NSW Public Service Redundancy Calculator
Estimate a NSW public service voluntary or forced redundancy under M2025-11, with the incentive, notice pay and tax-free amount.
NSW public service voluntary redundancy pays 3 weeks per year of service (maximum 39 weeks, pro-rated by quarter), an incentive of up to 8 weeks' pay and 4 weeks' notice (5 if 45+ with 5+ years), under M2025-11 section 6.2.1.
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M2025-11 redundancy payments
M2025-11 applies to ongoing, non-executive government sector employees. It does not cover casual or temporary employees, senior executives or statutory office holders.
| Continuous service | VR incentive | Forced: under 45 | Forced: 45 or over |
|---|---|---|---|
| Less than 1 year | 2 weeks | Nil | Nil |
| 1 to under 2 years | 4 weeks | 4 weeks | 5 weeks |
| 2 to under 3 years | 6 weeks | 7 weeks | 8.75 weeks |
| 3 to under 4 years | 8 weeks | 10 weeks | 12.5 weeks |
| 4 to under 5 years | 8 weeks | 12 weeks | 15 weeks |
| 5 to under 6 years | 8 weeks | 14 weeks | 17.5 weeks |
| 6 years or more | 8 weeks | 16 weeks | 20 weeks |
Voluntary redundancy adds 3 weeks per year of service (maximum 39) to the incentive, plus notice. Forced redundancy adds an extra 4 weeks (under 45) or 5 weeks (45 or over) to the table figure. Example: voluntary redundancy after 10 years at $94,900 a year ($1,820 a week): 30 weeks $54,600 + incentive 8 weeks $14,560 + notice 4 weeks $7,280 = $76,440, all within the $81,608 tax-free limit.
NSW public servants are in the NSW state industrial relations system, so the Fair Work Act's NES redundancy scale does not legally apply. The calculator shows it for reference only.
Sources: Premier's Memorandum M2025-11 NSW Government Workforce Mobility Placement and Employee Transition Policy (arp.nsw.gov.au, issued 9 December 2025, updated 13 January 2026), policy sections 3.2.1, 6.2 and 6.4; ATO "Genuine redundancy payments" (updated 5 June 2026). Read 26 September 2026.
Frequently asked questions
How is NSW public service voluntary redundancy calculated?
Under Premier's Memorandum M2025-11 (issued 9 December 2025), voluntary redundancy pays 4 weeks' notice or pay in lieu (plus 1 week if you are 45 or over with 5 or more completed years), 3 weeks' pay per year of continuous service up to 39 weeks with incomplete years pro-rated by quarter, and an incentive of 2, 4, 6 or 8 weeks' pay depending on service (policy section 6.2.1).
Has M2011-11 been replaced?
Yes. M2025-11 NSW Government Workforce Mobility Placement and Employee Transition Policy (issued 9 December 2025) replaced M2011-11 Changes to the Management of Excess Employees and M2023-06. Under M2025-11 you go through a placement period of up to 40 business days before you can be declared excess, then have 10 business days to accept voluntary redundancy; if you decline, a 20-business-day retention period follows.
What do I get if I decline voluntary redundancy and am made forcibly redundant?
Forced redundancy pays a scale by service and age: 4 to 16 weeks if under 45, or 5 to 20 weeks if 45 or over, plus an additional 4 weeks (under 45) or 5 weeks (45 or over) (M2025-11 policy section 6.4.4). For most people with more than a few years' service this is well below the voluntary offer.
What is the maximum NSW public service redundancy payout?
39 weeks' redundancy pay (reached at 13 years) plus the 8-week incentive and 4 or 5 weeks' notice — up to 52 weeks' pay in total, before accrued leave.
Can I be re-employed in NSW government after a redundancy?
Not within the period your redundancy payment covers unless you repay the matching part of the redundancy and incentive payments. Notice pay is not repayable. This applies to employment, contracting and consulting (M2025-11 policy s3.2.1 and s6.2.4; GSE Regulation clause 24).
Is NSW public service redundancy tax-free?
For 2026-27 the first $13,598 plus $6,801 per completed year of service of a genuine redundancy payment is tax-free, including pay in lieu of notice and the incentive. The rest is taxed at 32% under 60 or 17% at 60 or older, including the Medicare levy.
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Redundancy pay is worked out from your salary. Current rates, with their effective dates and sources:
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