Australia Redundancy Pay 2026: The NES Scale Explained (with Examples)
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If your role is made redundant in Australia, the National Employment Standards (NES) set a minimum redundancy pay based purely on your length of service. This guide explains the scale and the famous 10-year quirk.
The NES scale
| Continuous service | Redundancy pay |
|---|---|
| 1 to <2 years | 4 weeks |
| 2 to <3 years | 6 weeks |
| 3 to <4 years | 7 weeks |
| 4 to <5 years | 8 weeks |
| 5 to <6 years | 10 weeks |
| 6 to <7 years | 11 weeks |
| 7 to <8 years | 13 weeks |
| 8 to <9 years | 14 weeks |
| 9 to <10 years | 16 weeks |
| 10 years or more | 12 weeks |
The 10-year drop is real
Redundancy pay peaks at 16 weeks for 9 to under 10 years, then falls to 12 weeks at 10+ years. It's not a mistake — once you hit 10 years you become entitled to long service leave, which is why the redundancy figure steps down.
Worked example
6 years and 3 months' service, $1,500 base weekly pay: the 6–7 year band is 11 weeks → 11 × $1,500 = $16,500.
Base rate only
Redundancy pay uses your base rate for ordinary hours. Overtime, penalty rates, bonuses and most allowances are excluded.
Exceptions
- Under 1 year: no redundancy pay (but notice and accrued leave still apply).
- Small business (fewer than 15 employees): generally exempt, unless an award/agreement says otherwise.
Frequently asked questions
How is redundancy pay calculated in Australia?
Under the National Employment Standards, redundancy pay is a set number of weeks based on your length of continuous service: 4 weeks at 1 year, rising to a peak of 16 weeks at 9–10 years, then dropping to 12 weeks at 10+ years. It's paid at your base rate of pay for ordinary hours.
Why does redundancy pay drop after 10 years?
It's a deliberate feature of the NES scale. Pay peaks at 16 weeks for 9 to under 10 years, then falls to 12 weeks at 10+ years, because employees with 10 years become entitled to long service leave, which offsets the reduction.
Is redundancy pay based on base or gross pay?
Base rate of pay for ordinary hours — it excludes overtime, penalty rates, bonuses, commissions and most allowances and loadings. An applicable award or enterprise agreement can treat some allowances differently.
Do small businesses have to pay redundancy pay?
Generally no. Employers with fewer than 15 employees are exempt from NES redundancy pay, though a modern award or enterprise agreement may still impose an obligation.
Do I get redundancy pay with under 1 year of service?
No NES redundancy pay applies with under 12 months of continuous service, but you may still be owed notice of termination and payout of accrued annual leave.