Long Service Leave Yearly
Hello, in Victoria the Long Service Leave is calculated at .866 weeks every 60 weeks worked.
What is the calcution to work on for entering into MYOB Catergory for long service leave.
We have 2 types of employees:
1 by wages (hourly) = calculation for wages = 1.333 hours per gross worked
1 by salary = I am unsure on how to work on this catergory; hopefully someone will help my brain out as it is currently set at 34.667 hours per year which doesn't seem right to me. My calculations are 45.066 per year.
Thank you in advance
Cheers JayneMac
Hi jaynemac
Thank you for your post.
For the the employer paid hourly choose Equals [x] Percent of [Gross Wages]. Click Exempt to select any categories that shouldn’t be included in the calculation, such as overtime. Then click OK. Then use this formula to calculate the correct percentage:
(Total hours entitled / Total number of working hours over eligibility period) x 100 = %Example 1: Say your employee worked 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 8.6667 weeks of long service leave. To calculate the leave accrual percentage: Leave hours entitled: 38 hours x 8.6667 weeks = 329.3346 Hours worked over 10 years: 38 hours x 52 weeks x 10 years = 19760 (329.3346 ÷ 19760) x 100 = 1.6667%. Employees who remain linked to this entitlement will continue to accrue leave at the rate of 32.9340 hours 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. To calculate the leave accrual percentage: Leave hours entitled: 38 hours x 13 weeks = 494 hours
Hours worked over 10 years: 38 hours x 52 weeks x 10 years = 19760 (494 ÷ 19760) x 100 = 2.5%. Employees who remain linked to this entitlement will continue to accrue leave at the rate of 49.4 hours per year.For the employee paid a salary enter the number of hours the employee accrues in long service leave each year. These examples might help you calculate the correct rate for your business:
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.
Please let us know how you get on and if you require further assistance.
