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Redundancy pay after 10 years (2026–27): 12 weeks, tax-free up to $81,608
Estimated final pay after tax
$38,011
Gross $43,590 · tax $5,580 · net $38,011
| Weekly base pay | $1,634.62 |
| Redundancy pay (NES: 12 weeks) | $19,615 |
| Notice in lieu (4 weeks) | $6,538 |
| Unused annual leave (10.0 days) | $3,269 |
| Long service leave NSW (8.67 weeks) | $14,167 |
| Gross final pay | $43,590 |
| Tax-free redundancy (limit $81,608) | $26,154 |
| Tax on leave (32%) | − $5,580 |
| Net final pay (estimate) | $38,011 |
Full entitlement after 10 years: paid on any termination. (Long Service Leave Act 1955 (NSW))
Ten years: the only point where redundancy pay goes down
Ten years is the strangest step on the NES scale. Redundancy pay rises to 16 weeks at nine years — the maximum — and then falls to 12 weeks the day you complete ten. Four weeks of entitlement disappear at an anniversary. The drafting is deliberate: at ten years long service leave is payable in every state and territory on any termination, 8.7 weeks in most of them and 13 in South Australia and the Northern Territory. The two provisions were designed to hand over to each other, and on any salary the long service leave is worth considerably more than the four weeks given up. It is still worth knowing that being made redundant a month before the anniversary pays more redundancy than a month after.
Redundancy and notice after ten years, by salary
Genuine redundancy, age 40, notice paid in lieu, NSW. Long service leave excluded — see the note below for what it adds.
| Salary | Weekly base | Redundancy (12 wks) | Notice (4 wks) | Total | Tax-free | ETP tax |
|---|---|---|---|---|---|---|
| $60,000 | $1,154 | $13,846 | $4,615 | $18,462 | $18,462 | $0 |
| $75,000 | $1,442 | $17,308 | $5,769 | $23,077 | $23,077 | $0 |
| $90,000 | $1,731 | $20,769 | $6,923 | $27,692 | $27,692 | $0 |
| $110,000 | $2,115 | $25,385 | $8,462 | $33,846 | $33,846 | $0 |
| $130,000 | $2,500 | $30,000 | $10,000 | $40,000 | $40,000 | $0 |
| $160,000 | $3,077 | $36,923 | $12,308 | $49,231 | $49,231 | $0 |
Add 8.7 weeks of long service leave to every line for a NSW employee, 13 for South Australia or the Northern Territory. Against that, the 4 weeks lost at the anniversary are a small price. The tax-free limit has also reached $81,608, which on these salaries still covers the redundancy and notice in full.
Frequently asked questions
Exactly how many weeks after 10 years?
12 weeks. The National Employment Standards work in bands, not on a sliding scale: the applicable band is “at least 10 years but less than 11”, and the next band starts on your 11th anniversary, except that service of 10 years or more stays at 12 weeks rather than rising further. 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.
Can I ask to be made redundant before the ten-year mark?
The timing is the employer’s decision, not yours, and asking rarely changes it. If the date is negotiable, compare the four extra weeks of redundancy before the anniversary against the long service leave that vests on any termination after it — in every state the leave is worth more.
Does the drop to twelve weeks apply to award redundancy too?
Only if the award or agreement copies the NES scale, and many do not. Enterprise agreements commonly pay a flat number of weeks per year of service with no cap and no drop at ten years. You receive the more generous of the two.
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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