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Redundancy pay after 3 years (2026–27): 7 weeks, tax-free up to $34,001
Estimated final pay after tax
$16,935
Gross $17,981 · tax $1,046 · net $16,935
| Weekly base pay | $1,634.62 |
| Redundancy pay (NES: 7 weeks) | $11,442 |
| 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 | $17,981 |
| Tax-free redundancy (limit $34,001) | $14,712 |
| Tax on leave (32%) | − $1,046 |
| Net final pay (estimate) | $16,935 |
No long service leave entitlement before 5 years in New South Wales. (Long Service Leave Act 1955 (NSW))
Three years: where notice steps up and the scale slows down
Three years is a step on two different scales, moving in opposite directions. Notice rises from 2 weeks to 2 weeks once you pass three years of service — the second of the three steps the NES provides. Redundancy pay, meanwhile, slows: the first years add two weeks each, from 4 weeks at one year to 6 weeks at two, and then the increment halves, giving 7 weeks at three. The scale is a staircase with uneven steps, not a rate per year of service, and the years where it barely moves are precisely where an award or an enterprise agreement — many pay a flat two or three weeks per year with no cap — is worth reading before accepting the statutory figure.
Redundancy and notice after three years, by salary
Genuine redundancy, age 40, notice paid in lieu, NSW. Leave excluded.
| Salary | Weekly base | Redundancy (7 wks) | Notice (2 wks) | Total | Tax-free | ETP tax |
|---|---|---|---|---|---|---|
| $60,000 | $1,154 | $8,077 | $2,308 | $10,385 | $10,385 | $0 |
| $75,000 | $1,442 | $10,096 | $2,885 | $12,981 | $12,981 | $0 |
| $90,000 | $1,731 | $12,115 | $3,462 | $15,577 | $15,577 | $0 |
| $110,000 | $2,115 | $14,808 | $4,231 | $19,038 | $19,038 | $0 |
| $130,000 | $2,500 | $17,500 | $5,000 | $22,500 | $22,500 | $0 |
| $160,000 | $3,077 | $21,538 | $6,154 | $27,692 | $27,692 | $0 |
On every salary in this table the 7 weeks of redundancy and 2 weeks of notice together stay below $34,001, the tax-free limit at three years of service. The ETP tax column is therefore zero throughout — the tax on a final pay at this length of service comes from the leave balance, which this table deliberately leaves out.
Frequently asked questions
Exactly how many weeks after 3 years?
7 weeks. The National Employment Standards work in bands, not on a sliding scale: the applicable band is “at least 3 years but less than 4”, and the next band starts on your 4th 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.
Why does the scale not simply add two weeks a year?
Because the NES scale was built as bands, not as a rate. The increments are two weeks up to two years, then one or two weeks alternating, reaching sixteen weeks at nine years before dropping to twelve at ten. The drop is deliberate: long service leave takes over at that point in most states.
Does a period as a casual count towards these three years?
Only if the casual employment was regular and systematic and you had a reasonable expectation that the work would continue — the test looks at the pattern of shifts, not at the label on the contract. Genuinely irregular casual shifts do not accrue service for redundancy pay, even after several years with the same employer. Where the pattern was regular, the casual period counts towards continuous service and can move you into a higher band.
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Written by Mottalib Radif
INSEAD MBA · Mines Saint-Étienne engineer · Personal finance and employment entitlements
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Rates 2026–27, last updated 2026-09-16