NSW long service leave: entitlements, pro-rata rules & calculator 2026

NSW long service leave: quick summary

If you only read one section, make it this one.

Standard entitlement: 10 years = 2 months leave

Under the Long Service Leave Act 1955 (NSW), workers can be entitled to:

• 2 months (8.6667 weeks) of paid long service leave after 10 years' service, and
• a further 1 month (4.3333 weeks) at 15 years.

Pro-rata after 5 years (termination only)

NSW law provides a pro-rata entitlement after 5 years if employment ends and the reason is:

• resignation due to illness, incapacity, domestic or other pressing necessity,
• termination for reasons other than serious and wilful misconduct, or
• death of the employee.

Portable schemes: 7 years for some industries

Some workers can access long service leave earlier because they're in a portable LSL scheme:

• Community Services Industry portable scheme (from 1 July 2025): eligible workers can access long service leave after 7 years of recognised industry service (across one or more employers), with around 6.1 weeks after 7 years.

NSW LSL calculator tools

Use the NSW Government's interactive Long Service Leave Calculator tool for a sanity check (it's explicitly guidance only, not a guarantee).

• NSW LSL calculator tool
• For a broader Australia-wide view (all states + pro-rata + termination), see our guide: How to calculate long service leave

What is long service leave in NSW?

Long service leave is a state-based (and sometimes scheme-based) entitlement in Australia. For many workers, the entitlement comes from state/territory long service leave laws.

But it's not always that simple: some national system employees may still have long service leave entitlements from a federal pre-modern award (pre-1 Jan 2010) or earlier agreement arrangements, which can override state long service leave laws for that entitlement.

Which NSW long service leave rules apply to your workers?

Use this as your quick "coverage check". (This is a practical guide, not a legal determination.)

Official resources for checking LSL coverage

• Long Service Corporation (NSW portable schemes)
• NSW Government long service leave hub (FAQs + rules)
• Fair Work overview

NSW long service leave act 1955: entitlements explained

How many weeks LSL at 10, 15, and 20 years?

Under NSW law, long service leave provides:

• 2 months (8.6667 weeks) paid leave after 10 years' service
• A further entitlement after that (commonly described as 1 month (4.3333 weeks) at 15 years)

The 15-year accrual rule (completed years only)

Once a worker completes 15 years, only completed years count toward accrual. Example given by NSW Government: a worker with 16 years and 3 months counts as 16 years for accrual purposes.

NSW long service leave entitlement table

This table is a rule-of-thumb based on NSW Government entitlement figures. Always validate with the NSW calculator/tool for real-life absences and edge cases.

Pro-rata long service leave NSW: when does it apply?

Pro-rata entitlements work similarly to pro-rata annual leave calculations, but with different qualifying thresholds and termination requirements.

Eligible termination reasons for pro-rata LSL

NSW provides for pro-rata long service leave after 5 years if employment ends and one of the relevant situations applies. When calculating final pay, you'll need to include any pro-rata LSL owed. The eligible termination reasons (as summarised in NSW Government guidance) are:

• the worker resigns due to illness, incapacity, domestic or other pressing necessity, or
• the worker is terminated for any reason other than serious and wilful misconduct, or
• the worker dies.

Resignation due to "pressing necessity": evidence required

NSW guidance highlights that, when a worker claims pro-rata LSL due to "pressing necessity" type resignation, they may need to demonstrate:

• it was the genuine motivating reason, and
• a reasonable person in their position would feel compelled to resign.

NSW guidance also states the onus is on the worker, and the employer can request evidence.

Pro-rata LSL calculation example (7 years service)

Continuous service for NSW long service leave

Long service leave is built on continuous service. Unlike annual leave which accrues from day one, LSL requires years of unbroken service.

What breaks continuous service? (Resignation resets the clock)

NSW Government guidance states a resignation breaks continuity. If the worker is later re-engaged, the long service leave accrual restarts from re-engagement, and previous service doesn't count for LSL purposes.

Transfer of business: LSL service carries over

If a business is sold and continues as the same business and the worker continues employment in that business:

• service with previous owner(s) counts as service with the new owner, and
• records of long service leave taken/accrued must be transferred to the new owner.

Absences: some don't break service, but may not accrue

NSW guidance draws a distinction between:

• absences that don't break service and still count, and
• absences that don't break service but don't count when calculating length of service / averages (for example, certain unpaid absences).

Casual employees and NSW long service leave entitlements

Yes, casual employees can be eligible for NSW long service leave—but the "casual reality" is where employers often get it wrong.

How zero-hour weeks affect casual LSL accrual

NSW guidance explains that casuals can have weeks with zero hours, and those weeks can fall into different categories that affect:

• whether the week counts as service, and
• whether the week counts in calculating average weekly hours and ordinary remuneration.

For example, NSW guidance shows that:

• a week where the worker wasn't available, or wasn't rostered even though they were willing/able, can count as service and be included in average calculations;
• weeks of unpaid leave under the terms of employment (like a shutdown), or whole weeks missed due to illness/injury, may count as service but not be included in average calculations;
• parental leave weeks may not count as service (but also don't necessarily break service).

Casual loading included in NSW long service leave pay

NSW guidance also states that long service leave is paid at the worker's ordinary pay rate, and for casuals, ordinary pay includes the casual loading.

How to take long service leave in NSW: rules and options

Can NSW long service leave be split into multiple periods?

NSW guidance says long service leave should usually be taken as one continuous period, but it can be taken in 2 or more separate periods (minimum 1 day) if employer and worker agree. Both parties should keep a copy of the agreement.

