7 Employee entitlements 2020 $000 2019 $000 Accrued salaries 103 41 Annual leave 366 211 41 28 510 280 Retirement and long service leave 91 98 Total non-current portion 91 98 601 378 Current portion Retirement and long service leave Total current portion Non-current portion Total employee entitlements Employee entitlements payable at 30 June 2020 were $223,000 higher than last year because of less annual leave taken during the period. 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. 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 1.63 percent (2019: 2.23 percent) and an inflation factor of 2.72 percent (2019: 3.1 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 future payments are discounted using forward discount rates derived from the yield curve of 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. 49