Redundancy Pay Calculator Australia (NES) 2026-27
Work out National Employment Standards redundancy pay from a start date, end date and weekly base pay. The same form also shows NES notice weeks, including the extra week where the employee is over 45 and has at least two years’ service, and the small business exemption for employers with fewer than 15 employees.
How NES redundancy pay is worked out
Continuous service is the time from the start date to the end date. Casual periods do not count toward this NES entitlement. Once service reaches one year, the Fair Work Act table sets a number of weeks. Those weeks are paid at the employee’s base rate for ordinary hours — not including loadings, overtime, allowances or bonuses.
A small business employer (fewer than 15 employees) is not required to pay NES redundancy pay. Employees with under 12 months’ service are also outside the scale. Fixed-term, seasonal, trainee, apprentice and many casual roles, and dismissals for serious misconduct, can sit outside the entitlement as well. This calculator only applies the service scale and the small-business checkbox.
NES redundancy pay scale
| Continuous service | Redundancy pay |
|---|---|
| Less than 1 year | Nil |
| At least 1 year but less than 2 years | 4 weeks |
| At least 2 years but less than 3 years | 6 weeks |
| At least 3 years but less than 4 years | 7 weeks |
| At least 4 years but less than 5 years | 8 weeks |
| At least 5 years but less than 6 years | 10 weeks |
| At least 6 years but less than 7 years | 11 weeks |
| At least 7 years but less than 8 years | 13 weeks |
| At least 8 years but less than 9 years | 14 weeks |
| At least 9 years but less than 10 years | 16 weeks |
| At least 10 years | 12 weeks |
The Fair Work Ombudsman publishes the same table. After 10 years the weeks fall from 16 to 12. That is not a calculator error.
Notice weeks sit beside redundancy pay
Making a job redundant does not remove the duty to give notice or pay in lieu. The NES notice table is 1, 2, 3 or 4 weeks, plus one extra week if the employee is over 45 and has completed at least two years’ service. Notice is measured on the day notice is given. The notice period calculator uses the same dates and pay and puts that table first.
ATO tax-free genuine redundancy limit
If the payment is a genuine redundancy, the ATO treats part of it as tax-free: a published base amount plus a published amount for each complete year of service. For 2026-27 that is $13,598 + ($6,801 × complete years). For 2025-26 the published pair is $13,100 + $6,552 per complete year. The calculator shows the limit that belongs to the income year of the end date.
The tax-free slice is not an employment termination payment. Any genuine redundancy amount above the limit is an ETP. Unused leave is reported separately. This page does not work out ETP withholding or whether Age Pension age or other ATO conditions are met.
Frequently Asked Questions
How many weeks of NES redundancy pay do I get?
The National Employment Standards set a scale based on continuous service on the day employment ends. After one year the scale starts at 4 weeks, then 6, 7, 8, 10, 11, 13, 14 and 16 weeks. At 10 years or more it drops to 12 weeks. That drop is written into the Fair Work Act and matches the 2004 Redundancy Case. There is no extra redundancy week for being over 45 — that extra week applies only to notice.
Does a small business have to pay NES redundancy pay?
Usually no. Fair Work Act s 121 excludes a small business employer, which is an employer with fewer than 15 employees. The count includes the employee whose job is ending, regular and systematic casuals, and employees of associated entities. Minimum NES notice still applies. Some awards have their own redundancy rules, so check the award as well as the NES.
Is NES redundancy pay the same as notice?
No. Notice (or payment in lieu) is a separate NES entitlement. You can receive both. Use the notice period calculator if you only want the notice table. Redundancy pay is at the base rate for ordinary hours. Payment in lieu of notice is at the full rate of pay.
What is the ATO tax-free genuine redundancy limit for 2026-27?
The ATO publishes a base amount plus an amount for each complete year of service. For 2026-27 that pair is $13,598 plus $6,801 per complete year. For 2025-26 it was $13,100 plus $6,552. Only a genuine redundancy — the job is abolished, and other ATO conditions including being under Age Pension age — uses this limit. Amounts above it are an employment termination payment. Unused annual leave and long service leave are not part of this limit.
Are unused annual leave and long service leave included?
They are paid out on termination when they are owing, but they are not NES redundancy pay and they are taxed under different ATO rules. Estimate unused annual leave on the annual leave calculator and long service on the long service leave calculator. Those amounts sit outside the genuine-redundancy tax-free limit.
Is this legal or tax advice?
No. This page is general information about published NES week scales and ATO tax-free amounts. It is not legal advice, tax advice or a Fair Work or ATO assessment. Awards, enterprise agreements and contracts can set a higher amount. Confirm your situation with the Fair Work Ombudsman, the ATO, or an adviser before you rely on a figure.
Disclaimer
This page is general information about published National Employment Standards week scales and ATO genuine-redundancy tax-free amounts. It is not legal advice, tax advice, or a decision of the Fair Work Ombudsman, the Fair Work Commission or the ATO. Awards, enterprise agreements and contracts can require more than the NES. Confirm your circumstances against official sources before you act.