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Redundancy pay after 2 years (2026–27): 6 weeks, tax-free up to $27,200
Estimated final pay after tax
$15,300
Gross $16,346 · tax $1,046 · net $15,300
| Weekly base pay | $1,634.62 |
| Redundancy pay (NES: 6 weeks) | $9,808 |
| Notice in lieu (2 weeks) | $3,269 |
| Unused annual leave (10.0 days) | $3,269 |
| Long service leave NSW (0.00 weeks) | $0 |
| Gross final pay | $16,346 |
| Tax-free redundancy (limit $27,200) | $13,077 |
| Tax on leave (32%) | − $1,046 |
| Net final pay (estimate) | $15,300 |
No long service leave entitlement before 5 years in New South Wales. (Long Service Leave Act 1955 (NSW))
Two years: the age loading on notice opens here
Two completed years give 6 weeks of redundancy pay, and they unlock something that has nothing to do with redundancy pay itself. An employee over 45 gets an extra week of notice — but only once they have at least 2 years of continuous service, which is exactly this point on the scale. At this length of service that takes notice from 2 weeks to 3 weeks. It is the single provision in the NES that turns on age rather than service, and it is regularly missed in separation letters: the extra week is worth the same as any other week of base pay and is treated identically for tax. Anyone over 45 with two years behind them should check the notice line before the redundancy line.
Redundancy and notice after two years, by salary
Genuine redundancy, age 40, notice paid in lieu, NSW — so the age loading is not included here. Add one week of base pay for an employee over 45.
| Salary | Weekly base | Redundancy (6 wks) | Notice (2 wks) | Total | Tax-free | ETP tax |
|---|---|---|---|---|---|---|
| $60,000 | $1,154 | $6,923 | $2,308 | $9,231 | $9,231 | $0 |
| $75,000 | $1,442 | $8,654 | $2,885 | $11,538 | $11,538 | $0 |
| $90,000 | $1,731 | $10,385 | $3,462 | $13,846 | $13,846 | $0 |
| $110,000 | $2,115 | $12,692 | $4,231 | $16,923 | $16,923 | $0 |
| $130,000 | $2,500 | $15,000 | $5,000 | $20,000 | $20,000 | $0 |
| $160,000 | $3,077 | $18,462 | $6,154 | $24,615 | $24,615 | $0 |
Read the notice column as a floor. The NES sets a minimum; a contract or an enterprise agreement can set more, and where it does, the higher figure applies. What a contract cannot do is trade the notice away — pay in lieu is allowed, going without is not.
Frequently asked questions
Exactly how many weeks after 2 years?
6 weeks. The National Employment Standards work in bands, not on a sliding scale: the applicable band is “at least 2 years but less than 3”, and the next band starts on your 3rd 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.
Is the extra week based on age at dismissal or at hire?
At the time notice is given. Turning 45 during the notice period does not create the entitlement, and being 45 with fewer than two years of service does not either — both conditions have to be met on the day.
Can the employer make me work the notice instead of paying it out?
Yes, and it is the default. Notice worked is ordinary pay taxed at marginal rates; notice paid in lieu of a genuine redundancy is part of the termination payment and shares the tax-free limit. Which of the two you get changes the tax, not the amount.
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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