Redundancy Pay Calculator (Australia)
Updated November 2026 · Free · No sign-up
Calculate redundancy pay in Australia — the NES scale (4-16 weeks by tenure), the tax-free limit that shelters most packages, notice on top, and the small-business exemption.
Quick answer: NES redundancy pay runs from 4 weeks (1-2 years of service) up to 16 weeks (9-10 years) — note it DECREASES to 12 weeks past 10 years — plus notice (1-4 weeks, +1 if over 45). Most genuine redundancy payments are tax-free up to an indexed base + per-year amount.
The NES Redundancy Scale
| Continuous service | Redundancy pay |
|---|---|
| 1 - 2 years | 4 weeks |
| 2 - 3 | 6 weeks |
| 3 - 4 | 7 weeks |
| 4 - 5 | 8 weeks |
| 5 - 6 | 10 weeks |
| 6 - 7 | 11 weeks |
| 7 - 8 | 13 weeks |
| 8 - 9 | 14 weeks |
| 9 - 10 | 16 weeks (peak) |
| 10+ | 12 weeks — yes, it drops (the LSL interaction rationale) |
Notice stacks on top: 1 week (<1 yr) / 2 (1-3) / 3 (3-5) / 4 (5+), plus 1 extra for over-45s with 2+ years — worked or paid in lieu.
Worked Examples
Example 1. 7 years, $1,700/week, age 47: redundancy 13 × $1,700 = $22,100 + notice 5 weeks (4+1) = $8,500 → $30,600 package floor, plus unused leave + loading + pro-rata LSL where applicable.
Example 2 — the 10-year dip. 9.5 years = 16 weeks; 10.5 years = 12 weeks. The cliff exists because long-service leave was assumed to compensate — awards/agreements often override it upward; check yours.
Example 3 — tax-free shelter. Genuine redundancy payments are tax-free up to an indexed cap (a base amount + per-year amount, around $13k + $6.5k/year — verify the current year's figures): the Example-1 package sits comfortably tax-free; amounts above become an ETP at concessional rates.
Exemptions and Edges
- Small business (<15 employees): exempt from NES redundancy pay (notice still owed) — some awards restore it; check industry instruments.
- Genuine vs not: the role must disappear — re-hiring for the same job invites unfair dismissal claims; redeployment offers must be genuinely considered.
- Acceptable alternative employment: employers can apply to reduce redundancy pay when arranging comparable roles elsewhere.
- Casuals and <1 year: no NES redundancy pay.
The Full Exit Package Checklist
- Redundancy pay (this scale, or better under your agreement)
- Notice or pay in lieu (+45s bonus week)
- Unused annual leave + 17.5% loading
- Pro-rata long service leave (state rules from 5-7 years)
- Super on all ordinary-time components
- Tax: genuine-redundancy tax-free cap first, ETP concessional rates above it — get the PAYG summary split right
Centrelink and Next Steps
Redundancy payouts trigger an "income maintenance period" delaying JobSeeker — the package's weeks of pay block benefits for roughly those weeks. Budget the runway, and remember the negotiation layer: NES is the floor; enhanced packages (especially in restructures wanting volunteers) commonly add 50-100%.
Frequently Asked Questions
How much redundancy pay do I get in Australia?
NES scale: 4 weeks at 1-2 years rising to 16 weeks at 9-10 years, then dropping to 12 weeks past 10 — plus 1-4 weeks notice (+1 for over-45s with 2+ years).
Why does redundancy pay drop after 10 years?
The NES assumed long service leave compensates long-tenured workers — the 16→12 week cliff. Awards and agreements often override it; check your instrument.
Is redundancy pay tax-free?
Genuine redundancy is tax-free up to an indexed cap (base + per-year amount, indexed annually — verify current figures); the excess is an ETP at concessional rates.
Do small businesses pay redundancy in Australia?
Employers with fewer than 15 employees are NES-exempt from redundancy pay (notice still applies) — unless an award or agreement restores it.
What else is owed in a redundancy?
Notice, unused annual leave with loading, pro-rata long service leave where thresholds are met, and super on ordinary-time components.
Does a redundancy payout delay Centrelink?
Yes — an income maintenance period roughly matching the weeks of payout delays JobSeeker; plan the cash runway.
✓ Formula verified • Last updated: November 3, 2026