Redundancy · Calculator

Redundancy Payout Calculator Australia

How many weeks of redundancy pay do you get, and how much? Calculate your NES (Fair Work) redundancy pay and minimum notice entitlement by years of service — before tax.

NES s119 scaleCoverage checkSmall-business exceptions

Already know your payout amount and just need the tax? Use the Redundancy Tax Calculator for the tax-free limit and ETP breakdown.

Been with your employer 5+ years? Don't forget to check your Long Service Leave Calculator entitlement — it's separate from your NES redundancy pay.

Your final pay also includes unused annual leave — with 17.5% loading if your award provides it. Estimate it with the Annual Leave Loading Calculator.

01INPUTS

Use this for casual, fixed-term/project/seasonal, specified training, apprentice, serious-misconduct, transfer-of-business or industry-specific redundancy arrangements.

Enter decimals for partial years (for example, 2.5). NES bands use the service period; the ATO tax-free formula uses completed full years only.

Ordinary hours at base rate — excludes bonuses, loadings, allowances, overtime and penalty rates

02RESULTS
Estimated NES payout$19,500.00
Breakdown
Redundancy Pay10 wks — $15,000.00
Notice (paid in lieu)3 wks — $4,500.00
Total Weeks13 wks
Potential tax-free comparison: the ATO limit is $47,603.00 for 5 completed full years. This estimate contains $19,500.00 of NES redundancy pay plus selected notice in lieu; up to $19,500.00 is within the numerical limit. Notice only forms part of a genuine redundancy payment when it would not be expected on voluntary termination, and the full legal classification must still be confirmed. See the Redundancy Tax Calculator for the full tax breakdown.

These are NES statutory minimums. Awards, enterprise agreements and employment contracts can provide more.

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NES redundancy pay by years of service

Redundancy pay under Fair Work Act s119 is paid at your base rate for ordinary hours — it excludes bonuses, loadings, allowances, and overtime or penalty rates.

Continuous ServiceRedundancy Pay
Under 1 year 0 weeks
1 year – under 2 years 4 weeks
2 years – under 3 years 6 weeks
3 years – under 4 years 7 weeks
4 years – under 5 years 8 weeks
5 years – under 6 years 10 weeks
6 years – under 7 years 11 weeks
7 years – under 8 years 13 weeks
8 years – under 9 years 14 weeks
9 years – under 10 years 16 weeks
10 years or more 12 weeks

The 16-to-12-week change at 10 years comes directly from the statutory s119 table. Awards or agreements with an industry-specific scheme may use different entitlements.

Minimum notice period

Under Fair Work Act s117, your employer must give you this much notice of termination (or pay you in lieu of it). Add one extra week if you are over 45 years old and have at least 2 years' continuous service.

Continuous ServiceMinimum Notice
1 year or less 1 week
More than 1 year – 3 years 2 weeks
More than 3 years – 5 years 3 weeks
More than 5 years 4 weeks
Any of the above, if older than 45 with 2+ years' service +1 week
Small business employers

Employers with fewer than 15 employees are generally exempt from the NES redundancy pay requirement. Count the employees being made redundant, other full- and part-time employees, regular and systematic casuals, and employees of associated entities.

Fair Work identifies exceptions for some bankrupt or liquidating employers that became small through downsizing, as well as industry-specific redundancy schemes. Confirm the s121 insolvency/downsizing exception before turning it on; use the Fair Work calculator or your award for an industry scheme.

Worked examples

6 years of service, age 47, $1,800/week base pay

Redundancy pay 11 weeks — $19,800
Notice (over-45 bonus applies) 5 weeks — $9,000
Total payout 16 weeks — $28,800
Potential genuine-redundancy amount $28,800
Tax-free limit (2026-27) $54,404

12 years of service, age 47, $2,200/week base pay

Redundancy pay (10+ yr tier) 12 weeks — $26,400
Notice (over-45 bonus applies) 5 weeks — $11,000
Total payout 17 weeks — $37,400
Potential genuine-redundancy amount $37,400
Tax-free limit (2026-27) $95,210

In both examples the NES redundancy-pay component is below the genuine-redundancy tax-free limit. Payment in lieu of notice can also qualify when it forms part of a genuine redundancy payment and would not be expected on voluntary termination; confirm its classification from the employer's payment statement. See the Redundancy Tax Calculator for the tax breakdown.

FAQ
How many weeks of redundancy pay am I entitled to?
Under the National Employment Standards (NES), redundancy pay scales with continuous service: 4 weeks at 1 year, rising to 16 weeks at 9 years, then dropping to 12 weeks at 10+ years. Under 1 year of service gets no NES redundancy pay. This calculator applies the full s119 table.
Why does redundancy pay drop to 12 weeks after 10 years?
This is the statutory table in Fair Work Act s119: 9 years to under 10 years receives 16 weeks, while 10 years or more receives 12 weeks. The calculator applies that table directly and does not infer a separate policy reason.
Do employees of small businesses get redundancy pay?
Generally no. Employers with fewer than 15 employees are usually exempt from NES redundancy pay, but Fair Work identifies exceptions for some employers that become small through insolvency-related downsizing and for industry-specific award or agreement schemes. The calculator can apply the s121 downsizing exception when you confirm it; industry schemes need separate checking. Minimum notice generally remains separate.
When should I stop using the standard NES estimate?
Use the special-rule gate for casual employment, a specified term, task or season, a time-limited training arrangement, apprenticeship, serious misconduct, transfer-of-business arrangements, or an industry-specific redundancy scheme. Fair Work Act sections 121 to 123 apply different exclusions and some awards replace the NES redundancy scale, so a standard dollar result could be misleading.
What pay rate is used to calculate redundancy pay?
Redundancy pay uses the employee's base rate for ordinary hours, excluding bonuses, loadings, allowances, overtime and penalties. Payment in lieu of notice is different: it uses the employee's full rate of pay for the hours they would have worked, including those additional amounts.
Is my redundancy payout tax-free?
A genuine redundancy payment is tax-free up to a limit of $13,598 plus $6,801 for each completed year of service (2026-27 rates). Amounts above this limit are generally taxed as an Employment Termination Payment (ETP). Use the Redundancy Tax Calculator to work out the exact tax on your payout.
Can my award, agreement or contract give me more than the NES minimums?
Yes. The figures on this page are NES statutory minimums under the Fair Work Act. Many awards, enterprise agreements, and individual employment contracts provide more generous redundancy schemes — always check your award or agreement, as it can only improve on (not reduce below) the NES.

Tax Accuracy & Sources

Reviewed: March 2026 · Tax year: 2026-27

Calculates standard NES (Fair Work Act) minimum redundancy pay and minimum notice entitlements, including the s121 small-business downsizing exception when confirmed. Special employment, transfer-of-business and industry-scheme cases are gated because their rules differ. The tax comparison only shows the numerical 2026-27 limit and does not determine whether a payment legally qualifies as a genuine redundancy payment.

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