What you’re owed
- Redundancy pay: 5 to under 6 years = 10 weeks × $1,600 = $16,000.
- Notice: more than 3 and up to 5 years = 3 weeks. Paid in lieu: $4,800. (At 46 or over you’d get 4 weeks.)
- Annual leave: 100 unused hours × $1,600 ÷ 38 = $4,211.
Tax
The redundancy pay and notice ($20,800) form the genuine redundancy payment. The 2026-27 tax-free limit for 5 completed years is $13,598 + 5 × $6,801 = $47,603, so all $20,800 is tax-free. The annual leave is taxed at 32%: $1,347. Take-home: $23,663.
At other weekly pay (no leave included)
| Weekly pay | 10 weeks redundancy | 3 weeks notice | Total after tax |
|---|---|---|---|
| $1,200 | $12,000 | $3,600 | $15,600 |
| $1,500 | $15,000 | $4,500 | $19,500 |
| $1,600 | $16,000 | $4,800 | $20,800 |
| $2,000 | $20,000 | $6,000 | $26,000 |
| $2,500 | $25,000 | $7,500 | $32,500 |
Exactly 5 years or just under?
Service is counted in continuous years from your start date to your termination date (notice worked counts). At 4 years and 11 months you’d get 8 weeks, not 10 — worth checking the dates. Unpaid leave generally doesn’t count, but paid leave does.
Before you sign anything
- Check your award or enterprise agreement — many give more than the NES.
- Ask for a written breakdown: redundancy, notice, leave, final pay.
- Your employer must also consult and consider redeployment for a redundancy to be “genuine” under the Fair Work Act.
What “base pay” means
NES redundancy pay and notice are calculated on your base rate of pay for ordinary hours — not overtime, penalty rates, allowances, bonuses or loadings. If your hours have changed recently, the ordinary hours you normally worked are used. Casual employees are not entitled to NES redundancy pay unless they have become permanent (for example through casual conversion).
You should receive your final pay, redundancy pay and leave within the time set by your award or agreement — for many modern awards, within 7 days of the termination. The payment summary will show the tax-free and taxable components separately.
Take a moment, too, for the practical side: ask for a statement of service for your next employer, check your super fund details are up to date, and download your recent payslips before your work email is closed.
Key redundancy figures (checked 5 November 2026)
| Item | 2026-27 |
|---|---|
| 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 pay | 4–16 weeks; 12 weeks from 10 years |
| Small business exemption | Fewer than 15 employees |
FAQ
How much redundancy pay after 5 years?
10 weeks of base pay under the NES — $16,000 on $1,600 a week — plus 3 weeks’ notice or pay in lieu.
Is redundancy pay after 5 years taxed?
Not up to $47,603 in 2026-27 ($13,598 + 5 × $6,801). Unused annual leave is taxed at 32%.
What is the total payout in this example?
About $23,663 after tax, including 100 hours of annual 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”.