How to use the Redundancy Pay Calculator
- 1 Enter your years of continuous service with the employer.
- 2 Enter your base weekly pay for ordinary hours.
- 3 Read the weeks of pay from the NES scale.
- 4 Read your minimum redundancy pay.
Worked example
Six years of continuous service on base pay of $1,800 a week. The NES scale gives 11 weeks of pay for 6 to 7 years of service, so the minimum redundancy pay is $19,800. Notice, unused annual leave and any long service leave would be paid in addition.
Features
NES scale
4 to 16 weeks of pay depending on service.
Base pay
Uses base pay for ordinary hours, excluding overtime and bonuses.
Instant answer
Shows the weeks and the dollar amount.
When to use it
Facing redundancy
Know the minimum you are owed.
Comparing packages
See whether an offer is above the legal minimum.
Employers
Work out redundancy pay correctly.
Financial planning
Plan your budget while finding a new job.
Frequently asked questions
How much redundancy pay do I get?
Under the NES: 4 weeks for 1 to 2 years of service, 6 weeks for 2 to 3, 7 weeks for 3 to 4, 8 weeks for 4 to 5, 10 weeks for 5 to 6, 11 weeks for 6 to 7, 13 weeks for 7 to 8, 14 weeks for 8 to 9, 16 weeks for 9 to 10 and 12 weeks for 10 years or more.
Why does it drop after 10 years?
The NES scale assumes long-serving employees have more long service leave, which is paid separately.
Who is not entitled?
Employees of small businesses with fewer than 15 employees, casuals, and those on fixed-term contracts or dismissed for serious misconduct.
What is base pay?
Pay for ordinary hours, not including incentive payments, bonuses, loadings, allowances or overtime.
Is redundancy pay taxed?
A genuine redundancy payment is tax-free up to a limit that depends on years of service and is indexed each year. Amounts above the limit are taxed as an employment termination payment.
Do I also get notice and leave?
Yes. Notice or pay in lieu of notice, unused annual leave and long service leave are paid as well.
What makes a redundancy genuine?
The employer no longer needs anyone to do your job, and it has followed any consultation requirements in your award or agreement. It is not genuine if you could reasonably be redeployed elsewhere in the business.
Can an award give more?
Yes. Some awards and enterprise agreements have higher redundancy scales. Your employer must pay the higher of the NES and your award or agreement.
Can my employer reduce redundancy pay?
An employer can apply to the Fair Work Commission to reduce it if they found you other acceptable work or cannot afford it, but they cannot simply pay less.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated