How much redundancy pay am I entitled to in Australia?

Under the National Employment Standards (NES), redundancy pay ranges from 4 weeks' pay (1–2 years of service) up to 16 weeks' pay (9–10 years of service). After 10 years, the entitlement gradually reduces. Your redundancy pay is calculated on your base rate of pay for ordinary hours worked.

Do small businesses have to pay redundancy in Australia?

No. Under the Fair Work Act, employers with fewer than 15 employees at the time of dismissal are classified as small businesses and are exempt from the NES redundancy pay obligations. However, some awards or enterprise agreements may still require redundancy payments.

Is redundancy pay taxed in Australia?

Genuine redundancy payments receive special tax treatment from the ATO. A portion of the payment is tax-free up to a limit based on your years of service. The tax-free amount consists of a base limit plus an amount for each completed year of service. Any amount above the tax-free limit is taxed at concessional rates.

What is the maximum redundancy pay under the NES?

The maximum redundancy pay under the NES is 16 weeks' base pay, which applies to employees with 9 to 10 years of continuous service. For employees with more than 10 years of service, the entitlement decreases — for example, 12 weeks for those with more than 10 years of service.

Redundancy Pay Calculator

Calculate redundancy pay entitlements under the National Employment Standards, including small business exemptions.

Last verified: 2 August 2026

Redundancy pay ranges from 4 weeks' pay (1 year of service) to 16 weeks' pay (9-10 years). Businesses with fewer than 15 employees are exempt. Use the calculator below to see your exact entitlement based on your salary and years of service.

NES redundancy pay weeks by years of service — 4 weeks at 1–2 years peaking at 16 weeks at 9–10 years, dropping to 12 weeks for 10+ years

Redundancy pay by state

The NES redundancy scale is national, but public-sector rules, long-service interactions and support services differ by state:

Redundancy pay NSW Redundancy pay VIC Redundancy pay QLD Redundancy pay WA Redundancy pay SA Redundancy pay TAS

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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.

Redundancy Pay Calculator

Redundancy pay by state

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