Redundancy pay calculator
Your minimum redundancy pay under the National Employment Standards, and how much of it is tax-free.
NES redundancy pay scale
| Continuous service | Redundancy pay |
|---|---|
| At least 1 but less than 2 years | 4 weeks |
| At least 2 but less than 3 years | 6 weeks |
| At least 3 but less than 4 years | 7 weeks |
| At least 4 but less than 5 years | 8 weeks |
| At least 5 but less than 6 years | 10 weeks |
| At least 6 but less than 7 years | 11 weeks |
| At least 7 but less than 8 years | 13 weeks |
| At least 8 but less than 9 years | 14 weeks |
| At least 9 but less than 10 years | 16 weeks |
| At least 10 years | 12 weeks |
Awards, enterprise agreements and contracts can give more than the NES minimum. Notice pay, unused annual leave and long service leave are paid separately.
Questions
How many weeks of redundancy pay am I entitled to?
Under the National Employment Standards it depends on continuous service: 4 weeks after 1 year, rising to 16 weeks at 9–10 years, then 12 weeks from 10 years (long service leave usually applies from then). Your award, agreement or contract may give more.
Why does redundancy pay drop at 10 years?
The NES scale falls from 16 to 12 weeks at 10 years because most employees become entitled to long service leave around then.
Is redundancy pay taxed?
A genuine redundancy payment is tax-free up to $13,598 plus $6,801 for each completed year of service in 2026–27. Amounts above that are taxed as an employment termination payment.
Do small businesses have to pay redundancy?
No. Employers with fewer than 15 employees are generally exempt from NES redundancy pay, and casual employees are not entitled to it.
What counts as a week’s pay?
Your base rate of pay for ordinary hours, excluding overtime, penalty rates, allowances and bonuses.
Sources
Checked 26 September 2026. OneCalcs is independent and not affiliated with the ATO or Fair Work.