By Team SalaryCalculate · 1/7/2026
Long Service Awards in Redundancy: Recognising Loyalty
In the unfortunate event of a redundancy, UK law has provisions in place to recognise the loyalty and long service of employees. The statutory redundancy pay is calculated based not only on the employee's salary but also on the length of service. Understanding these calculations can help employees prepare financially for the possibility of redundancy.
Basics of Statutory Redundancy Pay
Statutory redundancy pay is the minimum payment that an employer must make if they're making an employee redundant. The amount is calculated based on:
The employee's weekly pay
Their length of service at the company
Their age
As of April 2025, the maximum weekly pay cap for redundancy calculations is £719. Employees can receive up to 1.5 week's pay for each full year they were aged 41 or above, 1 week's pay for each full year they were aged 22-40, and 0.5 week's pay for each full year they were aged under 22. The maximum total payment is £21,570 (£719 × 20 years × 1.5). To calculate your potential redundancy pay, use our [redundancy severance calculator](/tools/uk/england/redundancy-severance-calculator).
Long Service Awards
Long service awards in redundancy are an important aspect of the statutory redundancy pay calculation. The longer an employee has served, the higher their redundancy pay will be.
Here's a simple table illustrating how statutory redundancy pay is adjusted for length of service:
Enhanced Redundancy Packages
Some employers offer enhanced redundancy packages to their employees. These packages can significantly increase the amount of redundancy pay an employee receives, often by including additional elements such as a pension contribution or a long service bonus. To understand more about these packages, check out our article on [enhanced-redundancy-packages](/blog/enhanced-redundancy-packages).
Edge Cases
There are certain exceptions and special cases to be aware of:
If the weekly pay is less than £719, the actual weekly pay is used for calculations.
If an employee has been in the same job for part of a year, that part is not counted. Only full years are taken into account.
The maximum length of service that can be taken into account is 20 years.
FAQs
**Q: How is a week's pay calculated?**
A: A week's pay is calculated based on the employee's gross weekly wage, up to the current maximum cap of £719.
**Q: What if I have been with my employer for more than 20 years?**
A: Statutory redundancy pay is capped at 20 years. This means that even if you have worked for your employer for longer, your redundancy pay will be calculated based on a maximum of 20 years of service.
**Q: Can I get redundancy pay and a pension?**
A: Yes, you can receive both a redundancy payment and a pension. Your employer may also contribute to your pension as part of an enhanced redundancy package. Use our [redundancy pension calculator](/tools/uk/england/redundancy-pension-calculator) to estimate your redundancy pension.
Understanding your rights and entitlements in redundancy situations is crucial. While it's never pleasant to face redundancy, being informed can help you prepare and face the future with greater confidence.