LSL entitlement at 10 years vs 15 years in NSW

NSW guidance indicates:

• between 10 and 15 years, a worker may take paid leave of no more than the 2 months (8.6667 weeks) "10-year entitlement"
• at 15 years, there is an entitlement to a further 1 month (4.3333 weeks) paid leave
• if employment ends between 10 and 15 years, a proportionate amount is paid based on "3 months for 15 years' service".

Taking long service leave in advance in NSW

Yes—NSW guidance says leave can be taken in advance by agreement. It also notes that if employment ends before the worker reaches 10 years' service, money paid for leave taken in advance may be recoverable by the employer.

Can employers direct staff to take long service leave in NSW?

NSW guidance indicates employers must allow leave "as soon as possible" considering the business's needs, and gives guidance about notice (commonly one month, unless the worker agrees to less). It also describes that if agreement can't be reached, employers may be able to lawfully direct leave with sufficient notice (and suggests legal advice).

How to calculate and pay NSW long service leave

This is where payroll mistakes get expensive—especially for variable hours and casuals.

NSW guidance says the basic principle is that a worker should be paid ordinary remuneration and not be penalised by a recent dip in earnings or hours.

LSL pay calculation for fixed-hours employees

NSW guidance says payment is based on whichever is greater:

• the worker's weekly ordinary pay in the last full pay week before the leave is taken (or on termination), or
• the average weekly ordinary pay over the previous 5 years (generally excluding weeks of unpaid absences from the 5-year average).

It also notes that weeks of unpaid absences (like unpaid parental leave) should not be included in the 5-year average calculation.

LSL pay calculation for variable-hours and casual workers

For workers without a fixed normal weekly number of hours, NSW guidance sets out:

• how to determine a "normal weekly number of hours" (using the greater of average weekly hours over the preceding 12 months or 5 years), and
• how to determine ordinary remuneration (again, using the greater of a "prescribed date" rate vs a 5-year average approach).

What counts as ordinary remuneration for NSW LSL?

NSW guidance indicates:

• shift work payments, penalties and overtime are generally not included,
• skills-based allowances can be included, and
• for casuals, the ordinary pay rate includes casual loading.

NSW long service leave payout formula

This is a simplified estimator for the common NSW Act scenario (not portable schemes). It will not handle all absence rules.

Portable long service leave schemes in NSW

Portable schemes matter because they change the "same employer for 10 years" assumption.

The Long Service Corporation administers NSW portable long service leave schemes.

Community Services industry portable scheme (starts 1 July 2025)

This is the big recent change people are seeing in "People also ask".

NSW Government / Long Service Corporation guidance states:

• The scheme starts 1 July 2025.
• Workers become eligible after 7 years recognised service across one or more employers in the industry, and can claim up to 6 weeks (with payment based on ordinary wages, excluding overtime).
• Long Service Corporation information indicates this equates to ~6.1 weeks after 7 years (2555 days) (or 6 years with a foundation worker bonus), plus another 0.8667 weeks after each additional year (365 days).
• Employers with 1+ workers in the Community Services Industry in NSW must register from 1 July 2025 and begin recording service; first service returns and levy payments (for the first three quarters) are due from April 2026.
• Workers can't "double dip" for the same period: if they qualify for "traditional" long service leave from one employer (10 years continuous employment), they can't also claim from the Long Service Corporation for the same period.

NSW building and construction portable long service leave

Long Service Corporation guidance indicates workers can generally claim after 10 years service (and then again after further periods), with additional eligibility scenarios (like leaving the industry permanently after 5 years).

NSW contract cleaning portable long service leave

Long Service Corporation guidance indicates workers can generally claim after 10 years of recognised service with one or more employers, and interstate service may be counted.

NSW long service leave calculators and tools

Note: NSW Industrial Relations includes a disclaimer that the calculator is guidance only and users should seek their own advice for decisions.

Step-by-step compliance plan for NSW employers

Here's a process you can actually operationalise.

Step 1: Confirm which LSL rules apply

NSW Act (default) vs portable scheme vs pre-modern award/EA entitlements.

Step 2: Keep the right records (and keep them long enough)

NSW Industrial Relations guidance states:

• employers are required to make and keep employment records for 7 years, and
• long service leave records must be kept for at least 6 years after employment ends, and transferred to a successor employer when applicable.

Practical checklist:

Step 3: Track continuous service and absences properly

Record breaks and unpaid absences clearly, because they can affect averages and accrual.

Step 4: When an employee requests LSL, document the agreement

NSW guidance supports splitting leave by agreement and recommends both parties keep copies.

Step 5: Calculate pay correctly (don't "just use base rate")

• For fixed hours: compare last full pay week vs 5-year average.
• For fluctuating hours: use the "greater of" average hours and remuneration rules.
• For casuals: casual loading is included in ordinary pay rate.

Step 6: On termination, re-check pro-rata eligibility (don't assume)

Pro-rata after 5 years depends on the reason employment ends (including serious and wilful misconduct exclusions).

Step 7: Use official tools to sanity-check

Use the NSW Government calculator tool as a cross-check (and keep a copy of the inputs/outputs for your file).

Common mistakes (and how to avoid them)

How RosterElf helps with long service leave compliance

NSW long service leave compliance comes down to correct rules + good records. Most businesses struggle with the inputs (hours, pay history, leave records) and the process (approvals, audit trail, payroll handover).

RosterElf can help by reducing manual work and improving data quality that feeds payroll, including:

• exporting approved timesheets to payroll systems like Xero or MYOB in one click, reducing re-keying and errors;
• maintaining a roster → timesheet → payroll workflow with full payroll reconciliation support;
• creating a cleaner audit trail for "what was rostered vs what was worked".

NSW long service leave summary: key points for employers

NSW long service leave is manageable when you treat it as an ongoing compliance task rather than something to worry about later.

NSW long service leave official sources and resources

Other state guides

• Victoria long service leave guide
• QLD long service leave guide
• View all employment law guides