Redundancy pay calculator Australia
Your minimum redundancy pay, the 2026-27 tax-free limit and the tax on the rest.Redundancy pay
$10,500
7 weeks of base pay under the National Employment Standards.
- Tax-free
- $10,500
- Tax withheld
- $0
- You receive
- $10,500
Tax-free limit for 3 completed years in 2026-27: $34,001. Notice pay and unused leave are paid separately and are not included.
NES redundancy pay table
| Continuous service | Redundancy pay |
|---|---|
| At least 1 year but less than 2 | 4 weeks |
| At least 2 years but less than 3 | 6 weeks |
| At least 3 years but less than 4 | 7 weeks |
| At least 4 years but less than 5 | 8 weeks |
| At least 5 years but less than 6 | 10 weeks |
| At least 6 years but less than 7 | 11 weeks |
| At least 7 years but less than 8 | 13 weeks |
| At least 8 years but less than 9 | 14 weeks |
| At least 9 years but less than 10 | 16 weeks |
| At least 10 years | 12 weeks |
Questions about redundancy pay
How much redundancy pay am I entitled to?
Under the National Employment Standards, from 4 weeks' base pay after 1 year of continuous service up to 16 weeks after 9 years. After 10 years it is 12 weeks, because long service leave usually applies. Your award, agreement or contract can give more.
How much redundancy pay is tax-free in 2026-27?
For a genuine redundancy, $13,598 plus $6,801 for each completed year of service. For example, 10 years gives $81,608 tax-free.
How is redundancy pay above the tax-free limit taxed?
It is an employment termination payment. Up to the $270,000 ETP cap, tax of 32% is withheld if you are under 60, or 17% if you are 60 or over, including the Medicare levy. Anything above the cap is taxed at 47%. At 67 or over the payment is not a genuine redundancy, so the lower rate only applies up to $180,000 less your other taxable income for the year.
Do small businesses have to pay redundancy?
Most employers with fewer than 15 employees don't have to pay NES redundancy pay, although an award or agreement may still require it.
Sources and limits
Redundancy pay follows the Fair Work Ombudsman's National Employment Standards table. Tax-free limits and the ETP cap are from the ATO's 2026-27 key superannuation rates and thresholds, and withholding rates from ATO Schedule 11. This is an estimate: check your award or agreement, and see the Fair Work Ombudsman for your situation. For your regular pay, use the pay calculator.