How Much Redundancy Pay Do I Get?
If you've been made redundant in Australia, your entitlements depend on how long you've worked for your employer. The National Employment Standards (NES) set the minimum redundancy pay, though your enterprise agreement or contract may provide more.
The NES Redundancy Scale
Redundancy pay is calculated as a number of weeks of your base pay (not including overtime, penalties, or allowances) based on your years of continuous service:
1 year: 4 weeks · 2 years: 6 weeks · 3 years: 7 weeks · 4 years: 8 weeks · 5 years: 10 weeks · 6 years: 11 weeks · 7 years: 13 weeks · 8 years: 14 weeks · 9 years: 16 weeks · 10+ years: 12 weeks
Yes, 10+ years drops to 12 weeks — it's not a typo. The scale peaks at 9 years (16 weeks) then reduces. This is one of the most commonly misunderstood aspects of Australian redundancy law.
What Else You're Owed
On top of redundancy pay, you're entitled to a notice period (or payment in lieu): 1 week for under 1 year of service, 2 weeks for 1-3 years, 3 weeks for 3-5 years, and 4 weeks for 5+ years. Add an extra week if you're over 45 and have been employed for at least 2 years.
You also get paid out any unused annual leave and long service leave (if eligible — usually 7-10 years depending on state).
Real Example
Say you earn $85,000 and have worked at the company for 5 years with 15 days of unused annual leave.
Your weekly pay rate is $1,635. Redundancy pay: 10 weeks × $1,635 = $16,350. Notice period: 3 weeks × $1,635 = $4,905. Leave payout: 15 days × $327/day = $4,905. Total payout: approximately $26,160 before tax.
Calculate Your Redundancy Payout →Tax on Redundancy Pay
Genuine redundancy payments are tax-free up to a limit that depends on your years of service. For 2025-26, the base limit is $12,524 plus $6,264 for each completed year of service. Amounts above this are taxed at concessional rates. Your employer should withhold the correct amount, but it's worth checking with a tax professional if the numbers are significant.