Transparency

Our methodology.

Every formula on this site is tied to primary Australian legislation. Here is exactly how each calculation works. The primary sources each figure is checked against are listed on sources, and the people who maintain them are on about.

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 130 days (26 weeks) of paid leave for a child born or adopted from 1 July 2026, the 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.