Long service leave is a paid leave entitlement Australian employees accrue after a significant period of continuous service. Unlike annual leave, which accrues from the first year, long service leave kicks in after a much longer period — typically 7 to 10 years depending on the state. The calculation involves checking the applicable state legislation, confirming eligibility, and applying the accrual rate for the relevant service period.

This guide covers how to calculate long service leave across Australian states, including eligibility, accrual, pro-rata entitlements, and payout.

Key Takeaways

  • Long service leave is state-based legislation, not a federal entitlement — the rules differ across NSW, Victoria, Queensland, South Australia, Western Australia, and other states.
  • The most common entitlement is 2 months (8.67 weeks) of paid leave after 10 years of continuous service.
  • Some states allow pro-rata long service leave after 7 years (NSW) or require the full 10 years (Queensland).
  • Leave accrues at a rate of 1 month per 10 years of service (or 0.1154 weeks per year worked, depending on the state).
  • Long service leave is paid at the employee’s ordinary rate of pay — leave loading is typically not included.

Step 1: Identify the applicable state legislation

Long service leave is governed by state and territory legislation, not the Fair Work Act. The key legislation is:

State/Territory Legislation
NSW Long Service Leave Act 1955
Victoria Long Service Leave Act 2018
Queensland Industrial Relations Act 2016
South Australia Long Service Leave Act 1987
Western Australia Long Service Leave Act 1958
Tasmania Long Service Leave Act 1976
ACT Long Service Leave Act 1976
NT Long Service Leave Act 1981

The employee’s place of work determines which legislation applies, not their state of residence.

Step 2: Confirm continuous service

Long service leave requires a period of continuous service — unbroken employment with the same employer (or associated entities). Service is usually calculated from the date of commencement, including:

  • Paid leave (annual leave, personal/carer’s leave)
  • Workers’ compensation leave (in some states)
  • Periods of long service leave already taken

Service is generally not broken by:

  • A single period of unpaid leave of up to 12 months (varies by state)
  • A period of parental leave (in most states)

Step 3: Check the eligibility threshold

The threshold varies by state:

  • NSW, Victoria, ACT: Pro-rata entitlement after 7 years; full entitlement after 10 years.
  • Queensland, South Australia: Full entitlement after 10 years. No pro-rata in most cases.
  • Western Australia: Full entitlement after 10 years; pro-rata after 7 years.
  • Tasmania: Full entitlement after 10 years; pro-rata after 7 years.

Pro-rata means the employee receives a fraction of the full entitlement based on years worked. In NSW, after 8 years of service:

Pro-rata entitlement = (years of service ÷ 10) × 2 months

8 years: (8 ÷ 10) × 2 months = 1.6 months of leave.

Step 4: Calculate the accrual amount

For the standard 10-year entitlement:

Long service leave = 2 months (approximately 8.67 weeks or 43.3 business days for a 5-day week)

For ongoing accrual beyond 10 years, the entitlement continues to accrue at the same rate:

  • 10 years: 2 months
  • 15 years: 3 months
  • 20 years: 4 months

Converting months to hours

For a 38-hour week:

  • 2 months = approximately 8.67 weeks × 38 hours = 329.5 hours of long service leave

The exact conversion depends on the employee’s ordinary hours of work during the period.

Step 5: Calculate the payout

When an employee takes long service leave, it is paid at their ordinary rate of pay at the time the leave is taken — not when it was accrued. This is an important distinction: the employee receives current pay, not historical pay.

For a payout on termination (in states that allow it):

Payout = Hourly rate at termination × Hours of accrued long service leave

Example: Employee has accrued 329.5 hours of long service leave and their current hourly rate is $40.

  • Payout = $40 × 329.5 = $13,180

Leave loading on long service leave

In most states, leave loading is not paid on long service leave. However, some enterprise agreements or awards may provide for it. Check the applicable instrument.

Step 6: Handle state-specific variations

NSW

  • Pro-rata after 7 years for employees who leave voluntarily or are dismissed for reasons other than serious misconduct.
  • Full entitlement after 10 years.
  • Payment in lieu of leave is permitted on termination.

Victoria

  • Similar to NSW with pro-rata after 7 years.
  • The Long Service Leave Act 2018 introduced changes to how service is counted for casual and seasonal employees.

Queensland

  • Full entitlement after 10 years.
  • No pro-rata entitlement on termination unless the employee has completed at least 7 years.

Western Australia

  • Pro-rata after 7 years for employees who are terminated or die.
  • Full entitlement after 10 years for taking leave.

Common long service leave calculation errors

1. Confusing state legislation

Long service leave is state-based. An employer with employees across multiple states must apply the correct legislation for each employee.

2. Not counting service correctly

Service typically includes paid leave periods but may exclude unpaid leave longer than 12 months. Getting the service start date wrong is a common error.

3. Paying the wrong rate

Long service leave is paid at the current ordinary rate, not the rate when the leave accrued. Some employers incorrectly use the historical rate.

4. Missing pro-rata entitlements

In states where pro-rata applies (NSW, Victoria, WA, TAS), terminating an employee before the full 10-year threshold does not mean zero entitlement.

Putting it into practice

Five checks cover most long service leave calculations:

  1. Confirm which state legislation applies to the employee based on their place of work.
  2. Calculate continuous service from the date of commencement, including qualifying periods of paid leave.
  3. Determine whether the employee has reached the eligibility threshold (10 years full, or 7 years pro-rata).
  4. Calculate the accrual: 2 months per 10 years, pro-rated if applicable.
  5. Pay at the current ordinary rate of pay and check whether leave loading applies under the applicable Award or agreement.
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Frequently Asked Questions

What is long service leave in Australia?

Long service leave is a paid leave entitlement Australian employees accrue after a significant period of continuous service — typically 10 years for the full entitlement of 2 months. Some states allow pro-rata access after 7 years.

Is long service leave a federal or state entitlement?

It is a state-based entitlement. Each state and territory has its own legislation governing eligibility, accrual, and payment rules.

How much long service leave do you accrue?

The standard entitlement is 2 months (approximately 8.67 weeks) of paid leave after 10 years of continuous service. It continues to accrue at a rate of approximately 2 months per additional 10 years.

Can long service leave be paid out on termination?

In most states, yes — long service leave can be paid out when employment ends. The amount is based on the current ordinary rate of pay. Check the applicable state legislation for specific rules.

Does long service leave include leave loading?

Generally no. Long service leave is paid at the ordinary rate of pay. However, some enterprise agreements or awards may provide for leave loading on long service leave.

This article is general information, not legal advice.

Last updated: 26 July 2026.