Redundancy Pay Calculator Explained for Australians
Estimates minimum redundancy pay under the National Employment Standards. This guide walks through what each input means, the formula behind the answer and a worked example using typical Australian figures. You can follow along in the free Redundancy Pay Calculator.
Why it matters
Australia taxes individuals on a progressive scale, so each extra dollar can be taxed at a different rate from the last. On top of income tax, most residents pay the 2% Medicare levy, and many carry HELP debts that are repaid through the tax system. Employers withhold tax from each pay under PAYG, and the annual tax return squares up the difference.
What you need to enter
The calculator asks for 2 inputs. The table shows each one with the example value used later in this guide.
| Input | Example value |
|---|---|
| Base weekly pay ($) | 1800 |
| Years of continuous service | 6 |
The formula
Redundancy pay = base weekly pay × weeks from the NES scale (4 weeks after 1 year, rising to 16 weeks at 9 years, then 12 weeks from 10 years).
Worked example
Entering the example values above gives these results:
| Result | Value |
|---|---|
| Redundancy pay (gross) | $19,800.00 |
| NES redundancy entitlement | 11 weeks |
The headline figure is $19,800.00 (redundancy pay (gross)). Change any input in the calculator and every result updates instantly, so you can test different scenarios side by side.
How the redundancy pay (gross) changes with base weekly pay
The table below keeps every other input at the example value and moves only “Base weekly pay ($)” up and down by 10% and 20%. It shows how sensitive the redundancy pay (gross) is to that one figure.
| Base weekly pay ($) | Redundancy pay (gross) |
|---|---|
| 1,400 | $15,400.00 |
| 1,600 | $17,600.00 |
| 1,800 | $19,800.00 |
| 2,000 | $22,000.00 |
| 2,200 | $24,200.00 |
At 1,400 the result is $15,400.00; at 2,200 it is $24,200.00. If a small change in this input moves the answer a lot, it is worth double-checking that figure before you rely on the result.
A practical tip
Small businesses with fewer than 15 employees are generally exempt from NES redundancy pay, but your contract or award may give more.
Keep going
Before relying on the number, read Redundancy Pay Mistakes Australians Make and How to Avoid Them. You might also find these guides useful:
- How the Long Service Leave Calculator Works (With a Worked Example)
- Annual Leave Calculator: Formula, Example and What the Result Means
- How the Income Tax Calculator Works (With a Worked Example)
Frequently asked questions
- Are these results exact?
- They are estimates based on standard resident rates. Your actual tax depends on your full circumstances, offsets and any private health insurance position. The ATO’s own tools or a registered tax agent give a definitive answer.
- Do the calculators work for non-residents?
- No. Non-residents have different rates, no tax-free threshold and no Medicare levy. These calculators assume you are an Australian resident for tax purposes.
- When do tax rates change?
- Rates usually change on 1 July, the start of the Australian financial year. Check the ATO website each July for the current figures.
Run your own numbers in the Redundancy Pay Calculator.
Open the calculatorGeneral information only. Rates and thresholds change, usually on 1 July. Confirm current figures with the ATO or the relevant authority, and get personal advice for decisions about your situation.