Australia Redundancy Pay Calculator
Estimate the minimum redundancy pay that may apply under the National Employment Standards (NES). Enter your continuous service and base weekly pay to see the statutory redundancy period and an estimated payment.
Calculate your NES redundancy pay
Use completed continuous service and base weekly pay for ordinary hours.
This calculator provides a general NES estimate only. It does not determine whether a dismissal is a genuine redundancy, whether an award or enterprise agreement provides different redundancy rights, or whether the Fair Work Commission may reduce an NES payment.
How the Australia redundancy pay calculator works
The calculator applies the minimum redundancy-pay scale in section 119 of the Fair Work Act 2009. The relevant number of weeks is determined by the employee’s continuous service and is then multiplied by their base weekly rate for ordinary hours.
For example, an eligible employee with 7 completed years of continuous service falls into the 7-to-less-than-8-year band. The NES scale gives 13 weeks of redundancy pay. If their base weekly pay is $1,200, the calculator estimates 13 × $1,200 = $15,600.
- Completed continuous service with the employer.
- The employee’s base rate of pay for ordinary hours.
- The NES redundancy period that corresponds to the employee’s service band.
- The NES small-business rule where the employer has fewer than 15 employees.
NES redundancy pay table
This is the statutory redundancy scale used by the calculator. The service thresholds are based on the employee’s period of continuous service when employment ends.
| Continuous service | NES redundancy pay |
|---|---|
| Less than 1 year | No NES redundancy pay |
| At least 1 year but less than 2 years | 4 weeks |
| At least 2 years but less than 3 years | 6 weeks |
| At least 3 years but less than 4 years | 7 weeks |
| At least 4 years but less than 5 years | 8 weeks |
| At least 5 years but less than 6 years | 10 weeks |
| At least 6 years but less than 7 years | 11 weeks |
| At least 7 years but less than 8 years | 13 weeks |
| At least 8 years but less than 9 years | 14 weeks |
| At least 9 years but less than 10 years | 16 weeks |
| At least 10 years | 12 weeks |
Why does redundancy pay fall from 16 to 12 weeks?
The 10-year reduction is deliberate. Fair Work guidance notes that redundancy pay drops after 10 years because long service leave is usually payable around the same time. It is therefore important not to continue using the 16-week figure once the employee reaches 10 years of continuous service.
What weekly pay should you enter?
Enter the employee’s base weekly pay for ordinary hours. Redundancy pay under the NES is not normally calculated using the employee’s total weekly earnings.
Fair Work states that the base-pay calculation excludes items such as incentive payments, bonuses, loadings, monetary allowances, overtime, penalty rates and other separately identifiable amounts.
Don’t enter the entire final-pay amount. Notice, unused annual leave, eligible long service leave and other termination entitlements are separate from the NES redundancy amount calculated on this page.
If you want a broader final-pay estimate, use the Australia Termination Pay Calculator .
Small-business redundancy rules
A small-business employer generally has fewer than 15 employees. Most small businesses do not have to pay redundancy pay under the NES, which is why selecting the small-business option in the calculator produces a $0 indicative NES result.
However, that is not the end of the test. An award or enterprise agreement may contain an industry-specific redundancy scheme, and Fair Work also identifies special situations involving businesses that became small through downsizing.
Who is counted when deciding whether there are 15 employees?
Fair Work’s counting rules can include permanent employees, employees being made redundant, regular and systematic casuals, and employees of associated entities. That means the number of people physically working at one location is not always the correct headcount.
Small business does not always mean zero redundancy. If the employer is covered by an award, enterprise agreement or industry-specific redundancy scheme, check those rules before relying on the calculator’s small-business result.
Who may qualify for NES redundancy pay?
Redundancy pay is not simply triggered whenever employment ends. In broad terms, the NES entitlement may apply where the employer ends employment because the employee’s job is no longer required to be performed by anyone, or because of the employer’s insolvency or bankruptcy.
An employee will generally also need at least one year of relevant continuous service for an NES redundancy payment.
People who may not receive NES redundancy pay
- Employees with less than 12 months of continuous service.
- Most employees of small-business employers.
- Casual employees.
- Certain trainees and apprentices.
- Employees whose employment ends in circumstances excluded by the Fair Work Act.
Awards and enterprise agreements can contain additional or different redundancy provisions, so eligibility should always be checked against the instrument covering the employee.
How continuous service affects the result
The calculator asks for completed years and additional completed months because the NES bands change at each service anniversary. A person with 4 years and 11 months of continuous service is still in the 4-to-less-than-5-year band. They do not move into the 5-year band until they complete 5 years.
Fair Work also notes that some absences affect how continuous service is counted. For example, unpaid leave generally does not count towards the length of service even though it may not break continuity.
