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Redundancy Pay in Victoria (VIC) 2026 — Your Rights & Entitlements

Last updated: March 2026

Redundancy pay in Victoria 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, VIC has specific considerations. Victorian public sector employees are covered by the Victorian Public Service Enterprise Agreement, which may provide more generous redundancy terms than 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 Victorian Civil and Administrative Tribunal (VCAT) for resolution.

Key Facts: Redundancy Pay in VIC

  • ✓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 Victorian Civil and Administrative Tribunal (VCAT) handles state-level industrial disputes in VIC
  • ✓VIC 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 Victoria?▼
Redundancy pay in Victoria 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 VIC?▼
You can lodge a complaint with the Fair Work Ombudsman (13 13 94) for national system employers. For state system matters, contact the Victorian Civil and Administrative Tribunal (VCAT). If you're a VIC government employee, your enterprise agreement may have its own dispute process.
Do VIC government employees get different redundancy pay?▼
Yes. Victorian public sector employees are covered by the Victorian Public Service Enterprise Agreement, which may provide more generous redundancy terms than the NES. Check your enterprise agreement or contact your HR department for specific details.
Is redundancy pay taxed in Victoria?▼
Genuine redundancy payments in all Australian states, including Victoria, 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

NSWNew South WalesQLDQueenslandWAWestern AustraliaSASouth AustraliaTASTasmaniaACTAustralian Capital TerritoryNTNorthern Territory

More Workplace Rights in VIC

Notice PeriodNotice Period rights in VictoriaLong Service LeaveLong Service Leave rights in VictoriaUnfair DismissalUnfair Dismissal rights in VictoriaWorkers CompensationWorkers Compensation rights in VictoriaPublic HolidaysPublic Holidays rights in Victoria

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.