How long service leave works in New South Wales
The Long Service Leave Act 1955 (NSW) covers full-time, part-time and casual workers, and any combination of the three across your service. The full entitlement is 2 months at 10 years, then 1 month for each further 5 years.
Between 5 and 10 years, a pro-rata payout applies only if your employer ends the employment (for anything short of serious and wilful misconduct), you resign because of illness, incapacity or a domestic or other pressing necessity, or you die. An ordinary "found a better job" resignation before 10 years pays nothing — the single most misunderstood rule in NSW.
Pay is the greater of your ordinary pay in the last full week and your 5-year average; if your hours moved around, NSW uses the greater of your 12-month and 5-year average weekly hours. Shift premiums, overtime and penalties are excluded; a casual loading is included for casuals.
What sets New South Wales apart
Two features set New South Wales apart. First, the pro-rata door opens earlier than in most states: at 5 years, where most wait until 7 (only the ACT has a comparable 5-year tier). Second, that early door only opens for the right exit reason. Between 5 and 10 years the Act looks at who ended the employment and why, so two people with identical service can walk away with very different final pays.
The NSW pay rule is also written to protect you if your pay dropped late in your career. You are paid the greater of your last full week's ordinary pay and your average over the previous 5 years, so a recent cut in hours or a move to a lower-paid role does not drag your payout down to the new figure.
Worked example, step by step
Made redundant after 6 years 6 months on $1,500 a week.
- Service: 6 years 6 months of continuous employment.
- Accrual rule in New South Wales: 8.6667 weeks per 10 years of service, counted proportionally.
- Leave accrued: 5.63 weeks.
- Payable on this exit? Yes. Redundancy is an employer-initiated ending, which is one of the NSW pro-rata triggers from 5 years. Had the same person resigned for a new job, the payout would be nil.
- Gross payout: 5.6334 weeks × $1,500 = $8,450 before tax.
Worked examples
| Scenario | Accrued | Payable? | Gross value |
|---|---|---|---|
| Resigned at 7 years on $1,800/week | 6.1 wks | No | — |
| Made redundant at 7 years on $1,800/week | 6.1 wks | Yes | $10,920 |
| Still employed at 12 years on $1,800/week | 10.4 wks | Can take leave | ≈ $18,720 if taken |
| Resigned for illness at 6 years on $1,500/week | 5.2 wks | Yes | $7,800 |
| Resigned at 10 years 6 months on $1,500/week | 9.1 wks | Yes | $13,650 |
Casuals, part-timers and changing hours
The NSW Act covers full-time, part-time and casual work, and it treats a working life that mixes all three as one period of service as long as continuity holds. A casual loading is included in the pay rate for casuals.
If your weekly hours moved around, NSW compares your average weekly hours over the last 12 months with your average over the last 5 years and uses whichever is higher. People who scaled back hours in the lead-up to leaving benefit most from that rule. The detailed casual-gap rules sit in section 4 of the Act and are not modelled by the calculator, so check them with NSW Industrial Relations if your casual work had long breaks.
Common mistakes in New South Wales
- Assuming 5 years always pays. It only pays for the listed exit reasons; an ordinary resignation between 5 and 10 years gets nothing.
- Using your final week alone. If your 5-year average weekly pay is higher, that is the figure you are owed.
- Counting overtime and shift premiums. They are excluded from NSW ordinary pay for long service leave.
How the payout is taxed
Long service leave paid out when you leave is taxed separately from your wages. On a genuine redundancy, leave accrued after 17 August 1993 is withheld at a flat 32%; on a resignation or ordinary dismissal it is taxed at your marginal rate. The final pay calculator applies the right treatment, and the redundancy tax guide explains the rules.
Frequently asked questions
How is long service leave calculated in NSW?
2 months (8.6667 weeks) of paid leave after 10 years of continuous service, then 1 month per additional 5 years. On termination the accrued amount is paid out at your ordinary pay — the calculator above applies the NSW rates for you.
Do I get long service leave if I resign at 7 years in NSW?
Only if the resignation is due to illness, incapacity, or domestic or other pressing necessity (or the employer ends the employment). An ordinary resignation between 5 and 10 years forfeits the pro-rata payment in NSW.
Does casual work count towards long service leave in NSW?
Yes — the NSW Act covers casuals, and mixed full-time/part-time/casual service counts as one period if continuity is maintained. Casual loading is included in the payout rate.
What rate is NSW long service leave paid at?
The greater of your ordinary weekly pay in the last full week before leave and your average over the previous 5 years — excluding overtime, shift premiums and penalties.
What counts as a "pressing necessity" resignation in NSW?
It means a genuine compulsion to leave, such as serious illness or unavoidable family circumstances, judged on the facts. A better job offer does not qualify. If you are relying on it, keep evidence and raise it with your employer in writing.
I have 12 years in NSW. Is it the full 2 months or more?
More. The first 10 years earn 8.6667 weeks and leave keeps accruing after that, with a further month for each additional 5 years. At 12 years the calculator shows roughly 10.4 weeks, and from 10 years any exit reason pays it out.
Verify with the official authority
New South Wales long service leave is governed by the Long Service Leave Act 1955 (NSW). The official authority is NSW Industrial Relations (131 628) — verify your specific situation there before acting, especially where continuity (breaks, business sales, parental leave) is in play.
Other states and tools
- Victoria LSL calculator
- Queensland LSL calculator
- Western Australia LSL calculator
- South Australia LSL calculator
- Tasmania LSL calculator
- Australian Capital Territory LSL calculator
- Northern Territory LSL calculator
- Pro-rata rules in every state
- Long service leave for casuals — continuity rules compared
- Final pay calculator — combine LSL with notice and leave
Sources
Figures on this page come from the following primary sources. The date is when we last checked the page against the source.
- Long service leave (NSW) (NSW Government), checked 7 August 2026.
- Long Service Leave Act 1955 (NSW) (NSW Legislation), checked 7 August 2026.
Rules last verified 2026-08-07. Estimates only. Independent guide — not a government service, and not financial or legal advice.