New South Wales average hours for long service leave

The New South Wales rule

Under the Long Service Leave Act 1955 (NSW), normal weekly hours are the higher of the average over the last 12 months and the last 5 years (s 3(1)(a)-(b), s 3(2A); NSW IR Guide Step 11A).

Calc 1: fixed hourly rate at the prescribed date x average weekly hours over the 12-month adjusted period. Calc 2: average weekly remuneration over the 5-year adjusted period. Pay the higher.

Worked example: hours cut back in New South Wales

A long-serving employee worked 35 hours a week for three years, then reduced their hours, with 4 weeks of unpaid leave along the way. They are paid $40 an hour.

Under the New South Wales rule:

1. The ruleNew South Wales uses the higher of the average over the last 12 months and the last 5 years (s 3(1)(a)-(b), s 3(2A); NSW IR Guide Step 11A).
2. Last 12 months1,300.00 hours ÷ 52.00 weeks = 25.00 hours a week.
3. Last 5 years8,320.00 hours ÷ 256.00 weeks = 32.50 hours a week.
4. Normal weekly hoursThe higher figure is 32.50 hours (last 5 years).
5. Weekly pay for leave32.50 hours × $40.00 an hour = $1,300.00 a week.

So leave is paid at 32.50 hours a week, or $1,300.00 a week.

Each year is counted as 52 weeks, less any unpaid leave weeks you entered. The Acts count calendar days and exclude some unpaid absences, so a payroll figure can differ slightly.

For the 5-year figure, the NSW Act uses the average weekly pay you actually received, not your hours at today's rate (s 3). If your rate has gone up over those years, the Act's 5-year figure is lower than this.

See the New South Wales long service leave calculator to work out the full entitlement with these hours.

Common questions

Official sources

• Long Service Leave Act 1955 No 38
• NSW Industrial Relations

Rules last reviewed 3 November 2026. Every figure comes from the Acts, the regulators, the ATO and the AASB; see sources and method.