Long service leave is an Australian entitlement that rewards employees for years of continuous service, and calculating it correctly requires understanding the different accrual rates, pro rata provisions, and payout rules that vary by state and territory. Unlike annual leave, long service leave accrues over many years and is governed by state-specific legislation — meaning the rules change depending on where your employee works.

This guide covers the calculation for every Australian state and territory, including the recent changes in Victoria and the different thresholds across jurisdictions.

Key takeaways

  • Long service leave accrues at 2 months (8.67 weeks) per 10 years of continuous service in most states.
  • Accrual is pro-rated after 7 years in some states (e.g., Victoria), meaning employees can access a portion of long service leave before the full 10-year milestone.
  • Long service leave is paid at the employee’s current rate of pay, not the rate at the time of accrual.
  • On termination, employees with 7+ years of service may be entitled to a pro-rata payout depending on the state and reason for termination.
  • The applicable state legislation depends on the employee’s ordinary place of work, not the employer’s head office.

State-by-state overview

Victoria

Under the Long Service Leave Act 2018 (Vic):

  • Accrual: 2 months per 10 years of continuous employment
  • Pro rata: After 7 years, employees can access a pro-rata portion
  • Pro-rata accrual rate: 1/10th of the full entitlement per year after 7 years
  • Payout on termination: Pro-rata after 7 years, regardless of reason for termination (including resignation)

Victoria’s 7-year pro rata rule is the most generous in Australia. An employee with 8 years’ service who resigns is entitled to a pro-rata payout of approximately 1.6 months’ leave.

New South Wales

Under the Long Service Leave Act 1955 (NSW):

  • Accrual: 2 months per 10 years of continuous employment
  • Pro rata: No statutory pro rata before 10 years (unless the employee is eligible for a pro-rata payment on termination)
  • Payout on termination: After 10 years, or pro-rata after 5 years if terminated due to illness, injury, redundancy, or death

Queensland

Under the Long Service Leave Act 1953 (Qld):

  • Accrual: 2 months per 10 years of continuous employment
  • Pro rata: After 7 years, employees can take a portion of long service leave
  • Payout on termination: Pro-rata after 7 years for certain reasons (ill health, domestic emergency, retrenchment, or death)

South Australia

Under the Long Service Leave Act 1987 (SA):

  • Accrual: 2 months per 10 years of continuous employment
  • Pro rata: After 7 years, employees can take or be paid pro-rata long service leave on termination for certain reasons
  • Payout on termination: Pro-rata after 10 years, or after 7 years if terminated due to illness, injury, redundancy, or death

Western Australia

Under the Long Service Leave Act 1958 (WA):

  • Accrual: 2 months per 10 years of continuous employment
  • Pro rata: After 7 years, employees can be paid pro-rata long service leave on termination for certain reasons
  • Payout on termination: Pro-rata after 7 years if terminated due to ill health, domestic emergency, or redundancy

Tasmania

Under the Long Service Leave Act 1976 (Tas):

  • Accrual: 2 months per 10 years of continuous employment
  • Pro rata: After 7 years, employees can access pro-rata long service leave
  • Payout on termination: Pro-rata after 7 years for certain reasons

Northern Territory

Under the Long Service Leave Act 1981 (NT):

  • Accrual: 2 months per 10 years of continuous employment
  • Pro rata: After 7 years, employees can access pro-rata long service leave
  • Payout on termination: Pro-rata after 7 years for certain reasons

Australian Capital Territory

Under the Long Service Leave Act 1976 (ACT):

  • Accrual: 2 months per 10 years of continuous employment
  • Pro rata: After 7 years, employees can access pro-rata long service leave
  • Payout on termination: Pro-rata after 7 years for certain reasons

The calculation

Step 1: Determine years of continuous service

Count from the date of commencement, including periods of paid leave (annual leave, personal/carer’s leave, long service leave) but excluding unpaid leave of more than a certain period (varies by state — typically 52 weeks or more breaks continuous service).

Step 2: Calculate accrued long service leave

Accrued long service leave = years of service × (2 months ÷ 10) = years × 0.2 months

Example: 12 years of service × 0.2 months = 2.4 months (approximately 10.4 weeks or 52 working days).

Step 3: Calculate pro rata entitlement (where applicable)

For states with pro rata provisions (7-year threshold):

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

Example (Victoria): Employee with 8 years’ service resigns. Pro rata entitlement = (8 ÷ 10) × 2 months = 1.6 months (approximately 7 weeks or 35 working days).

Step 4: Calculate payout value

Long service leave payout = weeks of accrued leave × weekly pay

Weekly pay is the employee’s current ordinary rate of pay (including regular allowances, shift loadings, and overtime if specified in the applicable instrument).

Putting it into practice

Five checks to ensure your long service leave calculations are correct:

  1. Identify the applicable state legislation based on the employee’s ordinary place of work.
  2. Determine continuous service from the date of commencement, including qualifying periods of paid leave.
  3. Apply the correct accrual rate (2 months per 10 years in all states).
  4. Check whether pro rata provisions apply (7-year threshold in Victoria and most states).
  5. Calculate the payout value using the current rate of pay, not the rate at accrual.
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Frequently asked questions

How much long service leave do I accrue per year?

In all Australian states and territories, long service leave accrues at 2 months per 10 years of continuous service. This equates to approximately 8.67 weeks of leave after 10 years, or 0.867 weeks per year.

Can I take long service leave before 10 years?

In most states, you can access a pro-rata portion after 7 years. Victoria is the most generous, allowing pro-rata access from 7 years regardless of the reason for leaving. Other states restrict pro-rata access to specific circumstances (illness, redundancy, death).

What happens to long service leave when I change jobs?

Long service leave is tied to continuous service with one employer. If you change jobs, your long service leave balance resets with the new employer. There are limited exceptions for business transfers and some industry-specific portable long service leave schemes.

Is long service leave paid at my current salary?

Yes. Long service leave is paid at the employee’s current ordinary rate of pay at the time the leave is taken or paid out. This means that if you have received pay rises since the leave accrued, the payout reflects your current salary.

Do I get long service leave on termination?

It depends on the state and the reason for termination. In Victoria, pro-rata long service leave is payable on termination after 7 years, regardless of the reason. In other states, pro-rata payout may only apply for specific reasons (illness, redundancy, etc.) before the full 10-year milestone.

This article is general information, not legal advice. Consult qualified employment counsel for jurisdiction-specific guidance.