After 20 years of continuous service, you are entitled to 12 weeks’ redundancy pay under the NES (Fair Work Act 2009, s119). This is based on your ordinary base rate of pay, excluding overtime and bonuses.
Redundancy Entitlement
12 weeks
Notice Period
4 weeks
Total Weeks Owed
16 weeks
Example Redundancy Payouts After 20 Years
These examples show your redundancy pay entitlement based on 12 weeks at common salary levels. Redundancy pay is calculated on your base weekly rate (annual salary ÷ 52).
Annual Salary
Weekly Pay
Weeks
Redundancy Pay
+ Notice Pay
Total
$60,000.00
$1,153.85
12
$13,846.15
$4,615.38
$18,461.54
$80,000.00
$1,538.46
12
$18,461.54
$6,153.85
$24,615.38
$100,000.00
$1,923.08
12
$23,076.92
$7,692.31
$30,769.23
$120,000.00
$2,307.69
12
$27,692.31
$9,230.77
$36,923.08
Notice pay shown is for the minimum 4-week notice period. Employees aged 45+ with 2+ years of service receive an additional week of notice.
Notice Period After 20 Years
In addition to redundancy pay, you are entitled to 4 weeks’ notice (or payment in lieu) under the NES. Employees aged 45 or over with at least 2 years of service receive an additional week.
Your employer must give you notice before your employment ends, or pay you for the notice period. This is separate from and in addition to your redundancy pay entitlement.
Note: the NES redundancy scale decreases after 10 years of service (from 16 weeks at 9-10 years to 12 weeks at 10+ years). Your award or enterprise agreement may provide a more generous scale.
Tax on Redundancy Pay
Genuine redundancy payments receive favourable tax treatment in Australia. A portion is tax-free, and the remainder may be concessionally taxed as an Employment Termination Payment (ETP).
The tax-free limit for 2025-26 is $13,100 plus $6,552 for each completed year of service.
After 20 years, your estimated tax-free component is $144,140.00.
Any amount above the tax-free limit is taxed as an ETP at concessional rates (up to 17% below the ETP cap, then at your marginal rate).
These limits apply only to genuine redundancies — not if you were dismissed for misconduct or voluntarily resigned.
Tax treatment of redundancy payments is complex. We recommend using our Redundancy Tax Calculator for a detailed breakdown, or consulting a tax professional.
What to Do Next
1
Check your award or enterprise agreement
Your award may provide more generous redundancy pay than the NES minimum. Use our Award Finder to identify your applicable award.
2
Calculate your full final pay
Redundancy pay is just one component. You may also be owed notice pay, unused annual leave, long service leave, and other entitlements. Use our Final Pay Calculator to get a complete picture.
3
Get legal advice if needed
If you believe your redundancy is not genuine, you have been underpaid, or you want to negotiate a better package, consider contacting the Fair Work Ombudsman or seeking independent legal advice.
Calculate Your Exact Redundancy Payout
Enter your weekly pay below to calculate your redundancy entitlement in dollars.
Under the National Employment Standards (NES s119), an employee with 20 years of continuous service is entitled to 12 weeks' redundancy pay based on their base rate of pay (excluding overtime, bonuses, and allowances).
Is 12 weeks redundancy fair?
12 weeks is the minimum legal entitlement under the NES after 20 years of service. Your award, enterprise agreement, or employment contract may provide more generous redundancy pay. If you believe you've been underpaid, contact the Fair Work Ombudsman or seek legal advice.
Do I get redundancy after 20 years as a casual?
Casual employees are generally not entitled to redundancy pay under the NES, regardless of length of service. However, if you are a long-term casual who has been working a regular pattern of hours, you may have been misclassified and could be entitled to redundancy as a permanent employee. Seek legal advice if you believe this applies to you.
Does redundancy pay include overtime or bonuses?
No. Redundancy pay is calculated on your base rate of pay, which excludes overtime, incentive payments, bonuses, and allowances.
Are small businesses exempt from redundancy pay?
Yes. Businesses with fewer than 15 employees at the time of dismissal are exempt from the NES redundancy pay obligations.
FairWork Mate is an independent commercial service. We are not affiliated with, endorsed by, or associated with the Fair Work Ombudsman, the Fair Work Commission, or any Australian Government agency. Content is 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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