Calculate your minimum redundancy entitlement under the Fair Work Act National Employment Standards
Under the National Employment Standards (NES) of the Fair Work Act 2009, employees are entitled to a minimum redundancy payment based on their years of continuous service. The amount is calculated as a number of weeks of ordinary pay. Note that small businesses (fewer than 15 employees) and casual employees are generally not covered by NES redundancy provisions.
Last updated: March 2026
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Under the Fair Work Act NES, redundancy pay ranges from 4 weeks (1 year of service) to a maximum of 16 weeks (9+ years). The payment is based on your ordinary time earnings — it does not include overtime, allowances, or penalty rates.
Redundancy pay = weeks entitlement x weekly ordinary time earnings. The number of weeks depends on completed years of continuous service: 1 year = 4 weeks, 2 years = 6 weeks, increasing to a maximum of 16 weeks for 9 or more years.
Part of a genuine redundancy payment is tax-free. For FY2025-26, the tax-free amount is $11,985 plus $5,994 for each completed year of service. Any amount above this threshold is taxed at a maximum rate of 32% (not your marginal rate).
Generally no — the NES sets minimum entitlements that cannot be contracted away. However, an employer may apply to the Fair Work Commission to reduce the redundancy amount in limited circumstances, such as if they find the employee alternative employment.