Australian Redundancy Pay Calculator
Find out how much redundancy pay you're entitled to under the Fair Work Act — and what you'll take home after tax.
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How redundancy pay works in Australia
Under the National Employment Standards (NES) in the Fair Work Act 2009, most employees are entitled to redundancy pay when their position is made redundant. The amount is based on your continuous service with the employer, scaled as follows:
| Years of service | Weeks of pay |
|---|---|
| 1–2 years | 4 weeks |
| 2–3 years | 6 weeks |
| 3–4 years | 7 weeks |
| 4–5 years | 8 weeks |
| 5–6 years | 10 weeks |
| 6–7 years | 11 weeks |
| 7–8 years | 13 weeks |
| 8–9 years | 14 weeks |
| 9–10 years | 16 weeks |
| 10+ years | 12 weeks |
Source: Fair Work Act 2009, s.119.
Frequently asked questions
Is redundancy pay taxed in Australia?▾
Yes, but part of your redundancy payment may be tax-free. Under the ATO's 2024–25 rates, the tax-free limit is $12,524 plus $6,264 for each completed year of service. The amount above this limit is taxed at the concessional ETP rate of 17% (plus the 2% Medicare levy), provided your total income is below the $180,000 ETP cap.
Am I entitled to redundancy pay if my employer is a small business?▾
Generally, no. Small business employers — those with fewer than 15 employees — are exempt from the National Employment Standards (NES) redundancy pay provisions under the Fair Work Act. However, your award or enterprise agreement may still provide redundancy entitlements, so it's worth checking.
Does redundancy pay include superannuation?▾
Redundancy pay itself is not subject to superannuation guarantee contributions, as it is not classified as ordinary time earnings. However, notice pay (whether worked or paid in lieu) does attract super. Check your contract, as some employers make discretionary super contributions on redundancy payments.
What is the difference between redundancy pay and notice pay?▾
Redundancy pay is a lump-sum entitlement under the Fair Work Act based on your years of service, paid because your job no longer exists. Notice pay is the payment you receive for your notice period — either by continuing to work through the period or receiving payment in lieu. You are generally entitled to both when made redundant.
This calculator provides an estimate only and does not constitute legal or financial advice. Entitlements may vary depending on your award, enterprise agreement, or employment contract. Consult an employment lawyer for advice specific to your situation.