Skip to main content
austax.tools

Unfair Dismissal Compensation Calculator Australia

See the most the Fair Work Commission can order if a dismissal is found unfair, and check whether the minimum employment period and the high income threshold let you apply.

Your annual rate of earnings before tax, including any amounts the Fair Work Act counts as earnings. Super and some other payments are left out.

Your average weekly pay in the 26 weeks before the dismissal. Leave blank to use annual earnings divided by 52.

Continuous service with the employer up to the dismissal. Casual service only counts if it was regular and systematic.

The cap uses the high income threshold in force immediately before the dismissal.

Maximum compensation (cap)$39,000
26 weeks of pay$39,000.00
Half the high income threshold$95,050.00

The cap is the lesser of the two amounts, here 26 weeks of pay. It is a ceiling, not an estimate of what the Commission would order.

Minimum employment period (6 months)Met
High income threshold$190,100
Excluded by the high income thresholdNo
Meets both testsYes

General information only. Eligibility also depends on other matters, such as whether the employer is in the national system and whether the dismissal was unfair. The Fair Work Commission decides any compensation.

Share
Edit inputs ↑

Using the result

The cap is a ceiling. The Commission first considers reinstatement, can order compensation only for lost income, and can reduce it if the employee suffered no financial loss or deserves less because of misconduct. It works the amount out under section 392 of the Fair Work Act. Most claims that succeed or settle are well below the cap.

An application must be lodged within 21 days after the dismissal took effect. Read the Commission's pages on unfair dismissal, compensation and the high income threshold.

Weekly pay in the formula is the remuneration for the 26 weeks before the dismissal, and this page estimates it from what you enter. Unpaid leave and other adjustments in the Act can change it.

Unfair dismissal questions

What is the maximum compensation for unfair dismissal in Australia?

The Fair Work Commission cannot order more than the lesser of 26 weeks of the employee's pay and half the high income threshold. For a dismissal taking effect from 1 July 2026 the second figure is $95,050. For a dismissal from 1 July 2025 to 30 June 2026 it was $91,550.

How much compensation do people usually get?

Well below the cap. The Commission says the median is between 5 and 7 weeks' pay and that less than 0.4% of applicants receive the maximum. Many claims settle at conciliation, and the amount depends on the facts. The Commission decides any compensation and may reduce it, for example for misconduct.

Who can make an unfair dismissal claim?

An employee who has served the minimum employment period, which is 6 months, or 12 months if the employer has fewer than 15 employees. They must also be covered by a modern award or enterprise agreement, or earn less than the high income threshold. The employer must be in the national system, and casual employees must have worked regularly and systematically with a reasonable expectation of continuing.

What is the high income threshold?

It is $190,100 from 1 July 2026, indexed each 1 July. It was $183,100 before that. An employee earning at or above it is protected only if a modern award covers them or an enterprise agreement applies to them.

How long do I have to lodge a claim?

21 days after the dismissal took effect. The Commission can allow a later application only in exceptional circumstances. See the Commission's unfair dismissal pages for how to apply.

Does the cap include notice pay or other entitlements?

No. This calculator covers only the compensation cap. Notice, accrued leave and redundancy pay are separate entitlements. See the final pay calculator and the redundancy payout calculator.

Tax Accuracy & Sources

Reviewed: 6 November 2026 · Tax year: 2026-27

Applies the compensation cap in section 392 and the eligibility tests in sections 382 and 383 of the Fair Work Act to the figures you enter. It does not say whether a dismissal was unfair, whether your employer is in the national system or what the Commission would order. This is general information, not advice about a claim.

Related calculators

Most searched ↑↓ navigate · ⏎ open