Free Australian redundancy pay calculator based on the National Employment Standards (NES) in section 119 of the Fair Work Act 2009. Enter your completed years of continuous service and your ordinary weekly base pay to instantly see the number of redundancy weeks owed and the total gross entitlement before tax. The NES scale runs from nil under 1 year up to 16 weeks at 9–10 years, stepping down to 12 weeks at 10 years or more. Includes the small business employer exemption (fewer than 15 employees, generally not required to pay) and notes that awards, enterprise agreements and contracts may provide more.
Completed years with this employer. Partial years are rounded down to the completed year for the NES scale.
Your normal weekly pay for ordinary hours — exclude overtime, penalties, allowances and bonuses.
Weeks owed
0 weeks
Redundancy Pay
$0.00
Gross, before tax
Weekly base pay
$0.00
The NES redundancy scale and the small business exemption are set by the Fair Work Act 2009 and can change. Awards, enterprise agreements and contracts may provide more. This is an estimate of the gross entitlement before tax — confirm your position with the Fair Work Ombudsman.
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When a job is made genuinely redundant, the National Employment Standards (NES) set a minimum amount of redundancy pay an employer must give. The amount is a number of weeks of your ordinary base pay, scaled to how long you have worked there continuously. Your award, enterprise agreement or employment contract may provide more — but never less — than the NES minimum.
| Period of continuous service | Redundancy pay |
|---|---|
| Less than 1 year | Nil |
| 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 or more | 12 weeks |
The step down to 12 weeks at 10+ years is intentional in the legislation, reflecting the historical link between long service and long service leave.
Redundancy pay = NES weeks (from the scale above) × ordinary weekly base pay. Base pay is your normal rate for your ordinary hours; it excludes overtime, penalty rates, allowances, bonuses, commissions and incentive payments.
Sara has worked full-time for 5 years and 4 months and earns $1,200 a week (base). She has completed 5 years of service, so the scale gives 10 weeks. Her redundancy pay is 10 × $1,200 = $12,000 (gross, before tax).
A small business employer — generally one with fewer than 15 employees at the time of the redundancies — is usually not required to pay NES redundancy pay. Headcount is a simple count of employees (including those being made redundant and, in some cases, associated entities). An award, registered agreement or contract can still require redundancy pay, so always check the instrument that covers the role.
Part of a genuine redundancy payment is tax-free up to a capped limit (a base amount plus an amount per completed year of service) that the ATO sets each financial year; amounts above the cap are taxed as an employment termination payment. This calculator shows the gross entitlement only.
Under the National Employment Standards (NES), redundancy pay is based on your years of continuous service: less than 1 year = nil, 1–2 years = 4 weeks, 2–3 = 6, 3–4 = 7, 4–5 = 8, 5–6 = 10, 6–7 = 11, 7–8 = 13, 8–9 = 14, 9–10 = 16, and 10 years or more = 12 weeks. The number of weeks is multiplied by your ordinary weekly base pay (excluding overtime, bonuses and allowances). For example, 5 years of service at $1,200 a week is 10 weeks = $12,000.
It is not a mistake — the NES scale in section 119 of the Fair Work Act 2009 deliberately steps down to 12 weeks at 10 or more years, from 16 weeks at 9–10 years. This is because long-serving employees were historically entitled to long service leave, so the redundancy scale was capped. Your award, enterprise agreement or contract may provide a more generous amount that overrides this.
Generally no. Under the NES, a 'small business employer' — one with fewer than 15 employees at the time of the dismissals (counted as a simple headcount including the employees being made redundant and certain associated entities) — is not required to pay NES redundancy pay. There are exceptions: a registered agreement, award or contract can still require it, so check the relevant instrument.
Redundancy pay is calculated on your ordinary weekly base rate of pay for your ordinary hours of work. It excludes overtime, penalty rates, allowances, commissions, bonuses, and incentive-based payments. If your hours vary, the Fair Work Ombudsman can help you work out an appropriate base figure.
A genuine redundancy payment is partly tax-free up to a capped limit set each financial year (a base amount plus an amount for each completed year of service), with any excess taxed as an employment termination payment (ETP). This calculator shows the gross NES entitlement before tax. Confirm the tax-free cap for the current year with the ATO.
Yes. NES redundancy pay generally does not apply to employees with less than 12 months' continuous service, most casuals, employees on fixed-term or task-based contracts that have simply ended, apprentices in some cases, and where a small business employer exception applies. The Fair Work Commission can also reduce the amount if the employer finds you other acceptable employment or cannot pay.
Sources & methodology
This calculator applies the National Employment Standards (NES) redundancy pay scale in section 119 of the Fair Work Act 2009: it reads the number of weeks owed from your completed years of continuous service, then multiplies by your ordinary weekly base pay. Small business employers (fewer than 15 employees) are generally exempt under the NES, so the tool returns nil in that case. Figures are computed in your browser — nothing you enter is stored or sent to a server.
Authoritative sources
Reviewed by Bishal Shrestha — Founder of OneBookPlus, 10+ years building tools with Australian tax-agent and BAS-agent practices. Last reviewed and updated: June 2026.
Disclaimer: This tool provides estimates only and is not professional advice. For decisions that affect your tax, finances, or compliance position, consult a registered professional.
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