Redundancy Pay After Tax
A careful guide to estimating redundancy payments and take-home impact.
Do not treat every payment the same
A redundancy package may include ordinary wages, unused leave, notice, tax-free components and employment termination payments.
Ask for the breakdown
Before estimating, get the employer's payment breakdown and the intended withholding treatment.
Plan conservatively
Use general estimates for budgeting, but avoid relying on a simple salary model for final redundancy tax.
Common questions
Is redundancy pay tax free?
Some genuine redundancy components may receive concessional treatment, but not every part of a package is tax free.
Can this site estimate redundancy today?
It provides a foundation page and guidance, but detailed redundancy tax needs specialised inputs.