Many Australian workers continue to receive their regular salary when they take particular types of leave, including long service leave.
The Australian Taxation Office (ATO) states that your employer needs to pay your superannuation guarantee (SG) contributions, even when you’re on a long service leave.
To better understand if you’ll receive your superannuation guarantee on long service leave, it’s helpful to understand long service leave benefits and allowances.
Who gets long service leave?
Long service leave is a workplace perk that applies to eligible people who have served for a significant period of time for the same employer.
Exactly how long an employee needs to work for a company before qualifying for long service leave depends on the state and territory they live in. The employee’s location may also have an impact on how long the employee can take off.
In most situations, long service leave is paid at the employee’s regular pay rate, which is the base pay rate for ordinary hours of work. This does not include additions such as shift penalties or overtime.
Is superannuation paid on long service leave?
Whether you receive superannuation payments on long service leave depends on when you take your entitlement, according to the Australian Tax Office (ATO).
If an employee takes their leave then returns to the same job, they must be paid super on top of their regular salary.
Alternatively, if an employee receives their long service leave allowance as a lump sum when they are terminated or resign from their job, they will not be eligible to receive any super.