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OHAQLPP035 - Check Constants for Leave Provisions

OHAQLPP035 - Check Constants for Leave Provisions

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Leave provision constants (also known as leave provision calculation factors) are values, percentage rates and on-costs used to calculate leave provisions for long service leave, annual/recreational leave and other leave types.

The standard system, contains preconfigured leave provision constants that you check, and if necessary, modify in this step.

The following constants are used to calculate leave provisions for long service leave:

  • Years of service
The number of years the employee has been employed by the company.
  • Probability factor
This is a company-specific value that is applied to each year of service based on the probability that the employee will be entitled to long service leave. The standard system contains long service leave probability factors for years 1 to 10+ (PRF01 - PRF11).
  • Escalation rate
This is a company-specific rate that is entered for each year of service and used for the addition of on-costs. The standard system contains escalation rates for years 1 to 10+ (ESC01 - ESC11).
  • Inflation rate
This is the actual or projected rate for a year. The standard system contains inflation rates for years 1 to 10+ (INF01 - INF11).
  • Bond rate
This is the percentage rate for the net present value. The rate is based on the national government security rate. The standard system contains bond rates for years 1 to 10+ (BND01 - BND11).

The following constants are used to calculate leave provisions for annual/recreational leave and other types of accruing leave:

  • Probability factor
In the standard system, this is assumed to be 100 percent.
  • Escalation rate
In the standard system, this is set to the escalation rate for year 10+ (ESC11), because rates ESC01 to ESC10 are only used in long service leave calculations.

The following constants are used to calculate leave provisions for non-accruing leave:

  • Probability factor
In the standard system, this is assumed to be 100 percent.
  • Escalation rate
In the standard system, this is set to the escalation rate for year 10+ (ESC11), because rates ESC01 to ESC10 are only used in long service leave calculations.

  1. Check whether the existing constants meet your requirements.
  2. If required, enter new constants and the relevant validity dates and values.






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