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Redundancy Pay in New South Wales (NSW) 2026 — Your Rights & Entitlements

Last updated: March 2026

Redundancy pay in New South Wales is primarily governed by the National Employment Standards (NES) under the Fair Work Act 2009, which applies to all national system employees across Australia. Under the NES, employees made redundant are entitled to between 4 and 16 weeks' pay based on their length of continuous service.

However, NSW has specific considerations. NSW public sector employees may be covered by the Government Sector Employment Act 2013, which has its own redundancy provisions separate from the NES.

If you believe your redundancy entitlements have not been met, you can lodge a complaint with the Fair Work Ombudsman or apply to the NSW Industrial Relations Commission for resolution.

Key Facts: Redundancy Pay in NSW

  • ✓NES redundancy pay ranges from 4 weeks (1-2 years service) to 16 weeks (9-10 years service)
  • ✓Small businesses (fewer than 15 employees) are exempt from NES redundancy pay
  • ✓The NSW Industrial Relations Commission handles state-level industrial disputes in NSW
  • ✓NSW public sector employees may have different (often more generous) redundancy provisions
  • ✓Redundancy pay is calculated on your base rate of pay for ordinary hours
  • ✓Genuine redundancy payments receive concessional tax treatment from the ATO

Calculate Your Entitlements

Use our free redundancy pay calculator to calculate your specific entitlements based on your circumstances.

Open Redundancy Pay Calculator →

Frequently Asked Questions

How much redundancy pay am I entitled to in New South Wales?▼
Redundancy pay in New South Wales follows the National Employment Standards. You're entitled to 4 weeks' pay for 1-2 years of service, scaling up to 16 weeks for 9-10 years. After 10 years, the entitlement reduces. Small businesses (fewer than 15 employees) are exempt.
Where do I make a redundancy complaint in NSW?▼
You can lodge a complaint with the Fair Work Ombudsman (13 13 94) for national system employers. For state system matters, contact the NSW Industrial Relations Commission. If you're a NSW government employee, your enterprise agreement may have its own dispute process.
Do NSW government employees get different redundancy pay?▼
Yes. NSW public sector employees may be covered by the Government Sector Employment Act 2013, which has its own redundancy provisions separate from the NES. Check your enterprise agreement or contact your HR department for specific details.
Is redundancy pay taxed in New South Wales?▼
Genuine redundancy payments in all Australian states, including New South Wales, receive special tax treatment. A portion is tax-free based on your years of service, with the remainder taxed at concessional rates. This is a federal ATO rule that applies equally across all states.

Redundancy Pay in Other States

VICVictoriaQLDQueenslandWAWestern AustraliaSASouth AustraliaTASTasmaniaACTAustralian Capital TerritoryNTNorthern Territory

More Workplace Rights in NSW

Notice PeriodNotice Period rights in New South WalesLong Service LeaveLong Service Leave rights in New South WalesUnfair DismissalUnfair Dismissal rights in New South WalesWorkers CompensationWorkers Compensation rights in New South WalesPublic HolidaysPublic Holidays rights in New South Wales

General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.