answers on Australian redundancy pay, NES entitlements, tax treatment and who qualifies.
How is redundancy pay calculated in Australia?
Using the NES table: years of continuous service maps to a number of weeks pay. At 1–2 years: 4 weeks. At 5–6 years: 10 weeks. At 9–10 years: 16 weeks (maximum). Pay = NES weeks × ordinary weekly base rate (no overtime or bonuses). Use the calculator above for your exact figure.
Why does redundancy pay drop after 10 years under the NES?
It’s a quirk of the Fair Work Act NES table. At 9–10 years you get 16 weeks — the maximum. At 10+ years, only 12 weeks. The rationale is that very long-tenured employees have stronger prospects of redeployment. Your enterprise agreement or contract may provide more — always check it before accepting any offer.
Is redundancy the same in NSW, VIC, QLD and WA?
Yes. Redundancy pay under the NES is federal law — identical in every state and territory for private sector employees. NSW, VIC, QLD, WA, SA, TAS, ACT and NT all use the same Fair Work table. State does not change the entitlement amount.
Is any part of redundancy pay tax-free?
Yes — for genuine redundancies. The 2025–26 tax-free limit is $13,100 + $6,552 per completed year of service. The amount above this is taxed as an Employment Termination Payment at a concessional rate of 32% (including Medicare levy) up to the ETP cap. Voluntary resignations do not attract the tax-free threshold. Use the Tax tab above or see our full tax on redundancy guide.
Are small business employees entitled to redundancy pay?
Generally no. Employers with fewer than 15 employees are exempt from the NES redundancy provisions. However, if a modern award or enterprise agreement covering the employee includes redundancy pay, those provisions still apply regardless of employer size. Always check your specific award.
Do casual employees get redundancy pay?
No. Casual employees are excluded from the NES redundancy entitlement because they don’t have guaranteed ongoing employment. Only permanent employees (full-time and part-time) who have completed at least 12 months of continuous service qualify for NES redundancy pay.
Does redundancy pay include annual leave and long service leave?
No — redundancy pay is the NES weeks-based payment only. On top of it, you separately receive: all unused annual leave paid out at your ordinary rate, payment in lieu of notice if applicable, and long service leave if you’ve reached the qualifying period. Use the annual leave calculator and long service leave calculator to add those up.
Is redundancy calculated on base salary or total package?
Base rate only. Redundancy weeks are multiplied by the ordinary weekly pay — the base hourly rate × ordinary hours (usually 38/week). Overtime, penalty rates, bonuses, allowances and superannuation contributions are excluded from the calculation.
What is the difference between redundancy and resignation financially?
The difference is significant. Redundancy gives you: NES weeks × weekly pay (tax-free up to the ATO limit) + unused annual leave + notice pay + long service leave if eligible. Resignation gives you: unused annual leave + notice pay (if you work it) — no redundancy payment, no tax-free threshold. See our full comparison guide: Redundancy vs Resignation — The Financial Difference.
When must redundancy pay be paid?
Redundancy pay must be paid on or before the employee’s last day of employment — it forms part of the final pay. If an employer fails to pay redundancy when owed, the employee can make a complaint to the Fair Work Ombudsman (call 13 13 94) or lodge an underpayment claim through the Fair Work Commission. Unpaid redundancy can attract penalties against the employer.
Estimates only — not legal or tax advice. This calculator applies the NES Fair Work table and 2025–26 ATO genuine redundancy tax limits. Individual entitlements may be affected by enterprise agreements, modern awards, employment contracts or specific circumstances. For advice on your specific situation, contact the Fair Work Ombudsman (13 13 94) or a qualified workplace relations professional. Tax estimates should be verified with a registered tax agent.