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: 1 July 2025

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.

Redundancy Pay Calculator: Work Out Your Exact Payout

Use our free redundancy pay calculator to work out exactly how much redundancy pay you're entitled to in Australia. Covers NES minimums, service periods, tax-free thresholds, and what to do if your employer won't pay.

Redundancy Pay: 4-16 Weeks Owed

You're owed 4 to 16 weeks' pay depending on how long you've worked. Enter your salary and years to see your exact payout.

Redundancy Pay After 15 Years: The NES Rule That Catches People Out

Did you know redundancy pay DROPS after 10 years under the NES? After 15 years of service, you only get 12 weeks — not 16. Learn why, what it means in dollars, and how to negotiate more.

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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.

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Redundancy Pay Calculator

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