Breaking Down the Numbers: What’s the Actual LeavePlus Percentage?

 Curious about how LeavePlus is calculated? Here’s the percentage rate employers pay, how it works, and what it means for construction businesses.

Curious about how LeavePlus is calculated? Here’s the percentage rate employers pay, how it works, and what it means for construction businesses.

LeavePlus makes long service leave portable for construction workers—but what’s the actual percentage employers have to pay? Let’s unpack the numbers and what they mean for your payroll.

Breaking Down the Numbers: What’s the Actual LeavePlus Percentage?

If you're running a business in the construction industry in Victoria, LeavePlus (formerly CoINVEST) is something you can’t ignore. It ensures long service leave entitlements for workers who move between employers—but it also means you need to contribute regularly. So, how much does LeavePlus cost? What’s the percentage rate—and how does it impact your business?

What Is the LeavePlus Percentage?

As of the latest published rate, LeavePlus requires employers to contribute 2.7% of each eligible worker’s gross ordinary wages. This percentage is calculated quarterly and paid directly to LeavePlus.

The contribution covers the cost of the worker’s portable long service leave and ensures they’re building up entitlements even if they switch jobs or work with multiple employers.

What Does That 2.7% Cover?

The 2.7% rate is designed to fund:

  • The worker’s long service leave payout when eligible

  • Administration and management of the scheme

  • Record-keeping across multiple employers

  • Compliance monitoring

It’s not deducted from the worker’s pay—it’s an employer cost, similar to superannuation or workers’ compensation.

When and How Is It Paid?

Employers must submit quarterly returns and payments via the LeavePlus portal. The process includes:

  • Reporting gross wages for eligible workers

  • Applying the 2.7% rate to those wages

  • Paying the contribution by the due date

Automating this through your payroll or working with your accountant helps keep everything compliant and stress-free.

Are All Employees Covered?

LeavePlus applies to most workers doing physical, on-site construction work in Victoria. This includes:

  • Carpenters

  • Electricians

  • Labourers

  • Plumbers

  • And more

If you’re unsure whether your team is covered, it’s best to review the official eligibility guide or speak to an adviser.

Why Does It Matter?

Failing to contribute the correct percentage or report on time can lead to penalties, interest, and back payments. But when managed correctly, LeavePlus:

  • Removes long service leave liabilities from your balance sheet

  • Makes leave portable and fair for workers

  • Simplifies administration over the long term

Still Wrapping Your Head Around It?

LeavePlus might seem like just another payroll burden—but it’s a powerful system for ensuring fairness across a fluid, project-based industry. For a full explainer, check out our breakdown of what is leaveplus and how it affects your construction business.

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