Long service leave

As long-service leave (LSL) is paid leave, so benefits are not affected and contributions remain payable.

Long service leave can be taken at double pay, single pay or half pay. Whichever way it is taken it is treated for superannuation purposes as if it had been taken at the single pay rate. Therefore, if you take long service leave at half pay, contributions remain payable at the full-time rate for the whole leave period.

An instance where LSL may affect entitlements is if you are a shift worker and your salary for superannuation purposes includes a loading which is determined by the number of shifts you worked in the 12 months prior to the salary reporting date. Whether a loading is applied to your base salary for superannuation purposes, of 0%, 10%, 15% or 20%,  depends on the number of shifts you have worked in the 12 month period for which you have received a shift penalty.

If you take LSL in this period, you will not be working shift work and therefore will not be receiving shift penalties. This will potentially reduce or eliminate the loading applied to your salary for superannuation purposes. A reduction in the salaries reported at the previous two annual review days and/or at exit from the scheme will result in a lower benefit being paid. If you are entitled to any Additional Employer Contributions these will also be made based on your reduced salary.

For further information, see SSS Fact Sheet 1: Salary for superannuation purposes.