Periods of casual employment also require particular care. Section 119 of the Fair Work Act provides that periods of employment as a casual employee are not included in continuous service for the NES redundancy calculation.
Australia redundancy pay examples
8 years and 6 months
An eligible employee has 8 years and 6 months of continuous service and base weekly pay of $1,000. The 8-to-less-than-9 year band gives 14 weeks.
14 × $1,000 = $14,00010 months of service
An employee has only 10 months of continuous service. They have not reached the one-year NES redundancy threshold, although notice and other final-pay entitlements may still apply.
NES redundancy pay = $010 years and 3 months
An eligible employee has 10 years and 3 months of service with base weekly pay of $1,300. The 10-year step-down means the applicable period is 12 weeks, not 16.
12 × $1,300 = $15,600When redundancy pay can be reduced
Section 120 of the Fair Work Act allows an employer to apply to the Fair Work Commission for an NES redundancy amount to be reduced where the employer obtains other acceptable employment for the employee or cannot pay the full amount.
The Commission can determine an appropriate reduced amount, including potentially reducing the payment to zero. This is not an automatic adjustment and the calculator does not attempt to predict what the Commission would decide.
- another job offered to the employee;
- the employer’s claimed inability to pay;
- a transfer of business;
- a relocation dispute; or
- individual award or agreement provisions.
What this redundancy calculator does not include
Redundancy pay can be only one component of an employee’s final payment. This tool deliberately keeps the calculation focused on the NES redundancy amount.
- Notice of termination or payment in lieu of notice.
- Unused annual leave.
- Annual leave loading where applicable.
- Long service leave.
- Outstanding wages.
- Bonuses or commissions.
- Superannuation consequences.
- Employment termination payment tax calculations.
- Enhanced redundancy packages offered by an employer.
Use the Termination Pay Calculator when you need a broader estimate of amounts that may be payable when employment ends.
Common redundancy pay calculation mistakes
The multiplication is straightforward. The bigger risk is using the wrong service period, pay figure or eligibility assumption.
- ✕ Rounding service up. Four years and eleven months is still in the four-to-less-than-five-year band.
- ✕ Using gross weekly earnings instead of base pay. Bonuses, overtime, penalty rates and several other separately identifiable amounts are not part of the NES base-rate calculation.
- ✕ Ignoring the 10-year step-down. The NES payment is 16 weeks for at least 9 but less than 10 years, then 12 weeks once 10 years is reached.
- ✕ Assuming every employer under 15 employees pays zero. Most are exempt under the NES, but awards, agreements and other exceptions still need to be checked.
- ✕ Adding notice and unused leave into the redundancy figure. Those are separate final-pay components.
Redundancy pay calculator FAQs
How much redundancy pay do I get after 5 years in Australia?
Under the NES table, an eligible employee with at least 5 years but less than 6 years of continuous service receives 10 weeks of redundancy pay at their base rate for ordinary hours.
How much redundancy pay do I get after 10 years?
An eligible employee with at least 10 years of continuous service receives 12 weeks of NES redundancy pay. This is lower than the 16 weeks payable in the 9-to-less-than-10-year band.
Why does redundancy pay decrease after 10 years?
Fair Work explains that the entitlement drops after 10 years because long service leave is usually paid out around the same time.
Do employees with less than one year get redundancy pay?
Usually not under the NES redundancy table. Employees with less than 12 months of continuous service may still have other entitlements, including notice and payment of outstanding amounts.
Do small businesses have to pay redundancy?
Most employers with fewer than 15 employees do not have to pay redundancy under the NES. However, industry-specific award or agreement rules and other exceptions can apply, so the applicable employment instrument should also be checked.
Does overtime count when calculating redundancy pay?
The NES payment uses the employee’s base rate for ordinary hours. Fair Work says this calculation excludes overtime, penalty rates, bonuses, loadings, monetary allowances and other separately identifiable amounts.
Is redundancy pay separate from notice pay?
Yes. Redundancy pay and notice of termination are separate entitlements. An employee may also need to be paid unused annual leave, long service leave where applicable and other outstanding final-pay amounts.
Can an employer pay more than the NES redundancy amount?
Yes. The NES establishes minimum entitlements. An award, enterprise agreement, employment contract, employer policy or negotiated redundancy package can provide a higher benefit.
Is Australian redundancy pay tax free?
Genuine redundancy payments can receive concessional tax treatment up to applicable ATO limits, but tax treatment depends on the payment and the employee’s circumstances. This calculator estimates the employment entitlement only and does not calculate tax.
Official sources and methodology
This calculator is built around the National Employment Standards redundancy scale rather than a proprietary estimate. The underlying rule and eligibility notes were checked against current Australian Government sources.
Primary sources
Rule review: September 2026. Informational calculator only; not legal, tax, employment or payroll advice.