• Personal
  • Employers
  • Advisers
  • Calculators & forms
  • News Hub
  • Contact us
QSuper QSuper
  • Products
    • Why QSuper
    • Investment options
    • Fees
    • Financial advice
    • Compare us
    • Insurance
    • Account types
      • Accumulation account
      • Transition to Retirement Income account
      • Retirement Income account
      • Lifetime Pension
      Why QSuper?

      #1 fund for weathering market ups and downs3

      More reasons to join
  • Super
    • Grow your super
      • Salary sacrifice
      • Super co-contribution
      • Voluntary contributions
      • Spouse contributions
      • Contribution caps
      • Tax deductions
    • Consolidate your super
    • Find your lost super
    • Changing jobs
    • Nominate beneficiaries
    • Early access
    • Seminars and education
  • Retirement
    • Why retire with QSuper
      • Transition to Retirement Income account
      • Retirement Income account
      • Lifetime Pension
    • Retirement planning
      • Make your super last in retirement
      • The Age Pension and Super
    • How much super do you need to retire
    • Access your super
      • When can you access your super
      • Withdraw your super
    • Seminars and education
      Award winning

      SuperRatings' Pension of the Year three years in a row4

      Find out more
  • Investments
    • Investment options
      • Lifetime
      • Moderate
      • Balanced
      • Socially Responsible
      • Aggressive
      • Cash
      • Diversified Bonds
      • Australian Shares
      • International Shares
      • Self Invest
    • Performance
      • Overview
      • Graphs
      • Unit prices
    • Compare options
    • Change your investment options
  • Insurance
    • Insurance options
      • Income protection
      • Total & permanent disability cover
      • Death cover
    • How much insurance cover do you need
    • Change or cancel your insurance
    • Make an insurance claim
  • Advice
  • Calculators & forms
  • News Hub
  • Contact us
Join
  • Call
Join Log In - Open navigation
Member Online

Forgot username?
Forgot password?
Register

Navigation

QSuper
  • Personal
  • Employers
  • Advisers
  • Search
  • Join Log In
  • Products Expand
    • Why QSuper
    • Investment options
    • Insurance
    • Fees
    • Financial advice
    • Account types Expand
      • Accumulation account
      • Transition to Retirement Income account
      • Retirement Income account
      • Lifetime Pension
    • Compare us
  • Super Expand
    • Consolidate your super
    • Grow your super Expand
      • Salary sacrifice
      • Super co-contribution
      • Voluntary contributions
      • Spouse contributions
      • Contribution caps
      • Tax deductions
    • Find your lost super
    • Changing jobs
    • Nominate beneficiaries
    • Early access
    • Seminars and education
  • Retirement Expand
    • Why retire with QSuper Expand
      • Transition to Retirement Income account
      • Retirement Income account
      • Lifetime Pension
    • How much super do you need to retire
    • Retirement planning Expand
      • Make your super last in retirement
      • The Age Pension and Super
    • Access your super Expand
      • When can you access your super
      • Withdraw your super
    • Seminars and education
  • Investments Expand
    • Performance Expand
      • Overview
      • Graphs
      • Unit prices
    • Investment options Expand
      • Lifetime
      • Moderate
      • Balanced
      • Socially Responsible
      • Aggressive
      • Cash
      • Diversified Bonds
      • Australian Shares
      • International Shares
      • Self Invest
    • Compare options
    • Change your investment options
  • Insurance Expand
    • Insurance options Expand
      • Income protection
      • Total & permanent disability cover
      • Death cover
    • How much insurance cover do you need
    • Change or cancel your insurance
    • Make an insurance claim
  • Advice
  • Your account Expand
    • Online Advice
    • Super Expand
      • Consolidate
      • Investments
      • Add to super
      • Insurance
      • Account history & statements
    • Profile Expand
      • Security and Authorities
      • Employer
      • Employer
      • Personal details
      • Beneficiaries
    • Self Invest
  • Calculators & forms Expand
    • Superannuation & Retirement Calculators Expand
      • Super and retirement planning calculators
      • Retirement planning
      • Insurance
      • Maximise your super
      • Savings
      • Investing
    • Forms Expand
      • All
      • Claims and withdrawals
      • Deposits and contributions
      • Insurance
      • Investments
      • Transfers
      • Other forms
    • Publications Expand
      • PDS
      • Guides
      • Annual reports
      • Factsheets
      • Other publications
  • News Hub Expand
    • Category Expand
      • News
      • Superannuation
      • Retirement
      • Finances
      • Investments
      • Career
      • Wellbeing
      • Employer
  • Contact us Expand
    • Email QSuper
    • Language assistance
    • Browser support
    • Formal enquiries and complaints
    • FAQs – Frequently Asked Questions
    • QSuper Member Centres

News Hub

All Articles News Superannuation Retirement Finances Investments Career Wellbeing
News Hub Finances

Is super paid on long-service leave?

