Redundancy Calculator Australia

Under the National Employment Standards, redundancy pay is 4 to 16 weeks of your base pay, depending on your years of continuous service. For a genuine redundancy in 2026-27, the first $13,598 plus $6,801 per complete year of service is tax-free.

Redundancy & Severance Calculator

Calculate your redundancy payout including NES entitlements, leave payouts, and tax implications.

Annual Salary

Age

Years of Service

Months of Service

Unused Annual Leave (days)

Unused Long Service Leave (days)

Leave Loading Rate (%)

Tax Year

Genuine Redundancy

ETP Amount Beyond NES

Estimated Net Payout

$20,264

After estimated tax of $1,844

NES Redundancy Entitlement

Redundancy Weeks10 weeks

NES Redundancy Pay$16,346

Leave Payouts

Annual Leave Payout$4,904

Leave Loading$858

Long Service Leave Payout$0

Genuine Redundancy Tax-Free Component

Tax-Free Limit$47,603

Tax-Free Amount$16,346

Tax Summary

Taxable Amount$0

Estimated Tax$1,844

Estimated Net Payout$20,264

Payout Breakdown

Component	Amount
NES Redundancy Pay (10 weeks)	$16,346
Annual Leave Payout	$4,904
Leave Loading	$858
Gross Payout	$22,108
Tax-Free Amount	-$16,346
Taxable Amount	$0
Estimated Tax	-$1,844
Estimated Net Payout	$20,264

How much redundancy pay will I get?

Your minimum redundancy pay comes from the NES scale below. It is paid at your base rate for ordinary hours, so overtime, penalty rates and bonuses aren't included. Your award, enterprise agreement or contract may give you more.

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

Pay drops from 16 to 12 weeks at 10 years because long service leave usually becomes available then. Casual employees, employees with less than 12 months' service, and employees of small businesses with fewer than 15 employees generally aren't entitled to NES redundancy pay.

Genuine redundancy tax-free limit for 2026-27

If your job no longer exists and you leave before retirement age, the ATO treats your redundancy payment as tax-free up to $13,598 plus $6,801 for each complete year of service.

Complete years of service	Tax-free limit (2026-27)
1 year	$20,399
5 years	$47,603
10 years	$81,608
20 years	$149,618

Anything above the limit is an employment termination payment, taxed at a maximum of 17% from preservation age or 32% before it (including the Medicare levy), up to the $270,000 ETP cap.

Worked example

Sam earns $85,000 a year and is made genuinely redundant after 6 years and 4 months. The NES gives 11 weeks of pay: $85,000 ÷ 52 × 11 = $17,981.

Sam's tax-free limit uses complete years only: $13,598 + 6 × $6,801 = $54,404. The whole redundancy payment is under the limit, so none of it is taxed. Any unused annual leave is paid out on top and taxed at up to 32%.

To see what your pay looks like after you find a new role, try the pay calculator, or use the leave loading calculator to check the loading on your leave payout.

Frequently Asked Questions

What are the NES redundancy entitlements in Australia?

Under the National Employment Standards (NES), redundancy pay is based on years of continuous service. Employees with 1-2 years get 4 weeks, 2-3 years get 6 weeks, 3-4 years get 7 weeks, 4-5 years get 8 weeks, 5-6 years get 10 weeks, 6-7 years get 11 weeks, 7-8 years get 13 weeks, 8-9 years get 14 weeks, 9-10 years get 16 weeks, and 10+ years get 12 weeks. Employees with less than 12 months of service are generally not entitled to redundancy pay.

What is the tax-free amount for a genuine redundancy?

For 2026-27, the tax-free limit for a genuine redundancy is $13,598 plus $6,801 for each complete year of service. Partial years don't count. The tax-free component only applies to the redundancy payment itself, not to leave payouts or other entitlements.

How are Employment Termination Payments (ETPs) taxed?

The part of a genuine redundancy payment above the tax-free limit is an employment termination payment (ETP). Up to the ETP cap ($270,000 for 2026-27) it is taxed at a maximum of 17% if you have reached preservation age, or 32% if you haven't, including the Medicare levy. Amounts above the cap are taxed at 47%.

How are unused leave payouts taxed on redundancy?

When you leave because of a genuine redundancy, unused annual leave and long service leave accrued after 17 August 1993 are taxed at a maximum of 32% including the Medicare levy. Leave loading may also be payable on annual leave depending on your award or agreement.