Redundancy Calculator

Calculate Service and Ordinary Pay

Base pay for ordinary hours. Exclude overtime, bonuses and penalty rates for the NES calculation.

NES redundancy uses base pay and excludes loadings, including casual and annual leave loading. Keep the worksheet’s loading components outside the redundancy pay field.

An agreement can define its pay base differently. Enter only the wage components that its redundancy clause includes. A loading payable for work or leave does not establish entitlement to that loading on redundancy.

Multiply ordinary weekly pay by the payable weeks for the applicable service band. Five completed years at $1,500 per week gives 10 weeks and $15,000 under the NES.

The NES schedule rises to 16 weeks at nine years, then falls to 12 weeks at ten years. At the same weekly pay, those estimates are $24,000 and $18,000.

The date calculation counts completed calendar anniversaries. Select verified completed years if excluded absences or recognised service change that count. Review a leap-day anniversary under the applicable instrument.

Weekly equivalents use fortnightly pay divided by two, monthly pay multiplied by 12 and divided by 52, or annual pay divided by 52. Enter actual part-time ordinary pay.

The Fair Work redundancy factsheet sets out the NES schedule and exclusions. Most casuals, apprentices and small-business employees are excluded, with exceptions. Fixed-term arrangements and employment history also affect entitlement.

Select the Applicable Scheme

Use the NES setting for an employee covered by that minimum entitlement. State location alone does not decide which employment system or agreement applies.

For an Australian Public Service agency, Victorian public-sector employer or another agreement, select entered terms and record the instrument and clause. Enter the total payable weeks calculated under that instrument.

Account for any minimum, maximum, age adjustment and part-time service history before entering the multiplier. For example, an entered 21-week entitlement at $1,500 per week produces $31,500.

The entered setting performs multiplication only. It does not validate an agreement, determine eligibility or automatically add an NES minimum. Fair Work’s award and agreement guidance explains why the applicable instrument matters.

Most employers with fewer than 15 employees are exempt. Associated entities and regular casuals count. Insolvency downsizing can preserve liability.

Separate Gross Pay From Tax

For an eligible 2026/27 genuine redundancy payment, the tax-free limit is $13,598 plus $6,801 for each completed year recognised for tax.

Five years gives a $47,603 limit. With a qualifying $60,000 payment and no earlier use of that limit, $47,603 is tax-free and $12,397 requires further tax assessment.

Genuine redundancy depends on dismissal because the job is redundant and the amount exceeding what voluntary departure would attract. Age restrictions and arm’s-length payment rules apply. Re-employment arrangements can prevent qualification.

Keep wages and unused leave separate. Payment in lieu of notice needs its own classification and can form part of a qualifying redundancy payment. Avoid counting it twice.

The ATO withholding schedules contain the 2026/27 formula and termination-payment examples. Confirm classification against the ATO genuine redundancy conditions before selecting confirmed.

2026/27 payments only. This separate calculation uses the qualifying payment and tax service you enter. It does not calculate final tax or take-home pay.

The excess is an amount requiring tax assessment, not the tax payable. Employment termination payment rules, age and income affect its treatment.

Check an Employee Claim

Retain the employment contract and governing agreement with payroll records. Reconcile ordinary hours, pay changes and recognised service against the termination letter and leave records.

The worksheet separates ordinary wages, casual loading, annual leave pay and annual leave loading from notice and redundancy. Its CSV retains the instrument and pay basis.

Choose the employment type and identify the applicable award or agreement for the relevant pay period before entering a loading rate. Rates are entered assumptions.

Under clause 11.1 of the Clerks Private Sector Award, casual loading is 25% of the minimum hourly rate. Other instruments require their own assessment.

Enter the casual-loading base separately from actual wages. Under the Clerks Award, use ordinary hours multiplied by the applicable minimum hourly rate.

For illustration, 25 hours at an actual $32 base rate gives $800 ordinary wages. With a $26 applicable minimum, the loading base is $650.

At 25%, loading is $162.50 and total wages are $962.50. Enter $800 before loading or $962.50 with loading included, keeping the $650 loading base.

Where the loading base also equals $800, the same 25% produces $200 loading and $1,000 total wages. The applicable instrument determines the base.

Correct: enter $1,000 in Unpaid wages and choose Loading included. Enter $800 in Casual-loading base and 25% in Casual loading. The worksheet shows $800 ordinary wages and $200 loading. Incorrect: adding another 25% overstates wages as $1,250.

Casual employment has no NES paid annual leave. The casual setting excludes annual leave and NES redundancy. Assess accrued leave from an earlier permanent period separately.

Annual leave loading depends on the instrument. Clerks Award clause 32.3 compares 17.5% of the minimum hourly rate with the applicable weekend or shiftwork amount.

Determine the applicable comparison before entering a percentage. The leave-loading base can differ from actual leave pay when an employee receives an over-award rate.

For example, $2,000 leave pay with an established $1,600 loading base and an applicable 17.5% rate gives $280 loading and $2,280 total leave pay.

Enter leave pay before loading and exclude loading already paid. Enter separately assessed leave components in separate worksheets when their rates or bases differ.

Fair Work’s annual leave payment guidance requires unused annual leave payments to include loading payable if the employee had taken the leave.

Retain timesheets and the payslip rate breakdown to show whether the hourly rate already includes loading. Keep leave accruals and the instrument’s comparison calculation with the worksheet.

Keep the claimed entitlement separate from admission of the claim, statutory priorities and guarantee limits. Available assets and the insolvency process determine recovery. The worksheet does not assess those factors.

Use the liquidator investigations guide for the records and investigations supporting creditor claims.

The total records claimed amounts. Eligibility, creditor priority and Fair Entitlements Guarantee limits need separate assessment.

These figures estimate entitlements. They do not estimate an insolvency distribution or guaranteed recovery.

Your entries remain in this tab and clear on reload.