Redundancy Pay Calculator
Estimate your redundancy pay under the National Employment Standards, how much of it is tax-free, the tax on the rest and on your unused leave, and what you’ll receive for 2026–27.
Your redundancy payout
Your payout after tax
$27,835.20
$29,640.00 before tax · $1,804.80 tax · $24,000.00 tax-free
- Redundancy pay (11 weeks)
- $17,600.00
- Pay in lieu of notice (4 weeks)
- $6,400.00
- Unused leave (annual leave, loading, long service leave)
- $5,640.00
- Total before tax
- $29,640.00
- Tax-free limit (6 complete years)
- $54,404.00
- Tax-free part
- $24,000.00
- Taxable termination payment (ETP)
- $0.00
- Tax on ETP (32%)
- −$0.00
- Tax on unused leave (32%)
- −$1,804.80
- Payout after tax
- $27,835.20
An estimate of the final tax, not of the amount your employer withholds. General information, not tax advice.
Rates checked 12 October 2026 against the ATO · How we calculate · Calculated in your browser; nothing you enter is sent anywhere.
NES redundancy weeks by service
If you have at least a year of continuous service and your employer has 15 or more employees, the National Employment Standards set a minimum number of weeks of redundancy pay at your base rate for your ordinary hours, without loadings, allowances, overtime or penalty rates. Your award or agreement may give more.
| Continuous service | Redundancy pay |
|---|---|
| At least 1 but less than 2 years | 4 weeks |
| At least 2 but less than 3 years | 6 weeks |
| At least 3 but less than 4 years | 7 weeks |
| At least 4 but less than 5 years | 8 weeks |
| At least 5 but less than 6 years | 10 weeks |
| At least 6 but less than 7 years | 11 weeks |
| At least 7 but less than 8 years | 13 weeks |
| At least 8 but less than 9 years | 14 weeks |
| At least 9 but less than 10 years | 16 weeks |
| At least 10 years | 12 weeks |
Source: Redundancy pay, Fair Work Ombudsman, checked 13 October 2026. You are also owed notice of termination, or pay instead of notice.
Tax-free limit and ETP tax
For a genuine redundancy, redundancy pay and pay in lieu of notice are tax-free up to $13,598 plus $6,801 for each complete year of service in 2026–27. The default example, 6 years at $1,600.00 a week, has a limit of $54,404.00, so its $24,000.00 of redundancy and notice pay is all tax-free.
Anything above the limit is an employment termination payment (ETP), taxed at 32% if you haven’t reached your preservation age or 17% if you have, up to the ETP cap of $270,000; above that it is taxed at 47%. For example, 2 years at $5,000.00 a week gives $27,200.00 tax-free and $22,800.00 taxed at 32%: $7,296.00.
If it isn’t a genuine redundancy, there is no tax-free part, and the concessional rate only applies up to the smaller of the ETP cap and the whole-of-income cap of $180,000 less your other taxable income for the year.
Sources: Employment termination payments (key rates and thresholds), ATO, last updated 17 April 2026; How ETP components are taxed, ATO, last updated 5 June 2026.
Unused leave payout
Your employer must also pay out unused annual leave, with leave loading if you would have received it, and any long service leave you are entitled to. These amounts are not part of the tax-free limit. On a genuine redundancy they are taxed at no more than 32%; otherwise, leave built up after 17 August 1993 is taxed at your marginal rates with your other income for the year.
Work out your balances with the annual leave calculator and the long service leave calculator.
Source: Schedule 7 – Tax table for unused leave payments on termination of employment, ATO, published 17 June 2026.
Frequently asked questions
Is redundancy pay tax-free?
Up to a limit, if it is a genuine redundancy. In 2026–27 the tax-free amount is $13,598 plus $6,801 for each complete year of service. Anything above that is taxed as an employment termination payment, at 32% (or 17% once you’ve reached your preservation age), up to the ETP cap. Unused leave is not part of the tax-free amount.
How many weeks of redundancy pay will I get?
Under the National Employment Standards, from 4 weeks after 1 year of service up to 16 weeks after 9 years, falling to 12 weeks after 10 years. Some awards and agreements give more. Most employers with fewer than 15 employees don’t have to pay NES redundancy pay.
What is a genuine redundancy for tax?
The ATO treats a redundancy as genuine when your job is abolished, your employment is terminated and you are under Age Pension age. It isn’t genuine if you leave voluntarily, reach normal retirement age, your contract ends, or you are dismissed for disciplinary or performance reasons (ATO).