Redundancy Pay Calculator Australia 2026

Work out your minimum redundancy pay under the National Employment Standards (NES), your notice period and how much is tax-free in 2026–27. Someone with 6 years of service on $1,500 a week is owed at least 11 weeks’ pay ($16,500), all of it tax-free because the genuine redundancy limit is $54,404.

Redundancy Pay Calculator

NES redundancy pay, notice and the 2026–27 tax-free limit · Updated 12 October 2026

Years of continuous service

years

Use decimals for part years, e.g. 6.5

Weekly base pay

Ordinary hours, excluding overtime and penalty rates

Your age

years

Redundancy payment offered (if more)

Leave at 0 to use the NES minimum

Redundancy pay

–

NES redundancy pay: –
Minimum notice (or pay instead): –
Tax-free limit (genuine redundancy): –
Tax-free part: –
Taxable part (ETP): –
Tax on the taxable part: –
Redundancy pay after tax: –

Assumes a genuine redundancy and an employer with 15 or more employees. Unused annual leave and long service leave are paid and taxed separately.

NES redundancy pay scale

Fair Work Act 2009, section 119
Continuous service	Redundancy pay
Less than 1 year	Nil
1 year but less than 2	4 weeks
2 years but less than 3	6 weeks
3 years but less than 4	7 weeks
4 years but less than 5	8 weeks
5 years but less than 6	10 weeks
6 years but less than 7	11 weeks
7 years but less than 8	13 weeks
8 years but less than 9	14 weeks
9 years but less than 10	16 weeks
10 years or more	12 weeks

Redundancy pay drops to 12 weeks after 10 years because long service leave usually starts around then. Redundancy pay is calculated on your base rate for ordinary hours, not overtime, penalty rates or allowances.

Who doesn't get NES redundancy pay

Employees of small businesses with fewer than 15 employees (counted at the time of the redundancy, including regular casuals and employees of associated entities).
Employees with less than 12 months of continuous service.
Casual employees, employees on fixed-term or task-based contracts, apprentices and trainees, and employees dismissed for serious misconduct.

Tax on redundancy pay in 2026–27

A genuine redundancy payment is tax-free up to $13,598 plus $6,801 for each completed year of service.
Anything above the limit is an employment termination payment (ETP), taxed at 32% if you are under 60, or 17% if you are 60 or older (both include the Medicare levy), up to the $270,000 ETP cap. Above the cap, 47% applies.
Unused annual leave and long service leave are paid out separately with their own tax treatment.

Service	Weekly pay	Payment	Tax-free limit	Tax
1 year	$1,000	$4,000 (NES)	$20,399	$0
6 years	$1,500	$16,500 (NES)	$54,404	$0
3 years, age 50	$3,000	$60,000 (offer)	$34,001	$8,319.68 on $25,999
12 years	$2,000	$80,000 (offer)	$95,210	$0

Notice periods

Add 1 week if you are over 45 and have at least 2 years of service
Continuous service	Minimum notice
1 year or less	1 week
More than 1 year to 3 years	2 weeks
More than 3 years to 5 years	3 weeks
More than 5 years	4 weeks

FAQs

What makes a redundancy genuine?

The job itself must no longer be needed, the employer must follow any consultation obligations in the award or agreement, and it must not have been reasonable to redeploy you. For the tax-free treatment, you must also be under pension age and the payment must be more than you would get by resigning.

Can my employer pay less than the NES?

No, unless the Fair Work Commission has reduced it, for example because the employer found you other acceptable work. Many enterprise agreements give more than the NES.

Related calculators

Sources

Figures current as of 12 October 2026

Each formula is checked against a separate test sheet with at least three worked examples. Results are estimates based on the numbers you enter and the published rules; your actual figures may differ. This is general information, not financial or tax advice.

Spotted a mistake? Contact us and we will fix it and update the date above.