Redundancy pay calculator

If your job is made redundant, the National Employment Standards (NES) set a minimum redundancy pay based on your years of continuous service.

Enter your years of service and your weekly base pay. You also see how much of a genuine redundancy payment is tax-free.

How it's calculated

The NES table gives a number of weeks for your completed years of service: 4 weeks after 1 year, rising to 16 weeks between 9 and 10 years, and 12 weeks from 10 years.
Each week is paid at your base pay rate for your ordinary hours, without bonuses, loadings, allowances, overtime or penalty rates.
For a genuine redundancy, a tax-free amount of $13,598 plus $6,801 for each complete year of service applies this income year.

An example

After 5 years of service on $1,500 a week, the minimum redundancy pay is 10 weeks, or $15,000. All of it is within the tax-free limit.

Frequently asked questions

Why does redundancy pay drop after 10 years?

The NES table gives 12 weeks for 10 years or more, fewer than the 16 weeks for 9 years. Fair Work has a library article on redundancy pay after 10 years of service, and your award or agreement may give more.

Do small businesses have to pay redundancy?

Most small business employers, with fewer than 15 employees, don't have to pay redundancy pay under the NES.

Do I also get notice?

Yes. Your employer still has to give you notice of termination, or pay in lieu of notice, when your job is made redundant.

What else is paid when I leave?

Outstanding entitlements, including unused annual leave and long service leave, are paid out as well.

Key terms

Continuous service: How long you have worked for your employer. Unpaid leave does not count towards it, but it does not break it either.
Genuine redundancy: A redundancy that meets the ATO conditions. Part of the payment is tax-free up to a limit set each income year.