Long Service Leave Calculator

Long service leave across Australian states and territories

Unlike annual leave and personal leave, long service leave (LSL) in Australia is governed by state and territory legislation rather than the National Employment Standards. This means the qualifying period, entitlement amount, and pro-rata rules vary depending on where you work.

Most states require 10 years of continuous service before an employee becomes entitled to LSL, with the standard entitlement being 8.667 weeks (2 calendar months). Victoria and the ACT are notable exceptions, with qualifying periods of 7 years. After the initial qualifying period, additional leave continues to accrue for ongoing service.

How to use this long service leave calculator

1. Select the state or territory where the employee works - this determines the qualifying period and accrual rate.
2. Enter the employee's start date (or the date continuous service commenced if they transferred from a related entity).
3. Enter the employee's current weekly pay rate for ordinary hours.
4. Review the accrued entitlement in weeks and days, the dollar value of the entitlement at current rates, and whether the qualifying threshold has been reached.

State-by-state LSL rules and pro-rata entitlements

NSW: 8.667 weeks after 10 years, with pro-rata payable on termination after 5 years. Victoria: 8.667 weeks after 7 years under the Long Service Leave Act 2018, with pro-rata after 7 years. Queensland: 8.667 weeks after 10 years, pro-rata after 7 years. Western Australia: 8.667 weeks after 10 years, pro-rata on termination after 7 years in most cases. South Australia: 13 weeks after 10 years (the most generous entitlement in the country), pro-rata after 7 years. Tasmania: 8.667 weeks after 10 years, pro-rata after 7 years. ACT: 6.0667 weeks after 7 years. NT: 13 weeks after 10 years. These rules are legislated minimums - enterprise agreements and contracts can provide more generous entitlements. The building and construction industry in most states has a portable LSL scheme where entitlements transfer between employers.

LSL liabilities and financial reporting

Long service leave represents a significant liability on the balance sheet for businesses with long-tenured employees. Employers should be provisioning for LSL obligations progressively, rather than being caught off guard when employees reach their qualifying periods. The liability is calculated at the employee's current rate of pay, not the rate when they started accruing. For a full-time employee earning $85,000 per year with 10 years of service in NSW, the LSL liability is approximately $14,200. Across a workforce of 50 long-tenured employees, this can represent over $700,000 in liabilities that must be funded from operating cash flow when the leave is taken or paid out.

Tracking employee liabilities with better systems

Employee leave liabilities need to be reflected accurately in financial statements. When accounts payable and payroll processes are manual and disconnected, leave provisions are often estimated rather than precisely calculated. Automating AP processes improves the accuracy of all financial data, including employee-related liabilities, giving you a reliable view of your true obligations.