What goes into your final pay
The Fair Work Ombudsman lists what a final pay must include:
- Wages owing for hours worked, including penalty rates and allowances.
- Unused annual leave, including leave loading if it would have been paid during employment.
- Payment in lieu of notice (if it applies).
- Redundancy pay (if it applies).
- Accrued or pro-rata long service leave (if it applies).
Unused sick and carer's leave is not paid out. Most awards require the whole final pay within 7 days of your last day; pay in lieu of notice is due by the day employment ends.
Resignation, dismissal or redundancy: what changes
| Item | You resign | You're dismissed (not misconduct) | You're made redundant |
|---|---|---|---|
| Notice | You give notice set by your award or contract | Employer gives NES notice or pays it out | Employer gives NES notice or pays it out |
| Redundancy pay | None | None | NES weeks (if 1+ year and 15+ employees), plus any top-up |
| Unused annual leave | Paid out, with loading if you'd normally get it | Paid out, with loading if you'd normally get it | Paid out, with loading if you'd normally get it |
| Tax on unused leave | Marginal rates | Marginal rates | Flat 32% (genuine redundancy) |
| Long service leave | Depends on your state (pays from 7 years in VIC, WA, SA and the ACT) | Pro-rata in every state once past its threshold (QLD has extra conditions) | Pro-rata in every state once past its threshold |
Serious misconduct changes the picture again: no notice, no NES redundancy pay, and in most states no pro-rata long service leave before the full qualifying period. Annual leave is still paid out.
A worked example
48 years old, $91,000 salary, 6 years of service, made genuinely redundant with notice paid out and 2.5 weeks of annual leave owing:
| Component | Gross | Tax |
|---|---|---|
| Notice paid in lieu (5 wks — folded into redundancy for tax) | $8,750 | $0 |
| Redundancy pay (11 wks) | $19,250 | $0 |
| Unused annual leave (2.5 wks) | $4,375 | $1,400 |
| Net final pay | $30,975 | |
The notice (5 weeks — including the over-45 extra week) folds into the genuine-redundancy tax-free amount here, which is why its tax column is zero: the whole redundancy component sits inside the $13,598 + $6,801-per-year limit. Only the unused leave is taxed, at the flat 32% redundancy rate.
If the same person resigned instead and worked their notice, the final pay would be just the unused leave: $4,375 gross, taxed at marginal rates ($1,400), leaving $2,975. The redundancy is worth $28,000 more after tax.
Before you sign off on your final pay
- Check your hourly or weekly rate, and that wages run right up to your last day.
- Count your annual leave balance from your last payslip, and check whether loading applies under your award.
- If notice was paid out, check it includes the allowances, penalties and loadings you'd have earned working it.
- Check your long service leave in the calculator for your state; employers often miss pro-rata entitlements.
- Check super was paid on any pay in lieu of notice (it is the only termination payment that attracts it).
- If your employer can't pay because it is in liquidation, see when your employer goes broke.
Frequently asked questions
What should my final pay include?
Outstanding wages up to your last day, payout of unused annual leave (plus leave loading if you get it when taking leave), notice — worked or paid in lieu, redundancy pay if applicable, and long service leave where your state rules trigger a payout. Sick leave is NOT paid out.
How much notice am I entitled to?
The NES minimum runs from 1 week (a year or less of service) to 4 weeks (over 5 years), plus 1 extra week if you are over 45 with at least 2 years of service. Awards and contracts can require more. Casuals get no notice.
When must final pay be paid?
Most awards require final pay within 7 days of your last day, and pay in lieu of notice is due on or before the day employment ends. Where no award or agreement sets a rule, the Fair Work Act still requires pay at least monthly. Check your award for the specific rule.
Is unused sick leave paid out when I leave?
No — accrued but untaken personal/carer's leave is not paid out on termination (a handful of older agreements are exceptions). It simply lapses.
Is notice paid in lieu taxed?
Yes — as an employment termination payment. On a genuine redundancy it forms part of the redundancy payment and can fall inside the tax-free limit; on other terminations it is withheld at 32% (17% at or over preservation age) up to the applicable cap.
Does leave loading apply to my leave payout?
If your award or agreement gives you 17.5% loading when taking annual leave, it must also be paid on the termination payout — even if the award says otherwise. Toggle it on above if that's you.
Related tools
- Redundancy payout calculator — the redundancy component in full detail
- Long service leave calculator — is your LSL payable, and how much?
- Redundancy tax explained
- Notice periods and pay in lieu — what in-lieu pay must include
- Unused annual leave on termination — loading, timing and tax
- Super on redundancy and final pay — what attracts the 12%
- How long service leave is taxed when you leave
- When your employer goes broke — the Fair Entitlements Guarantee
Sources
Figures on this page come from the following primary sources. The date is when we last checked the page against the source.
- Notice and ending employment (dismissal) (Fair Work Ombudsman), checked 24 September 2026.
- Final pay (Fair Work Ombudsman), checked 24 September 2026.
- Payment for annual leave (Fair Work Ombudsman), checked 7 August 2026.
- Redundancy pay and entitlements (Fair Work Ombudsman), checked 7 August 2026.
- Schedule 7: tax table for unused leave payments on termination (ATO), checked 7 August 2026.
- Schedule 11: tax table for employment termination payments (ATO), checked 7 August 2026.
- Genuine redundancy payments (ATO), checked 10 August 2026.
Rates current for FY 2026–27, last verified 2026-08-07. Independent guide — not a government service, and not financial or legal advice.