Northern Territory Long Service Leave Calculator

How NT long service leave is calculated

Under the Long Service Leave Act 1981 (NT), long service leave accrues at 1.3000 weeks for every completed year of continuous service with the same employer (or a business that was transferred to them). The first entitlement is 13 weeks after 10 years; after that, leave can be taken in further blocks every 5 years. Weeks are converted to hours at your ordinary weekly hours and paid at your ordinary weekly pay, without overtime.

Worked example: Alex started on 1 July 2016, works 38 hours a week and earns $1,500 a week. On 1 July 2024, after 8 years, Alex has accrued 10.40 weeks. Resigning for a new job then pays nothing; being made redundant pays 10.40 weeks ($15,600). After 12 years Alex has 15.60 weeks (592.8 hours), of which 13.00 weeks can be taken while still employed, and resigning pays $23,400.

When NT long service leave is paid out

What happens to 8 years of service (10.40 weeks accrued) depending on why the job ends. Before 7 years nothing is paid; after 10 years accrued leave is paid on any termination, except that only completed entitlement periods are paid after a serious misconduct dismissal.

What makes NT long service leave different

The NT credits 1.3 weeks for each completed year once you reach 10 years (13 weeks), and further leave becomes available after each extra 5 years (6.5 weeks a block). Between 7 and 10 years, pro rata is paid only on retirement age, termination by the employer other than for serious misconduct, or leaving because of illness, incapacity or a domestic or other pressing necessity, and to your estate on death. If you are dismissed for serious misconduct after 10 years, only the completed 10- and 5-year blocks are paid.

NT pay is worked out year by year: for each completed year, the current rate of pay × that year's normal weekly hours (or average hours, without overtime) × 1.3. So a year worked part-time counts at part-time hours even if you are full-time now. The Act's own example is $15 × 40 hours × 1.3 × 10 years = $7,800. Leave cannot be cashed out, can be split into at most 3 periods of 4 weeks or more, and public holidays inside it do not extend it. The Act does not apply where an award provides long service leave.

Tax on a NT long service leave payout

Long service leave taken while employed is taxed like normal pay. Unused leave paid when you leave is taxed under the ATO's Schedule 7 rules, which are the same in every state: leave accrued after 17 August 1993 is taxed at your marginal rates on a normal resignation or dismissal, and withheld at 32% after a genuine redundancy, invalidity or approved early retirement; leave accrued between 16 August 1978 and 17 August 1993 is withheld at 32%; and only 5% of leave accrued before 16 August 1978 is taxed.

On a $78,000 salary, Alex's $23,400 payout after 12 years adds about $7,488 of tax and Medicare at a 32% marginal rate, leaving $15,912. Unused long service leave paid on termination is not ordinary time earnings, so no super guarantee is paid on it.