Finance & Money Calculators

Redundancy Pay Calculator

Estimate redundancy weeks and gross redundancy pay from age, completed years of service, and weekly pay under the tool's statutory bands.

Redundancy Pay Calculator — Online Calculator

Employment & Jurisdiction

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Key Redundancy Facts

  • Tax-Free Threshold: For genuine redundancy, $12,524 base + $6,264 per completed year of service is completely tax-free.
  • Small Business Exemption: Employers with under 15 staff are generally exempt from severance pay (notice is still required).
  • Long Service: Employees with 10+ years receive 12 weeks severance under standard NES.
Estimated Total Payout (Pre-Tax)
$19,000

Includes 14 total weeks entitlement + $1,500 leave payout

Severance Pay$12,500
Tax-Free Amount$17,500

Itemized Entitlement Breakdown

Redundancy Severance Pay$12,500
Notice Pay (4 weeks)$5,000
Unused Annual Leave$1,500
Genuine Redundancy Tax-Free Portion$17,500
Total Redundancy Payout$19,000

Fair Work NES Redundancy Scale

Service PeriodNES Severance Entitlement
1–2 years4 weeks pay
2–3 years6 weeks pay
3–4 years7 weeks pay
4–5 years8 weeks pay
5–6 years10 weeks pay
6–7 years11 weeks pay
7–8 years13 weeks pay
8–9 years14 weeks pay
9–10 years16 weeks pay
10+ years12 weeks pay
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Disclaimer: This tool provides informational results only and should not be used as professional advice.

The Redundancy Pay Calculator estimates statutory redundancy weeks and gross pay from age, completed years of continuous service, and weekly pay. The implementation uses age-based service bands and caps counted service at 20 years.

How the service bands are applied

The calculator works backwards through each completed year of service using the worker's age at the end of that service year:

  • Under age 22: 0.5 week's pay per counted year.
  • Age 22 through 40: 1 week's pay per counted year.
  • Age 41 or older: 1.5 weeks' pay per counted year.

Estimated redundancy pay=Total weighted weeks×Entered weekly pay\text{Estimated redundancy pay}=\text{Total weighted weeks}\times\text{Entered weekly pay}

At least two years of service are required by the calculator. Partial years are discarded, and no more than 20 completed years are counted.

Worked example

For a 45-year-old with 10 completed years of service and weekly pay of 700:

  1. The calculator assigns each historical service year to the relevant age band.
  2. It totals the half-week, one-week, and one-and-a-half-week service amounts.
  3. If the weighted total were 13 weeks, the gross estimate would be 13 x 700 = 9,100.

The displayed breakdown shows how many service years were allocated to each band so the estimate can be checked.

Questions

Are partial years of service included?

No. The implementation uses completed whole years and caps the calculation at 20 years.

Does the calculator apply a legal weekly-pay cap?

No. It multiplies the weighted weeks by the weekly pay you enter. If a statutory cap applies to your date or jurisdiction, enter the applicable capped amount or calculate it separately.

Does this include notice pay or unused leave?

No. It estimates redundancy pay only. Notice, holiday pay, contractual enhancements, tax treatment, and other termination amounts are outside this calculation.

Legal and date limitations

This is an informational estimate, not legal advice. Redundancy rights depend on jurisdiction, employment status, dates, contracts, awards, and current statutory limits. Verify the rules and capped weekly pay that apply to the termination date with the relevant government authority or an employment professional.

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