7 Employee entitlements 2018 $000 2017 $000 Accrued salaries, redundancy and one-time payments 145 290 Annual leave 192 292 22 20 359 602 Retirement and long service leave 85 88 Total non-current portion 85 88 444 690 Current portion Retirement and long service leave Total current portion Non-current portion Total employee entitlements Employee entitlements payable at 30 June 2018 were $246,000 lower than last year because of lower annual leave balances and the settlement of one-time and cessation payments relating to the prior year. The liability for retirement and long-service leave entitlements is carried at the present value of estimated future cash flows, calculated based on several factors determined on an actuarial basis. Two key assumptions used in calculating the retirement and long-service leave liability include the discount rate and the salary inflation factor. Any changes in these assumptions will impact on the carrying amount of the liability. Expected future payments are discounted using forward discount rates derived from the yield curve of New Zealand government bonds. The salary inflation factor has been determined based on the long-term annual increase in salaries and wages expected by the New Zealand Treasury. A discount rate of 3.55 percent (2017: 3.92 percent) and an inflation factor of 3.1 percent (2017: 3.1 percent) were used. Because the carrying amount of the retirement and long-service leave liability is small, the impact of either the discount rate or salary inflation factor differing by one percentage point from that used is negligible. 70 Human Rights Commission