Redundancy Pay Calculator

New Zealand has no statutory redundancy entitlement, so any redundancy payment comes from your employment agreement or a negotiated settlement. This Redundancy Pay Calculator works out the lump sum from the formula most contracts use, which is a set number of weeks of pay for each year of service. You enter your gross weekly pay, your completed years of service, and the number of weeks of pay your agreement provides for each year. The tool multiplies these together to give the total redundancy payment before tax. For example, a common clause of four weeks pay per year of service, with weekly pay of $1,200 over five years, produces 20 weeks of pay and a $24,000 payout. Workers facing a restructure, HR teams modelling exit costs, and anyone checking a settlement offer use this to sanity-check the numbers before signing. Redundancy payments are taxable as a lump sum payment and are taxed using the extra pay rules, so the amount that lands in your account will be less than the gross figure shown here. Good practice is to read your individual or collective agreement carefully, since some cap the total weeks or scale the rate after a certain length of service. Always count only completed years unless your contract says otherwise, and check whether notice pay and unused annual leave are paid on top. Get advice from a union or employment lawyer before you accept any offer, as terms are often negotiable.

Total = weekly pay x weeks per year x years of service. Taxable as a lump sum. Estimate only, not financial or tax advice.