A worked example
Sarah works as a project manager in Victoria and has been with the same employer for 11 years. Her current annual salary is $95,000, which works out to $1,826.92 per week (based on 52 weeks).
In Victoria, employees are entitled to long service leave after 7 years of continuous service. Sarah accrues 13 weeks of leave for her first 10 years, plus an additional 1.3 weeks for the 11th year (Victoria's rate is 1.3 weeks per year after the first 10 years).
Sarah's total LSL entitlement is 14.3 weeks. To calculate the payout value: 14.3 weeks × $1,826.92 = $26,125 (rounded).
If Sarah takes 4 weeks of long service leave, she'll be paid $7,307.68 for that period, and her remaining entitlement will be 10.3 weeks worth $18,817. The leave is paid at her ordinary rate of pay, not including overtime or bonuses unless they form part of her regular salary package.
State-by-state differences
- NSW: Full entitlement of 2 months (8.6667 weeks) after 10 years of continuous service. Pro-rata payment on termination is available after 5 years, but only if you resign due to illness, incapacity, domestic or pressing necessity (or are dismissed for reasons other than serious misconduct). From 10 years you accrue further LSL at the standard rate.
- Victoria: Entitled after 7 years of continuous service. Pro-rata payment available after 7 years on termination. You accrue 13 weeks for the first 10 years, then 1.3 weeks per year.
- Queensland: 8.6667 weeks after 10 years, then 0.8667 weeks per year. Pro-rata applies after 7 years (but only paid on termination after 10 years in some cases).
- WA: 8.6667 weeks after 10 years, accruing at 0.8667 weeks per year. Pro-rata entitlement after 7 years if employment ends.
- SA: 13 weeks after 10 years of service, then 1.3 weeks per year. Pro-rata from 7 years on termination.
- Tasmania: 8.6667 weeks after 10 years. Pro-rata payment is available on termination after 7 years in most circumstances (earlier in limited cases like death or specified hardship).
- ACT: Follows a similar model to NSW, with entitlements starting after shorter periods for certain workers.
- NT: 8.6667 weeks after 10 years, with pro-rata from 7 years in some circumstances.
Common mistakes people make
- Assuming all states have the same entitlement rules. Long service leave is state-based, not federal. Someone moving from NSW (entitled after 5 years) to Tasmania (10 years) can't combine their accrual unless they stay with the same corporate group. Always check your state's specific legislation.
- Thinking overtime and bonuses are included in LSL payments. Long service leave is paid at your ordinary rate of pay. One-off bonuses, overtime, and allowances usually don't count unless they're a regular, ongoing part of your salary. Check your employment contract and award for specifics.
- Believing you lose LSL if you resign before the qualifying period. Many states have pro-rata provisions. In NSW, pro-rata LSL is payable on termination after 5 years only if you leave due to illness, incapacity, or domestic/pressing necessity (or are dismissed for something other than serious misconduct). Plain resignation after 5 years usually doesn't trigger it. In Victoria, it's 7 years. Don't assume you forfeit everything just because you haven't hit 10 years.
- Not realising LSL accrues during paid leave but not unpaid leave. Your long service leave continues to accrue during annual leave, sick leave, and parental leave (paid or unpaid up to 52 weeks in most states). Extended unpaid leave usually pauses accrual. This trips up people returning from career breaks.
What this calculator doesn't account for
This calculator provides a general estimate based on continuous service with one employer and standard state entitlements. It doesn't account for enterprise bargaining agreements or modern awards that may offer better terms than the state minimum. If your employment contract specifies different accrual rates, those take precedence.
The calculator assumes your pay rate remains constant and doesn't factor in salary changes over time, shift loadings, or allowances that may or may not count as ordinary pay. It also doesn't handle situations where you've had breaks in service, transferred between related companies, or worked across multiple states with the same employer group.
Complex scenarios like redundancy, invalidity, or death entitlements have different rules in each state and aren't covered here. Always check your payslips and speak to your HR department or Fair Work for personalised advice.
Edge cases and nuances
- Working for related corporate entities: If you move from one subsidiary to another within the same corporate group, some states allow your service to be recognised as continuous. This is fact-specific and depends on whether there's a genuine transfer under state LSL legislation (e.g., section 5 of the NSW Long Service Leave Act 1955). Get it in writing from your employer.
- Parental leave beyond 52 weeks: Most states count paid parental leave and the first 52 weeks of unpaid parental leave as service for LSL. If you take 18 months off, the extra 26 weeks may not count toward your accrual, depending on your state's rules.
- Casual employees: Long service leave historically applied to permanent employees only, but some states now extend it to long-term casuals in certain industries (particularly construction and community services). Check your state's portable LSL schemes if you've worked for multiple employers in the same sector.
- Taxation of lump-sum payouts: If you're paid out LSL on termination, the tax treatment depends on whether you've reached preservation age (currently 60) and how the payment is classified. Genuine redundancy and invalidity have different tax-free thresholds under ATO rules.