Finance News
25 January 2021 4 min read

If you’ve been with your employer for an extended period of time, you might wonder if they’re required to pay superannuation on long-service leave. The short answer is, yes, but there is an exception. Understanding how super applies to long-service payments is an important step to managing your super effectively.

OTE

It is important to note, however, that some employers, including the Queensland Government, have different contribution arrangements and, in those cases, employer obligations may differ from those outlined here.

Long-service leave is a paid entitlement rewarding employees who have stayed with one employer for a significant period of time – a minimum of seven or 10 years, depending on where in Australia you live and work or as agreed in your employment contract.

States and territories have different entitlements1, with significant variations in terms of the length of uninterrupted service required to be eligible for long service, and the amount of leave that may be granted.

There are also some circumstances, and certain jobs, in which you can still be eligible for long-service leave even if your employment is interrupted. If you are unsure of your entitlements, check with your employer or state government for clarification.2

When is super not paid on long-service leave?

Under the terms of Australia’s Superannuation Guarantee, employers currently must pay a minimum 9.5% of an eligible employee’s ordinary time earnings (OTE) into their nominated superannuation account. They can choose to pay more if they wish.

OTE means the money you earn during normal work hours. That includes annual leave and leave loading, shift allowances, back pay, commissions, bonuses, and long-service leave.3

However, many Australians retire, or move on from a role, with an accumulation of long-service leave, which then needs to be cashed out. This is where the exception applies: unused long-service leave cashed out upon termination of employment is not considered to be part of OTE, and employers are not required to pay super on that amount.

An opportunity to grow your super

If you do want to take your long service leave as a lump sum but would also like to use some of that money to boost your superannuation account balance, there are a number of ways to achieve this.

Voluntary contributions: You could contribute some of the money to your super in the form of a voluntary contribution, which can be made at any time during the financial year. In doing so, it is important to be aware that there are some limits to how much you can contribute to your super fund each year (contribution caps). If you go above these limits, you may pay extra tax.

Top up your spouse’s super: You could also use it to top up your spouse’s super.

Other strategies for growing your super can be found here.

communication

Support for your super and retirement

Professional financial advice on your QSuper account at no additional cost.*

Find out more


* You can find out more about financial advice options at qsuper.qld.gov.au/advice or by calling us on 1300 360 750. QInvest Limited (ABN 35 063 511 580, AFSL 238274) is a separate legal entity responsible for the financial services it provides. Eligibility conditions apply. Refer to the Financial Services Guide (pdf) for more information.

1. Long service leave, https://www.fairwork.gov.au/leave/long-service-leave, accessed 13 November 2020.
2. Long service leave, https://www.fairwork.gov.au/leave/long-service-leave, accessed 13 November 2020.
3. Checklist: Salary or wages and ordinary time earnings, https://www.ato.gov.au/Business/Super-for-employers/How-much-to-pay/Checklist--salary-or-wages-and-ordinary-time-earnings/, accessed 13 November 2020.

Related Content
Overtime work Is super paid on overtime?
08 Oct 5 MIN READ

If you regularly work overtime, it’s important to understand what that means for your super.

Read more
Superannuation
IF YOU ENJOYED THIS ARTICLE, YOU MIGHT ALSO LIKE...
Overtime work Is super paid on overtime?
08 Oct 5 MIN READ

If you regularly work overtime, it’s important to understand what that means for your super.

Read more
Superannuation
manager at desk Will scheduled Super Guarantee rate rises go ahead
27 Aug 5 MIN READ

Arguments for and against increasing the rate of compulsory super contributions are making headlines. What does it mean for you?

Read more
News Superannuation
young woman at home doing finances on laptop How to rebuild a $10,000 early super withdrawal
01 Jun 5 MIN READ

Recover your early super withdrawal.

Read more
Finance News Superannuation
young couple standing in front of a house Can I use my super for a house deposit?
12 Feb 5 MIN READ

Did you know you could potentially use your super to buy your first home?

Read more
Finance Superannuation
All Articles News Superannuation Retirement Finances Investments Career Wellbeing
  • Our products
    • Why QSuper?
    • Investment options
    • Fees
    • Insurance
    • Financial advice
  • Super & retirement
    • How much do you need?
    • Grow your super
    • Consolidate
    • Changing jobs
    • Seminars
    • Access your super
  • Investments
    • Performance
    • Unit prices
    • Graphs
    • Compare options
  • Calculators & Forms
    • Calculators
    • Forms
    • Publications
  • Contact us
    • 1300 360 750
      Mon-Fri   8.00am to 6.00pm AEST
  • About us
  • Careers
  • Sitemap
  • Privacy
  • Security
  • Disclaimer
  • Terms and conditions
  • Disclosure
© QSuper Board
2020 awards
Facebook Twitter LinkedIn YouTube