How your final pay is calculated
When your employment ends, your final pay can include several separate entitlements. Here's what this calculator uses, and where each figure comes from.
NES redundancy pay scale
Minimum redundancy pay under the National Employment Standards for employers with 15+ employees. Based on completed years of continuous service.
| Completed years of service | Weeks of base pay |
|---|
| At least 1 but less than 2 | 4 |
| At least 2 but less than 3 | 6 |
| At least 3 but less than 4 | 7 |
| At least 4 but less than 5 | 8 |
| At least 5 but less than 6 | 10 |
| At least 6 but less than 7 | 11 |
| At least 7 but less than 8 | 13 |
| At least 8 but less than 9 | 14 |
| At least 9 but less than 10 | 16 |
| 10 or more | 12 |
The amount drops to 12 weeks at 10+ years because long service leave typically applies by that point. Awards, enterprise agreements or your contract can provide more than these minimums.
Common questions
How much redundancy pay am I entitled to?
Under the National Employment Standards, redundancy pay runs from 4 weeks (after one completed year) up to 16 weeks (after nine years), then settles at 12 weeks once you reach ten or more years. Your award, enterprise agreement or contract may set a higher figure, so always check those first.
Is redundancy pay taxed in Australia?
Part of it is usually tax-free. A genuine redundancy payment is exempt up to an ATO limit — for the 2026–27 financial year that's a base of $13,598 plus $6,801 for each completed year of service. Anything above the limit is treated as an employment termination payment (ETP) and taxed at a concessional rate rather than your normal marginal rate. Unused annual leave and payment in lieu of notice are taxed separately and aren't included in the tax-free amount.
How much notice am I owed?
The NES minimum is one to four weeks depending on your length of service, with an extra week if you're over 45 and have at least two years' continuous service. Your employer can require you to work it or pay it out in lieu.
Do small businesses have to pay redundancy?
Employers with fewer than 15 employees are generally exempt from NES redundancy pay, though some awards, agreements or contracts still create an entitlement. Notice and unused leave still apply regardless of employer size.
What isn't included in this estimate?
This tool doesn't calculate long service leave (which is set by each state and territory), superannuation, bonuses or commissions, award-specific allowances, or your exact PAYG withholding across the full financial year. Treat the numbers as a starting point, then confirm against your award, agreement, contract and current Fair Work and ATO guidance.