Department of Employment Cuts Staffing Costs
The department spent $12.9 million on staff exits during 2025-26 while initiating a new round of voluntary redundancies.
Updated on Oct. 28, 2026 in Military Jobs
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The Department of Employment and Workplace Relations recorded $12.9 million in redundancy and separation costs throughout 2025-26. This figure marks a significant increase from the $5.2 million spent on staff exits during the 2024-25 financial year.
Why it matters
The department is utilising these measures to realign staff capabilities with the current demands of front-line employment services. Officials report that they do not expect any involuntary redundancies will be required to achieve these staffing goals.
The department spent $4.1 million on five senior executive service exits in 2025-26, with each individual receiving $828,980. This average payout is approximately 10 times higher than the $85,000 provided to lower-ranked APS staff.
The players
Department of Employment and Workplace Relations
This Australian government agency is responsible for national policies and programmes relating to employment, skills, and workplace relations.
The details
As of 23 October 2026, the department had made 101 voluntary redundancy offers for the 2026-27 period, with 91 employees accepting the terms. While senior executive service staff remain ineligible for standard voluntary redundancies, two personnel accepted specific incentives to retire in the current round.
Timeline
2024-25: The department spent $5.2 million on staff exits.
2025-26: The department spent $12.9 million on redundancies and separations.
23 October 2026: 101 redundancy offers were made and 91 were accepted.
2026-27: A new round of voluntary redundancy offers was initiated.
Market Landscape
The department's staffing adjustments follow the established guidelines for managing public sector human resources within the Australian Public Service employment framework. This shift reflects a wider government trend, which has seen $711 million in total exit spending across agencies over four years.
These internal organisational changes are designed to streamline front-line employment services without impacting public access to existing programmes. Clients should notice no disruption to service availability as the department reshapes its workforce capabilities.
The takeaway
Organisations often use voluntary redundancy programmes to align internal expertise with shifting operational needs. Employees interested in similar transitions should regularly review departmental policy updates regarding retirement incentives and redundancy terms.
Further reading
Learn more about the latest career shifts within the sector in our Military Jobs section.
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Is it appropriate for government departments to pay high executive exit packages during staff reduction rounds?
