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Updated 2025 Fair Work Regulations

Redundancy Pay Calculator 2025

Calculate your redundancy entitlements, unused leave payouts, tax implications, and Centrelink waiting period. Know exactly what you'll receive and when you can claim benefits.

Fair Work Act 2009
Includes Tax Calculations
Centrelink Waiting Period

Calculate Your Redundancy Entitlements

Enter your employment details to calculate redundancy pay, leave entitlements, and Centrelink waiting period

Include partial years (e.g., 5.5 for 5 years and 6 months)

$

Your base salary excluding superannuation

Total weeks of unused annual leave

Usually available after 7-10 years of service

Age affects tax treatment if over 60

When does your redundancy take effect? (Used to calculate Centrelink eligibility date)

Disclaimer: This calculator provides estimates based on Fair Work Act 2009 and ATO tax rates for 2024-25. Actual entitlements may vary based on your employment contract, award, enterprise agreement, and specific circumstances. Tax calculations are simplified and may not account for all factors. Always consult Fair Work Australia and a qualified tax professional for personalized advice.

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Quick Facts

Redundancy pay based on service years
Tax-free limit: $13,100 base + $6,552/year (2025-26)
Leave payouts taxed normally
Income maintenance period affects Centrelink

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How Redundancy Pay Works

1

Service Years

Redundancy pay = weeks of pay per year of service (1-10+ years scale)

2

Leave Payouts

Unused annual leave and long service leave paid at normal rate

3

Tax Treatment

$13,100 + $6,552/year tax-free, then special ETP rates apply

4

Centrelink Wait

Income maintenance period delays JobSeeker eligibility

Frequently Asked Questions

How is redundancy pay calculated in Australia?

Redundancy pay is calculated based on your years of continuous service: 1 year = 4 weeks' pay, 2 years = 6 weeks, 3 years = 7 weeks, up to a maximum of 16 weeks for 10+ years. This is based on your base weekly wage (before tax and superannuation).

What is the tax-free limit for redundancy pay?

For the 2025-26 financial year, the tax-free limit is $13,100 plus $6,552 for each complete year of service. Any amount above this is taxed at special Employment Termination Payment (ETP) rates, which are generally lower than your normal income tax rate.

When can I claim JobSeeker after redundancy?

You must wait through an 'income maintenance period' (IMP) before claiming JobSeeker. The IMP includes ALL termination payments: redundancy pay weeks + annual leave weeks + long service leave weeks. For example: 14 weeks redundancy + 4 weeks annual leave = 18 weeks total waiting period. Important: There is NO maximum cap - the IMP can be 30, 60, or even 100+ weeks depending on your payments.

Is unused annual leave included in redundancy pay?

Unused annual leave is paid separately from redundancy pay and is taxed as normal income at your marginal tax rate. It does NOT count towards the tax-free redundancy threshold. Long service leave is treated the same way.

Do I still get redundancy if I resign or am fired?

No. Redundancy pay only applies when your position is genuinely redundant (role no longer exists). If you resign, are fired for misconduct, or are on a casual/fixed-term contract, you are generally not entitled to redundancy pay.

Can my employer offer less than the Fair Work redundancy entitlement?

No, unless your workplace is covered by a registered agreement or award that specifies different redundancy entitlements. However, some awards and agreements provide MORE than the minimum Fair Work entitlements.

How does redundancy pay affect my superannuation?

Genuine redundancy payments are NOT subject to superannuation guarantee contributions. However, your employer may choose to make a superannuation payment as part of your redundancy package. This is usually concessionally taxed.

What if I get a new job during the income maintenance period?

If you find new employment during your income maintenance period, you still cannot claim JobSeeker until the period ends. However, your new income will be assessed normally for tax purposes and won't extend the waiting period.

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