Redundancy Pay Calculator
This is an Australian redundancy pay calculator using the National Employment Standards (NES) scale in s 119 of the Fair Work Act 2009 (Cth). Enter the employee’s years of continuous service and weekly pay and it returns the statutory minimum redundancy entitlement. Modern awards or contracts may provide more — this is the statutory floor.
What this calculator does
The NES in the Fair Work Act 2009 (Cth) sets out a stepped redundancy pay scale from 4 to 16 weeks of pay based on years of continuous service. This calculator applies that scale, flags the small business employer exemption, and reminds you that some awards and enterprise agreements provide enhanced redundancy benefits above the NES floor.
Legal basis
Redundancy pay is part of the National Employment Standards in the Fair Work Act 2009 (Cth), s 119. The small business employer exemption sits in s 121. Genuine redundancy tax treatment is governed by s 83-175 of the Income Tax Assessment Act 1997 (Cth).
How the calculation works
Apply the s 119 scale: <1 yr — nil; 1–<2 yrs — 4 wks; 2–<3 — 6 wks; 3–<4 — 7 wks; 4–<5 — 8 wks; 5–<6 — 10 wks; 6–<7 — 11 wks; 7–<8 — 13 wks; 8–<9 — 14 wks; 9–<10 — 16 wks; 10+ — 12 wks. Multiply by ordinary weekly pay. If the employer is a small business (<15), s 121 generally removes the entitlement unless an award or agreement says otherwise.
Interactive calculator coming soon
For an employee with 5 years of continuous service at an ordinary weekly pay of $1,800, the NES redundancy entitlement is 10 weeks × $1,800 = $18,000 (gross).
In the meantime, use the worked example above to validate your figures and confirm the final amount with the relevant revenue office or authority before relying on it in a matter.
Start free trialWhat you fill in
- Years of continuous service (number): Must be a positive number (decimals allowed)
- Ordinary weekly pay (AUD) (currency): Must be a positive number
- Employer size (select): Required
- Enhanced redundancy under award/EBA? (select): Required
- Genuine redundancy? (select): Required
Limitations
- Does not apply enhanced redundancy scales in modern awards or enterprise agreements
- Does not calculate the tax-free component under the genuine redundancy rules in s 83-175 ITAA 1997
- Does not address casual employees (who generally do not receive redundancy pay under the NES)
- Does not model acceptance-of-suitable-alternative-employment offsets under s 120 of the Act
- Does not calculate notice pay under s 117 — that is separate to redundancy pay
What to do next
If the role is being made redundant, check whether the relevant modern award or enterprise agreement provides enhanced redundancy. If it is a genuine redundancy, the tax-free cap in s 83-175 ITAA 1997 applies. For disputes or borderline cases, speak with an employment lawyer. Quillio drafts redundancy consultation letters and termination summaries in minutes — see /practice-areas/employment-lawyers.
Calculator FAQs
Is the NES scale the only entitlement?
No — the NES is a statutory floor. Modern awards, enterprise agreements, and contracts commonly provide enhanced redundancy (e.g. 3 weeks per year of service). Always check the applicable industrial instrument.
Does the small business exemption apply?
Under s 121, a small business employer (fewer than 15 employees at the time of termination) is generally not required to pay NES redundancy. However, an applicable modern award or enterprise agreement may still require a payment.
What is a genuine redundancy for tax purposes?
A genuine redundancy under s 83-175 ITAA 1997 requires that the position is no longer required due to operational reasons and the payment is not in lieu of ordinary termination. The tax-free cap is indexed annually.
Do casual employees get redundancy pay?
Casual employees generally do not receive redundancy pay under the NES. Regular and systematic casuals may have other entitlements depending on the award.
What about notice of termination?
Notice pay under s 117 is separate from redundancy pay. An employee is generally entitled to both — notice based on length of service, plus redundancy pay per s 119.
Does the 10+ years band really drop to 12 weeks?
Yes — the NES scale peaks at 16 weeks for 9–<10 years, then drops to 12 weeks for 10+ years. This is the statutory anomaly in s 119, preserved from long service leave interactions at the time of drafting.
Is this legal advice?
No. This is a statutory-scale calculator. Borderline or disputed redundancy situations need advice from an employment lawyer.
Get help with the matter
For employment lawyers and HR counsel, Quillio drafts the consultation letters, selection criteria memos, and termination summaries that sit around a redundancy. See /practice-areas/employment-lawyers.
This calculator applies the NES statutory minimum only. Awards, enterprise agreements, and contracts may require more. Borderline or disputed matters should be referred to an employment lawyer.
Quillio handles the next steps.
The calculator gives you the number. Quillio handles the rest of the matter — drafting, review, research, and correspondence. The free trial requires no sales call.
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