Victoria Long Service Leave.

How long service leave works in Victoria

Victoria accrues long service leave continuously rather than in steps, under the Long Service Leave Act 2018. You earn 1 week for every 60 weeks of continuous employment, which works out to 6.07 weeks once you complete 7 years. There is no waiting for a 10-year cliff.

The full entitlement is 1 week for every 60 weeks of continuous employment, which is 6.07 weeks at 7 years. Long service leave sits outside the National Employment Standards, so this is set by Victoria law rather than federal law, and the figures differ from every other state. Compare all eight in our guide to long service leave after 10 years.

Leaving before 7 years: pro-rata in VIC

Pro-rata long service leave becomes possible at 7 years of continuous service in Victoria. That threshold is necessary, but in this state it is also sufficient.

This is the single most misunderstood part of long service leave, and it is where people lose the most money. The threshold is what gets quoted in conversation; the condition is what decides whether anything is actually paid. Our pro-rata long service leave guide sets out the rule for all eight states and territories side by side.

What counts as continuous service

The 2018 Act is deliberately broad. Any form of paid or unpaid parental leave counts as continuous service, and up to 52 weeks of unpaid parental leave counts as service for accrual. Casual and seasonal employees can accrue where employment is continuous, and absences do not break service unless the employment itself ends.

How the payment is calculated

Victoria pays at the greater of your ordinary rate in the 12 months before the leave, the average over the last 5 years, or your rate over the whole period of employment. Where hours have changed, the higher averaging period usually applies, which protects workers who have recently dropped to part-time.

How the payout is taxed

The entitlement is set by Victoria law, but the tax on it is federal and works differently to almost every other payment. The ATO splits a long service leave payout by when the service was performed, not just why you left, and taxes each slice under the rules that applied at the time. Service from 18 August 1993 is taxed at your marginal rate on an ordinary resignation, or capped at 30% plus the Medicare levy on a genuine redundancy. Earlier service is treated more favourably again.

This is why a flat 32% estimate is usually wrong: that figure is a ceiling plus the Medicare levy, not a fixed rate, so anyone below the 30% bracket pays less. Work out the split on your own payout with the long service leave tax calculator.

A VIC worked example

Does other leave keep accruing while you are on it?

Yes. Long service leave is paid leave, and paid leave counts as service in every Australian jurisdiction. That means annual leave and personal leave continue to accrue for the whole time you are away, and the period also counts towards your next long service leave milestone. A worker taking 6.07 weeks in VIC comes back with roughly a week of extra annual leave already banked.

A public holiday falling inside a period of long service leave is treated the same way it is inside annual leave: you are not taken to be on leave that day, so it does not come out of your balance. The VIC dates are listed on VIC public holidays. If you fall ill during long service leave, most states let you convert the affected days to personal leave with evidence, which preserves the long service balance.

Long service leave in your final pay

When employment ends, any long service leave you are entitled to is paid as part of your final pay rather than separately. It sits alongside unused annual leave, outstanding wages, and notice or redundancy where they apply. Work the whole amount out on the final pay calculator, or see termination pay for how the components fit together.

Two things change the number. Superannuation is generally not payable on a long service leave payout, because the ATO does not treat it as ordinary time earnings, and the withholding rate depends on why the employment ended. A payout tied to a genuine redundancy is taxed concessionally, while an ordinary resignation is taxed at your marginal rate. Neither changes the gross figure the calculator produces above; both change what lands in your account.

The VIC catch worth knowing

Victoria is the most straightforward jurisdiction in the country: 7 years, no conditions, and continuous accrual. If you have completed 7 years in Victoria and the job ends for any reason at all, you are owed the balance. That is not true almost anywhere else.

Construction workers: your service may be portable

If you work in building and construction, the continuous-service rule above may not be the one that applies to you. Victoria runs a portable long service leave scheme where service accrues with the industry rather than a single employer, so moving between builders does not reset the clock. See portable long service leave and our VIC portable scheme guide. You cannot be paid twice for the same period of service.

Where to check your own entitlement

Victoria long service leave is administered by Wage Inspectorate Victoria, which is the authority of record for disputes and for any figure you intend to rely on. The calculator above estimates your balance under the Long Service Leave Act 2018 (VIC); where a number decides whether you resign or wait, confirm it with the authority or the Fair Work Ombudsman first.