Skip to calculator
SeveranceCalc

🇦🇺Australia Redundancy Pay Calculator

Estimate your redundancy pay under the National Employment Standards (NES). Includes statutory entitlements, concessional tax treatment, and Fair Work guidance.

Free Redundancy Pay Calculator | Australia

Estimate your redundancy package based on Australian employment law, your salary, years of service, and industry

Minimum 0.5 years

A$

Understanding Australian Redundancy Pay

Under the Fair Work Act 2009, the National Employment Standards (NES) set minimum redundancy pay entitlements for employees who have been employed for at least 1 year at businesses with 15 or more employees.

NES Redundancy Pay Scale

Years of ServiceRedundancy Pay
1 - 2 years4 weeks
2 - 3 years6 weeks
3 - 4 years7 weeks
4 - 5 years8 weeks
5 - 6 years10 weeks
6 - 7 years11 weeks
7 - 8 years13 weeks
8 - 9 years14 weeks
9 - 10 years16 weeks (maximum)
10+ years12 weeks

Note: The scale is non-linear. Redundancy pay peaks at 9-10 years, then decreases for 10+ years.

Tax Treatment

Genuine redundancy payments receive concessional tax treatment. A portion of the payment is tax-free, calculated as a base amount plus a per-year amount that the ATO sets annually. Amounts above the tax-free limit are taxed, but may still receive concessional rates through Employment Termination Payment (ETP) rules.

21-Day Unfair Dismissal Deadline

If you believe your termination was unfair, you must lodge an application with the Fair Work Commission within 21 calendar days of your dismissal taking effect. This deadline is strict, and late applications are rarely accepted.

Frequently Asked Questions: Australia Redundancy

Am I entitled to redundancy pay in Australia?
You're entitled to NES redundancy pay if you've been employed for at least 1 year and your employer has 15 or more employees. Small business employees (fewer than 15) are not entitled to NES redundancy pay, but may have entitlements under awards or enterprise agreements.
What is a genuine redundancy?
A genuine redundancy means your employer no longer needs your job to be done by anyone, and they have complied with consultation requirements. Genuine redundancy payments receive concessional tax treatment. If the redundancy is not genuine, you may be able to make an unfair dismissal claim.
How is redundancy pay taxed in Australia?
Genuine redundancy payments include a tax-free component (base amount + per-year amount set by ATO). Amounts above this are taxed as an Employment Termination Payment, which may receive concessional rates depending on your age and the amount.
What about long service leave?
Long service leave is a separate entitlement in Australia. Most states/territories provide long service leave after 7-10 years of continuous service (typically 8.67 weeks for 10 years). Unused long service leave must be paid out on termination.

For educational and informational purposes only, not legal advice. Results are estimates, not a guarantee. Consult a licensed employment attorney about your specific situation.