Free tool · rules checked 29 September 2026
Redundancy pay calculator, Australia 2026-27
Enter your salary, age and years of service. You get your redundancy pay, your notice, the tax-free part and the amount that reaches your account, using the Fair Work minimums and the ATO limits for 2026-27.
Without super, bonus or allowances. Redundancy pay uses the base rate.
Over 45 adds a week of notice. From 60 the tax rate on the taxed part falls.
Continuous service. Unpaid leave does not count toward it.
Enter your salary, age and years of service to see your figures.
Worked out in your browser. Nothing you type here is sent or stored.
How redundancy pay is worked out
The National Employment Standards set a minimum based on your continuous service with the employer. It is paid at your base rate for ordinary hours, so bonuses, loadings, allowances and overtime are left out.
| Continuous service, at least | Redundancy pay |
|---|---|
| 1 year | 4 weeks |
| 2 years | 6 weeks |
| 3 years | 7 weeks |
| 4 years | 8 weeks |
| 5 years | 10 weeks |
| 6 years | 11 weeks |
| 7 years | 13 weeks |
| 8 years | 14 weeks |
| 9 years | 16 weeks |
| 10 years or more | 12 weeks |
An award, enterprise agreement or employment contract can promise more. Where it does, the larger figure is yours. Open “Add your contract terms” in the calculator and enter the weeks your contract gives.
Notice comes on top
Your employer also owes you notice. You either work it, paid as normal salary, or receive payment in lieu at the full amount you would have earned.
| Continuous service | Minimum notice |
|---|---|
| 1 year or less | 1 week |
| More than 1 and up to 3 years | 2 weeks |
| More than 3 and up to 5 years | 3 weeks |
| More than 5 years | 4 weeks |
Employees over 45 with at least two years of service get one extra week. A contract can set a longer period, and the longer period applies.
How the payout is taxed in 2026-27
A genuine redundancy payment is tax-free up to a limit: A$13,598 plus A$6,801 for each complete year of service. Redundancy pay and payment in lieu of notice both count toward it. You need to be under age pension age.
The part above your limit is taxed at 32% if you are under 60 and 17% from 60, Medicare levy included, up to a cap of A$270,000. Anything above the cap is taxed at 47%.
Unused annual leave and long service leave are paid out separately, with tax withheld at 32%. Your employer reports each part on your income statement.
What the calculator assumes
A week of pay is your base salary divided by 52, and a day of leave is your base salary divided by 260. The tax figures are the amounts withheld from the payment. Your final tax for the year depends on your other income, and long service leave earned before 1978 is taxed differently. This page is general information, not tax or legal advice. For a decision about your own payout, speak to the Fair Work Ombudsman, a tax agent or a lawyer.
Common questions
How much redundancy pay do I get in Australia?
Under the National Employment Standards it runs from 4 weeks of base pay after one year of continuous service to 16 weeks at nine years, then 12 weeks from ten years. Your award, enterprise agreement or contract can set a higher figure, and the higher figure applies.
Why does redundancy pay drop to 12 weeks after ten years?
The scale was set on the basis that employees with ten years of service also receive long service leave, which is paid out when the job ends. The two together are worth more than the 16 weeks paid at nine years.
How much of a redundancy payment is tax-free in 2026-27?
For a genuine redundancy the tax-free limit is A$13,598 plus A$6,801 for each complete year of service. Twelve years gives A$95,210. It covers redundancy pay and payment in lieu of notice, and it applies only if you are under age pension age.
Is unused annual leave part of the tax-free amount?
No. Unused annual leave and long service leave are paid out separately and tax is withheld at 32% when the job ends through a genuine redundancy.
Do small businesses pay redundancy?
Most employers with fewer than 15 employees do not have to pay redundancy under the National Employment Standards. Notice still applies, and a contract or agreement can still promise redundancy pay.
After the payout: the search
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