🇦🇺 2026-27
WORKED EXAMPLE · 10 YEARS · AGE 50

Redundancy pay after 10 years

It surprises a lot of people: under the NES you get less redundancy pay at 10 years than at 9. Here’s why, and what the full payout looks like.

Your job

The 10-year drop

The NES scale peaks at 16 weeks for 9 to under 10 years, then falls to 12 weeks from 10 years. The reason: most employees become entitled to long service leave at around 10 years (7 years in some states), which is paid out on termination, so the NES amount was set lower to balance it.

9½ years10 years
NES redundancy pay$32,000$24,000
Notice (4 weeks + 1 for over 45)$10,000$10,000
Tax-free limit$74,807$81,608
Total after tax (incl. leave)$47,440$39,440

The full 10-year payout

12 weeks × $2,000 = $24,000 redundancy; 5 weeks’ notice (over 45) = $10,000; total genuine redundancy payment $34,000 — well within the tax-free limit of $13,598 + 10 × $6,801 = $81,608. Plus 152 hours of annual leave ($8,000, taxed at 32%). Take-home about $39,440, before long service leave.

Don’t forget long service leave

Unused long service leave is paid out on top and taxed under its own rules (amounts accrued after 17 August 1993 are taxed at up to 32% on genuine redundancy). Entitlements depend on your state law — for example, in NSW it is 8.67 weeks after 10 years. This calculator doesn’t include it.

Check your agreement

Many enterprise agreements don’t have the 10-year drop and pay, for example, 2 or 3 weeks per year of service with a cap. If your agreement is better, it applies.

If you are close to the pension age or super access

At 60 or over, the taxable part of a redundancy payout is taxed at 17% instead of 32%, and you may be able to access your super if you retire. Some people use part of the payout to pay down a mortgage or top up super; voluntary contributions have caps, so check before you transfer a large sum.

It can also be worth asking for an outplacement service, training budget or help with references as part of the package — employers often agree to these, and they can make the next step easier.

Finally, ask for your final payslip to list each component separately — redundancy, notice, annual leave, long service leave and ordinary pay — so you can check every line against the figures above.

Key redundancy figures (checked 5 November 2026)

Item2026-27
Tax-free base amount$13,598
Plus per completed year$6,801
ETP cap$270,000
ETP tax (under 60 / 60+)32% / 17%
NES redundancy pay4–16 weeks; 12 weeks from 10 years
Small business exemptionFewer than 15 employees

FAQ

How much redundancy pay after 10 years?

12 weeks of base pay under the NES (down from 16 weeks at 9 years), plus notice.

Why is redundancy pay lower at 10 years?

Because long service leave usually becomes payable at around 10 years, the NES scale drops to 12 weeks.

What is the total in this example?

About $39,440 after tax on $2,000 a week, including 5 weeks’ notice and 152 hours of annual leave, before long service leave.

Sources (checked 5 November 2026): Fair Work Act 2009 s 117 (notice) and s 119–121 (redundancy pay, small business exemption); Fair Work Ombudsman redundancy pay and notice pages; ATO “Key superannuation rates and thresholds — employment termination payments” (2026-27: $13,598 + $6,801, ETP cap $270,000; 2025-26: $13,100 + $6,552, $260,000); ATO “Genuine redundancy payments” and “Unused leave on termination”.

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