Our methodology.
Every formula on this site is tied to primary Australian legislation. Here is exactly how each calculation works.
Annual Leave
Source: Fair Work Act 2009 (Cth), s.87. Full-time employees accrue 4 weeks (152 hours) of paid annual leave per year of service. Part-time employees accrue on a pro-rata basis calculated from their contracted hours relative to a standard 38-hour week. The accrual rate is approximately 2.923 hours per week worked.
Long Service Leave
Long service leave is governed by each state and territory's own legislation rather than a single federal act. Trigger years vary: most states require 7 years of continuous service before full entitlement, while some jurisdictions set the threshold at 10 years. Pro-rata payouts on termination apply in most states after a shorter qualifying period. We apply the correct state act based on the employee's selected state.
Redundancy Pay
Source: Fair Work Act 2009 (Cth), s.119. The National Employment Standards specify a sliding scale of redundancy pay based on years of continuous service. The scale runs from 4 weeks at 1 year of service up to a maximum of 16 weeks at 10 or more years. Small business employees (fewer than 15 staff) are exempt from the NES redundancy provisions unless a modern award or enterprise agreement applies.
Leave Loading
Leave loading is an additional payment on top of base annual leave pay. The NES does not mandate leave loading; it applies only where a modern award or enterprise agreement requires it. The standard rate is 17.5% of base weekly pay, though some awards specify a higher rate (for example, 25%). Our calculator lets you select the applicable rate or disable loading entirely for award-free employees.
Parental Leave
The Government-funded Paid Parental Leave (PPL) scheme provides up to 120 days (approximately 24 weeks) of paid leave as of the 2024-25 financial year. Eligibility requires meeting a work test and an income test. Employer-funded parental leave entitlements, where they exist, are set out in individual awards or enterprise agreements. Our calculator covers the PPL scheme entitlement; employer top-up amounts vary and should be confirmed against the relevant award.
How we keep calculations current
- All constants and formulas reference specific sections of primary legislation.
- Reviewed each financial year against ATO indexation and Fair Work Commission determinations.
- Tax-free ETP caps are updated annually when the ATO publishes new figures.
- Content reviewed by Sarah Reid, CAHRI, a certified Australian HR practitioner.