Is super paid on long service leave?

Long service leave is a valuable entitlement for many Australian workers, providing extended time off after a long period of service with the same employer.

However, when it comes to superannuation, there's often confusion about whether super contributions apply to payments made during long service leave.

Is superannuation paid on long service leave? Here, we answer this question and provide insights into the considerations and exceptions you need to be aware of before taking long service leave.

What is long service leave?

Long service leave is a unique entitlement in Australia that rewards employees with paid leave after a long period of continuous service, typically 10 years or more, with the same employer.

The exact entitlements and eligibility requirements can vary based on state laws, industry awards and enterprise agreements, but it generally allows employees to take extended time off to recharge, travel or spend time with family.

Depending on the arrangement with your employer, long service leave can be taken as a continuous block of leave or, in some cases, taken in smaller amounts with the employer's agreement. Alternatively, if the leave is not taken, it may be paid out when the employee leaves the job.

Is super paid on long service leave? What you need to know about your entitlements

The short answer? Yes.

Superannuation contributions are usually paid on long service leave.

This is because long service leave payments are classified as ordinary time earnings (OTE), which are the basis for calculating superannuation contributions under the Superannuation Guarantee (SG) laws in Australia.

During your long service leave, your employer is required to continue making super contributions at the standard rate of 11.5% of your OTE - though this figure is expected to increase to 12% in 2025. This is the same rate that applies to your normal wages.

Whether you're taking the leave or having it paid out when you resign, retire or, in certain cases, are made redundant, super contributions are usually required.

Exceptions and things to consider

While super contributions on long service leave are the norm, there are some exceptions and factors to consider:

• Employment contracts and awards - The specific rules about super on long service leave may vary depending on your employment contract, industry awards or enterprise agreements. Always check the terms that apply to your situation to ensure there are no surprises down the road.
• Timing of payments - If your long service leave is taken as paid leave, contributions are typically made with each pay cycle. However, if it's paid out as a lump sum at the end of your employment, the super contribution should also reflect that timing.

Make the most of your super with Money's superannuation resources hub 

Now that we know super is payable on long service leave, why not keep the momentum going by reviewing pathways to keep your super balance growing?

The Money Superannuation Hub is filled with super-related content, from understanding the basics to exploring new investment opportunities.

We'll help you stay informed of super best practices so that you can unlock a positive financial future.

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