Calculating Long Service Leave for Salary in Vic
How do you calculate, accrue and apply Long Service payments for employees on a salary in Victoria?
I have found the below examples on MYOB but I can not understand why there are two optoins and the difference between them is so vast that I dont know which one is correct to use in Victoria for an employee on a Salary. If I choose the wrong one than the impact on the employee and business is very big, so I am keen to get it right.
Example 1: Say your employees work a 38 hour week (7.6-hours x 5 days). After 10 years of continuous service they're entitled to 1 week of leave for every 60 weeks they’ve worked. So, after 10 years of continuous service, they're entitled to 329.3346 hours (8.6667 weeks) of long service leave.
In this case you would enter 32.9335 as the rate per year.
Example 2: Say your employees work a 38 hour week (7.6-hours x 5 days). After 10 years of continuous service they're entitled to 13 weeks of leave (494 hours). They also continue to accrue leave at the rate of 1.3 weeks per year.
In this case you would enter 49.4 as the rate per year.
In addition to the question above, I want to know that if the system is configured to apply the long service leave accrual yearly, when in a year is it applied? Is it on the anniversary date of employement each year or is it at some other time that may not relate to the anniversary date of employement? And how is long service leave calculated after the 10 year anniversary date for Victoria?
