Redundancy Pay Calculator 2026–27
Estimate your redundancy payout, how much is tax-free, and what you'll receive after tax.
| Part of the payment | Amount | Tax |
|---|
Printed from ClearCalc (clearcalc.com.au/redundancy-calculator/). Estimates only, not financial advice.
Redundancy pay under the National Employment Standards
If your job is made redundant by an employer with 15 or more employees, you're entitled to a minimum redundancy payment based on your continuous service:
| Years of service | Weeks of pay |
|---|---|
| At least 1 but less than 2 | 4 |
| 2 to less than 3 | 6 |
| 3 to less than 4 | 7 |
| 4 to less than 5 | 8 |
| 5 to less than 6 | 10 |
| 6 to less than 7 | 11 |
| 7 to less than 8 | 13 |
| 8 to less than 9 | 14 |
| 9 to less than 10 | 16 |
| 10 years or more | 12 |
It's paid at your base rate, without overtime, penalties or allowances. The amount drops at 10 years because long service leave is expected to start then. Many enterprise agreements pay more.
How a redundancy payout is taxed in 2026–27
- Tax-free amount: a genuine redundancy payment is tax-free up to $13,598 plus $6,801 for each completed year of service. Payment in lieu of notice counts towards this.
- Above the limit: the excess is an employment termination payment, taxed at 32% if you're under 60 or 17% if you're 60 or over, up to the $270,000 ETP cap.
- Unused annual leave and long service leave are paid in full but taxed at no more than 32% on a genuine redundancy.
The calculator uses the maximum withholding rates, including Medicare. Your actual tax is worked out in your tax return, and may be lower if your total income for the year is low. The whole-of-income cap can increase the tax on large payments for high earners.
Frequently asked questions
How much redundancy will I get after 5 years?
At least 10 weeks of base pay if your employer has 15 or more employees. On $1,800 a week, that's $18,000, plus notice and unused leave.
Is redundancy pay tax-free?
Up to a limit. In 2026–27 the first $13,598 plus $6,801 for each completed year of service is tax-free, if it's a genuine redundancy and you're under the Age Pension age.
What if I'm offered voluntary redundancy?
A voluntary redundancy can still be a genuine redundancy for tax purposes, as long as the job itself is being abolished and the payment is more than you'd get if you simply resigned.
Last reviewed October 2026. This calculator gives an estimate for general information only. Check important figures with the relevant government agency or a licensed professional.