Updated on
Redundancy pay after 1 year (2026–27): 4 weeks, tax-free up to $20,399
Estimated final pay after tax
$10,396
Gross $11,442 · tax $1,046 · net $10,396
| Weekly base pay | $1,634.62 |
| Redundancy pay (NES: 4 weeks) | $6,538 |
| Notice in lieu (1 weeks) | $1,635 |
| Unused annual leave (10.0 days) | $3,269 |
| Long service leave NSW (0.00 weeks) | $0 |
| Gross final pay | $11,442 |
| Tax-free redundancy (limit $20,399) | $8,173 |
| Tax on leave (32%) | − $1,046 |
| Net final pay (estimate) | $10,396 |
No long service leave entitlement before 5 years in New South Wales. (Long Service Leave Act 1955 (NSW))
The twelve-month line, and the employers it does not apply to
One year is where redundancy pay begins to exist at all. Below twelve months of continuous service the National Employment Standards give you 1 week of notice and your accrued leave, and nothing else — no redundancy pay, whatever the reason the job ended. Cross the twelve-month mark and 4 weeks appear. There is a second line that matters just as much at this length of service: an employer with fewer than 15 employees is a small business under the Act and owes no redundancy pay at any length of service. Head count includes casuals employed on a regular and systematic basis, and associated entities are counted together — which is why the number of people on the payroll is worth checking before accepting that nothing is owed.
Redundancy and notice after one year, by salary
Genuine redundancy, age 40, notice paid in lieu, NSW. Leave excluded so that the statutory components stand alone.
| Salary | Weekly base | Redundancy (4 wks) | Notice (1 wks) | Total | Tax-free | ETP tax |
|---|---|---|---|---|---|---|
| $60,000 | $1,154 | $4,615 | $1,154 | $5,769 | $5,769 | $0 |
| $75,000 | $1,442 | $5,769 | $1,442 | $7,212 | $7,212 | $0 |
| $90,000 | $1,731 | $6,923 | $1,731 | $8,654 | $8,654 | $0 |
| $110,000 | $2,115 | $8,462 | $2,115 | $10,577 | $10,577 | $0 |
| $130,000 | $2,500 | $10,000 | $2,500 | $12,500 | $12,500 | $0 |
| $160,000 | $3,077 | $12,308 | $3,077 | $15,385 | $15,385 | $0 |
The tax-free column is the striking one at this length of service: $20,399 of exempt room against 4 weeks of entitlement. On none of these salaries does the redundancy component come close, because the $13,598 base is granted in full from the first completed year and is not pro-rated. The ETP tax column is empty for that reason.
Frequently asked questions
Exactly how many weeks after 1 year?
4 weeks. The National Employment Standards work in bands, not on a sliding scale: the applicable band is “at least 1 year but less than 2”, and the next band starts on your 2nd anniversary. A day short of an anniversary is a full band short, so the exact start date on your contract is worth checking against the date notice is given.
Does a probation period count towards the twelve months?
Yes. Continuous service runs from your start date, not from the end of probation. What breaks it is a genuine end of employment followed by a new engagement — not a change of role, a transfer inside the same group, or the transition from casual to permanent when the work has been regular.
How is the 15-employee count made?
At the moment notice is given, counting all employees of the employer and of any associated entities, full-time, part-time and regular casuals alike. Only the employees being dismissed at the same time are counted as well. It is a head count, not a full-time-equivalent one.
Related calculators & guides
Sources
Written by Mottalib Radif
INSEAD MBA · Mines Saint-Étienne engineer · Personal finance and employment entitlements
Updated on · Editorial policy · Contact
Rates 2026–27, last updated 2026-09-16