Topic Hub · Redundancy pay

Redundancy Calculator Australia.

Calculate redundancy pay under section 119 of the Fair Work Act 2009. NES sliding scale from 4 weeks at 1 year to 16 weeks at 9-10 years. Covers small business exemption and eligibility.

Free, no sign-up|Live|Fair Work Act 2009 (Cth) s.119

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Standard FT week is 38 hours.
$
For loading & payout values.
45+ with 2+ years service gets +1 week notice (s.117(3)(b)).
Some states pay LSL pro-rata only for non-voluntary termination.

Here's your entitlement

AU$0.00
Not entitled to NES redundancy pay.
0 wks
Redundancy weeks
1.0 yrs
Service
$1330
Weekly base pay
See full calculationFair Work Act 2009 (Cth) s.119
ComponentFormulaValue
Years of continuous service2025-05-10 to 2026-05-101.00 yrs
Weekly base pay38h × $35.00$1330.00
NES schedule (s.119)Bracket: < 1 year (no entitlement)0 wks
Eligibility adjustmentLess than 1 year of continuous service. Redundancy pay only applies after 12 months under the NES.−0 wks
Redundancy pay0 wks × $1330.00$0.00

NES redundancy schedule

1-2 yrs
4 wks
2-3 yrs
6 wks
3-4 yrs
7 wks
4-5 yrs
8 wks
5-6 yrs
10 wks
6-7 yrs
11 wks
7-8 yrs
13 wks
8-9 yrs
14 wks
9-10 yrs
16 wks
10+ yrs
12 wks
Sarah Reid, CAHRI
Reviewed bySarah Reid, CAHRICert IV Payroll · Sydney based
Verified expert

Disclaimer: This tool does not constitute legal or financial advice. Results may be inaccurate due to changes in legislation or your circumstances. This tool does not constitute legal or financial advice. We do not recommend taking actions based solely on these results. The calculator makes assumptions and results may be inaccurate due to changes in legislation, modern awards, or your personal circumstances. You use this information at your own risk. We can't guarantee to be perfect, so do note you use the information at your own risk and we can't accept liability if things go wrong. For official guidance, visit Fair Work Ombudsman (fairwork.gov.au). Fair Work Ombudsman.

Redundancy pay Snapshot

Three numbers that define this entitlement.

Every figure derived from current legislation.

NES Entitlement
4wks/yr
For FT & PT
Set by the relevant statute.
Accrual rate
2.923hrs/wk
For 38-hr FT week
152 hrs over 52 weeks.
Loading
17.5%
On top of base pay
Award-dependent.
Worked Examples

Three real scenarios.

The math gets tangled when employment type, hours and timing combine.

P
Priya
FT · Sydney · 5 yrs · $1,500/wk base

My role is being made redundant after 5 years. What am I owed?

NES schedule at 5 years: 10 weeks of redundancy pay. 10 × $1,500 = $15,000 redundancy. Plus 3 weeks notice (s.117) and any unused annual + LSL paid out separately. Genuine redundancy attracts a tax-free cap of $45,860 for 5 yrs ($13,100 + $6,552 × 5, FY2025-26 ATO figures; rises to $47,603 from 1 July 2026).

T
Tom
FT · 8 yrs · 12-person business

My employer has 12 staff. Do I get redundancy pay?

No NES redundancy. Small business employers (<15 employees) are exempt under s.121 Fair Work Act. Tom is still owed notice (4 weeks at 8 yrs) and unused leave payouts. Always check the modern award too: some include redundancy regardless of employer size.

L
Lena
FT · 11 yrs · large employer

Why does my redundancy go DOWN at 11 years compared to 9 years?

Quirk of the schedule. The NES caps at 16 weeks at 9-10 years, then drops to 12 weeks at 10+. Originally designed to coordinate with long service leave kicking in at 10 years. Many awards top this back up - check yours.

Q & A

Redundancy pay questions.

The most-asked questions about this entitlement.

How is redundancy pay calculated in Australia?
Under the NES (Fair Work Act s.119), redundancy pay scales by years of continuous service: 4 weeks at 1 year, 6 at 2 years, 7 at 3, 8 at 4, 10 at 5, 11 at 6, 13 at 7, 14 at 8, 16 at 9, then drops back to 12 weeks at 10+ years. Paid at base rate, not gross. Run your figures in the redundancy calculator
Why does redundancy pay drop after 10 years?
It's a historical quirk: the NES schedule was designed when long service leave kicked in at 10 years, so the redundancy bracket steps down to avoid double-counting. Your award or enterprise agreement may pay more.
Do small businesses have to pay redundancy?
No. Employers with fewer than 15 employees are exempt from NES redundancy under section 121 of the Fair Work Act. They still owe notice and unused leave payouts.
Do casuals get redundancy pay?
Generally no. Casuals are excluded from NES redundancy because their 25% loading is paid in lieu of leave and notice entitlements. A regular casual employed for 12+ months may have other rights though.
Is redundancy pay taxed?
Genuine redundancy gets a tax-free cap: $13,100 + $6,552 per completed year of service for FY2025-26 (rises to $13,598 + $6,801 from 1 July 2026, ATO indexed annually). Anything above that is taxed at the employment termination payment (ETP) rate, which is concessional below the ETP cap ($260,000 for FY2025-26).
What counts as continuous service for redundancy?
Unbroken employment with the same employer. Paid leave (annual, personal, public holidays) counts. Unpaid leave doesn't add to service but doesn't break it. Casual to permanent conversions usually count from the conversion date.
Redundancy pay Methodology

Built on Fair Work Act 2009 (Cth) s.119.

Every redundancy pay calculation on this page is built directly from Fair Work Act 2009 (Cth) s.119 and the relevant modern award where applicable.

Reviewed by a registered HR practitioner.

Last reviewed25 Apr 2026
ReviewerSarah Reid, CAHRI
Primary sourceFair Work Act 2009 (Cth) s.119
RefreshQuarterly