7 Employee entitlements 2019 $000 2018 $000 41 145 211 192 28 22 280 359 Retirement and long service leave 98 85 Total non-current portion 98 85 378 444 Current portion Accrued salaries, redundancy and one-time payments Annual leave Retirement and long service leave Total current portion Non-current portion Total employee entitlements Employee entitlements payable at 30 June 2019 were $66,000 lower than last year because of the settlement of cessation payments in 2018. 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 2.23 percent (2018: 3.55 percent) and an inflation factor of 3.1 percent (2018: 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. Annual Report 2019 81