8. Employee entitlements 2023 $000 2022 $000 592 792 47 45 639 837 Retirement and long-service leave 94 99 Total non-current portion 94 99 733 936 Current portion Annual leave Retirement and long-service leave Total current portion Non-current portion Total employee entitlements The annual leave liability has reduced due to lower staffing levels and encouraging staff to take their annual leave. 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. 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 5.43 percent (2022: 3.34 percent) and an inflation factor of 2.05 percent (2022: 3.87 percent) were used. 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 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. 67