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Redundancy pay after 7 years (2026–27): 13 weeks, tax-free up to $61,205
Estimated final pay after tax
$36,755
Gross $40,975 · tax $4,220 · net $36,755
| Weekly base pay | $1,634.62 |
| Redundancy pay (NES: 13 weeks) | $21,250 |
| Notice in lieu (4 weeks) | $6,538 |
| Unused annual leave (10.0 days) | $3,269 |
| Long service leave NSW (6.07 weeks) | $9,917 |
| Gross final pay | $40,975 |
| Tax-free redundancy (limit $61,205) | $27,788 |
| Tax on leave (32%) | − $4,220 |
| Net final pay (estimate) | $36,755 |
Pro-rata after 5 years (New South Wales). (Long Service Leave Act 1955 (NSW))
Seven years: fully vested in Victoria, pro-rata in four more states
At seven years the NES gives 13 weeks of redundancy pay, and long service leave changes character in most of the country. Victoria and the ACT vest the entitlement outright at seven years under the Long Service Leave Act 2018 (Vic): the full accrued amount — around 6.1 weeks — is payable on termination whatever the reason, resignation included. Queensland, Western Australia, South Australia and Tasmania open their pro-rata at the same seven-year mark, but only where the employer ends the job or the employee leaves for a recognised reason. New South Wales has already been paying pro-rata since five years. Seven years is therefore the point at which every state and territory owes something, and the amount owed starts to rival the redundancy payment itself.
Redundancy and notice after seven years, by salary
Genuine redundancy, age 40, notice paid in lieu, NSW. Leave and long service leave excluded.
| Salary | Weekly base | Redundancy (13 wks) | Notice (4 wks) | Total | Tax-free | ETP tax |
|---|---|---|---|---|---|---|
| $60,000 | $1,154 | $15,000 | $4,615 | $19,615 | $19,615 | $0 |
| $75,000 | $1,442 | $18,750 | $5,769 | $24,519 | $24,519 | $0 |
| $90,000 | $1,731 | $22,500 | $6,923 | $29,423 | $29,423 | $0 |
| $110,000 | $2,115 | $27,500 | $8,462 | $35,962 | $35,962 | $0 |
| $130,000 | $2,500 | $32,500 | $10,000 | $42,500 | $42,500 | $0 |
| $160,000 | $3,077 | $40,000 | $12,308 | $52,308 | $52,308 | $0 |
The redundancy column is only part of the story at this length of service. Seven years of accrual at 0.8667 weeks per year — 1.3 in South Australia and the Northern Territory — puts long service leave in the same order of magnitude as the 13 weeks shown here, and it is paid on top.
Frequently asked questions
Exactly how many weeks after 7 years?
13 weeks. The National Employment Standards work in bands, not on a sliding scale: the applicable band is “at least 7 years but less than 8”, and the next band starts on your 8th 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 Victorian long service leave really payable on a resignation?
Yes, from seven years. The Long Service Leave Act 2018 (Vic) vests the entitlement at that point and makes the accrued balance payable on termination for any reason. It is the most generous of the eight regimes on this specific point.
What happens to long service leave if the business is sold?
Service usually transfers with the business where the employee continues in the same work, so the clock does not restart. The purchaser inherits the accrued liability. Where the employee is not offered continuing employment, the accrued entitlement is payable by the outgoing employer.
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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