How a long service leave payment is calculated
Information about cleaning work on Commonwealth land
Work on Commonwealth land is not eligible for service credits under the Contract Cleaning Industry Long Service Leave (CCI LSL) scheme. From 1 January 2023:
- employers must not record cleaning work performed on Commonwealth places on future quarterly service returns
- levies are not payable on wages paid for cleaning work performed on Commonwealth places and employers will need to ensure that they do not add this work to quarterly returns.
The following formula is used to calculate the amount the Corporation pays for long service leave to a worker who is an employee:
Days service x Average ordinary weekly wage x 0.8667
365
To work out the average ordinary weekly wage for a long service leave payment, we will look at the amounts reported by the employer and calculate the following.
(a) The worker’s average ordinary weekly wage over the last 6 months
(b) The worker’s average ordinary weekly wage over the last 12 months
(c) The worker’s average ordinary weekly wage over the last 5 years
(d) The worker’s average ordinary weekly wage over the last 10 years
Of those four figures, the highest amount will be used to calculate the long service leave payment.
For example, Henry has 10 years service in the scheme. The periods in paragraphs (a), (b), (c) and (d) apply to Henry.
Henry’s average ordinary weekly wage:
(a) for the 6 months before he starts his long service leave is $483
(b) for the 12 months is $527 per week
(c) for the 5 years is $375 per week
(d) for the 10 years is $309 per week
Henry’s long service leave payment from the Corporation will be calculated on a rate of $527 per week, because that is his highest amount from (a), (b), (c) and (d).
