Question 1

When am I entitled to long service leave in NSW?

Accepted Answer

Under the NSW Long Service Leave Act 1955, the standard entitlement is 2 months (about 8.667 weeks) of paid LSL after 10 years of continuous service with the same employer. Each additional 5 years of service adds another month of entitlement. Pro-rata LSL becomes payable on termination once you have completed at least 5 years of continuous service, but only in the circumstances section 4(2)(a)(iii) of the Act specifies: the employer terminates for any reason other than the worker's serious and wilful misconduct; the worker resigns on account of illness, incapacity, or domestic or other pressing necessity; or the worker dies. A plain voluntary resignation before 10 years does not attract pro-rata. Continuous service includes paid leave but excludes most stretches of unpaid leave.

Question 2

How is LSL calculated for casual or part-time staff?

Accepted Answer

Casual and part-time employees in NSW accrue LSL on the same time-in-service basis as full-time staff — the threshold is still 10 years of continuous service for the full entitlement and 5 years for pro-rata on termination. The pay rate is calculated on the average ordinary weekly hours over the relevant period and paid at the rate of pay applicable when the leave is taken (or at the final rate of pay on termination). For example, an employee who averages 22.8 hours a week over 10 years receives the same 8.667 weeks of leave at a weekly rate scaled to 22.8 / 38 of a full-time wage.

Question 3

What pro-rata applies on termination after 5 years in NSW?

Accepted Answer

Once you have completed at least 5 years of continuous service, NSW provides a pro-rata payment on termination calculated as (years of service / 10) × 2 months. At 7 years of service that works out to (7/10) × 2 months = 1.4 months, or about 6.067 weeks. Who ended the employment matters here, and it is the detail most summaries get wrong. Section 4(2)(a)(iii) pays the pro-rata where the services are "terminated by the employer for any reason other than the worker's serious and wilful misconduct, or by the worker on account of illness, incapacity or domestic or other pressing necessity, or by reason of the death of the worker". So redundancy or dismissal (other than for serious and wilful misconduct) is paid, and a resignation is paid only where illness, incapacity or a domestic or other pressing necessity is the reason for it. A plain voluntary resignation at, say, 7 years attracts nothing. From 10 years of service the entitlement is payable however the employment ended.

Question 4

How is the ordinary pay rate for LSL worked out?

Accepted Answer

The LSL Act 1955 pays leave at the ordinary rate of pay — that is, the rate that would have applied if the employee had continued working through the leave period. For full-time staff that is the current weekly wage. For part-time and casual staff it is calculated on average ordinary hours over the relevant period and paid at the current ordinary rate. Overtime, shift loadings and bonuses are generally not included unless the modern award or enterprise agreement specifies otherwise. On termination the rate is the final rate of pay at the date of termination.

Question 5

What counts as continuous service for NSW LSL?

Accepted Answer

Continuous service generally means a single unbroken period of employment with the same employer. It includes paid annual leave, paid personal leave, public holidays and most paid breaks. It usually excludes unpaid leave longer than 14 days, unpaid parental leave beyond 12 months for some employers, and any period of unauthorised absence. A change of business ownership or a transfer between related entities can preserve continuous service in many cases — see the NSW Industrial Relations LSL guidance and the Fair Work Ombudsman pages for the transmission-of-business rules.

Question 6

Are NSW construction workers covered by a different scheme?

Accepted Answer

Yes — workers in the NSW building and construction industry are covered by the Building and Construction Industry Long Service Payments Scheme rather than the LSL Act 1955. The portable scheme allows service to follow the worker across multiple employers within the industry, with the Long Service Corporation (longservice.nsw.gov.au) holding the entitlement. Contract cleaners are covered by a separate portable scheme, and coal miners are covered by the federal Coal LSL Corporation. This calculator targets the general LSL Act only — workers in those industries should use the official portable scheme calculators provided by the relevant authority.

Item	Value
Full entitlement at 10 years	2 months (≈ 8.667 weeks)
Extra per additional 5 years	1 month (≈ 4.333 weeks)
Pro-rata on termination	From 5 years: (years ÷ 10) × 2 months — employer-initiated, or resignation on illness / incapacity / pressing necessity, or death
Part-time / casual rate	Full-time weekly wage × (average hours ÷ 38)

Long Service Leave Calculator NSW 2026

Statement

Quick answer

Taking LSL or being paid out under the NSW LSL Act 1955

How NSW accrues 2 months at 10 years, plus 1 month per 5 years

Continuous service, weekly pay and the part-time scaling inputs

NSW LSL payouts worked for full-time, part-time and resigning staff

LSL myths: casuals, the 5-year pro-rata line and portable schemes

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