Redundancy Calculator
Calculate your redundancy pay entitlements in Australia including severance pay, unused leave, notice period, and understand the tax treatment of your payout.
Calculate Your Redundancy Entitlements
Employment Details
Leave Balances
Total Payout
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Gross amount before tax
Tax-Free Component
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Genuine redundancy tax-free portion
Payout Breakdown
Entitlements Breakdown
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Tax Treatment
NES Redundancy Scale
Under the National Employment Standards, minimum redundancy pay is based on years of continuous service:
| Years of Service | Redundancy Pay |
|---|
Understanding Redundancy in Australia
Redundancy occurs when an employer no longer requires a job to be performed by anyone. The National Employment Standards (NES) set minimum entitlements for redundancy pay.
What is a Genuine Redundancy?
For a redundancy to be genuine, the employer must:
- No longer require the job to be performed by anyone
- Have complied with consultation requirements in any applicable award or agreement
- Have met their obligation to consider redeployment options
Who is Eligible for Redundancy Pay?
Under the NES, employees are entitled to redundancy pay if:
- They have at least 12 months of continuous service
- Their employer has 15 or more employees
- They are covered by the national workplace relations system
Notice Period Requirements
| Period of Continuous Service | Minimum Notice Period | Over 45 Years Old* |
|---|---|---|
| Not more than 1 year | 1 week | 1 week |
| More than 1 year but not more than 3 years | 2 weeks | 3 weeks |
| More than 3 years but not more than 5 years | 3 weeks | 4 weeks |
| More than 5 years | 4 weeks | 5 weeks |
*Employees over 45 years of age with at least 2 years of continuous service receive an additional week of notice.
Tax-Free Redundancy Limits 2024-25
For genuine redundancies, part of the payment is tax-free. The tax-free limit depends on your years of service:
Tax-Free Amount = $12,524 + ($6,260 × complete years of service)
Example: For 5 complete years of service, the tax-free amount would be $12,524 + (5 × $6,260) = $43,824
Important Notes
- • Awards & agreements: Your award or enterprise agreement may provide for more generous redundancy pay
- • Small business: Employers with fewer than 15 employees are not required to pay redundancy under NES
- • Casuals: Casual employees are generally not entitled to redundancy pay
- • Transfer of business: If you're offered comparable employment, redundancy pay may not apply
- • Super: Genuine redundancy payments are not subject to super guarantee
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