10. Employee entitlements 2014 $000 2013 $000 23 18 494 706 30 56 547 780 Retirement and long service leave 78 87 Total non-current portion 78 87 625 867 Current portion Accrued salaries and wages Annual leave Retirement and long service leave Total current portion Non-current portion Total employee entitlements The liability for retirement and long service leave entitlements is carried at the present value of estimated future cash flows. 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. A discount rate of 5.5% (2013: 5.5%) was used which reflects the expected long-term interest rate on government bonds. A salary inflation factor of 3.5% (2013: 3.5%) was used which is the long-term annual increase in salaries and wages expected by the New Zealand Treasury. If the discount rate were to increase or decrease by 1% from that used, with all other factors held constant, the carrying amount of the retirement and long service leave liability would be an estimated $6,000 (2013: $7,000) lower or higher respectively. If the salary inflation factor were to increase or decrease by 1% from that used, with all other factors held constant, the carrying amount of the retirement and long service leave liability would be an estimated $7,000 (2013: $8,000) higher or lower respectively. 85