Severance Pay Calculator in Turkey

How Do You Use the Severance Pay Calculator in Turkey?

To calculate severance pay in Turkey with this calculator, the start date, the end date and the monthly gross salary must be entered; if regular benefits and the annual bonus are also entered, the calculation is made on the gross wage including these benefits. The calculator automatically applies the Turkish severance pay ceiling of the period in which the employment ended. The result is shown as a net amount after deducting the stamp tax of 0.759% required under Turkish tax law from the gross severance pay.

1. Can Severance Pay Be Calculated from the Net Salary in Turkey?

In Turkey, severance pay is calculated on the gross wage, not on the net salary, so the gross wage must first be determined to calculate severance pay from a net salary. The gross wage appears on the employee’s monthly payslip. If the payslip is not available, the net salary can be converted to gross; however, because this conversion depends on the income tax bracket and the minimum wage exemption, the result will only be approximate.

2. Is the Amount Shown by the Calculator Final under Turkish Law?

The calculator’s result is a preliminary calculation based on the information entered and does not determine whether the employee is entitled to severance pay under Turkish law. The reason for termination, the periods counted as service and the benefits added to the wage may vary depending on the specific case. To avoid calculation errors and prevent the loss of legal entitlements, it is advisable to consult a Turkish labor law expert.

How Is Severance Pay Calculated in Turkey?

In Turkey, severance pay is calculated based on 30 days’ gross wage for each full year of employment, using the employee’s gross wage including regular benefits (known in Turkish law as giydirilmiş ücret). As of 2026, the calculation is based on the employee’s last gross wage at the time the employment contract is terminated, and the amount payable for one year of service cannot exceed the severance pay ceiling in force on the termination date. This ceiling is TRY 73,729.87 for the period from 1 July to 31 December 2026.

The legal basis of the calculation is Article 14 of Turkish Labor Law No. 1475, which is still in force. Under this article, the employee is paid severance pay equal to 30 days’ wage for each full year of service, and the payment is calculated on the employee’s last wage.

Under Turkish labor law, severance pay is calculated in the following order:

1. Determining the length of service: The period from the start date to the termination of the employment contract is calculated in years, months and days.
2. Finding the gross wage including benefits: Regular benefits and the monthly equivalent of the annual bonus are added to the last monthly gross wage.
3. Comparing with the ceiling: If the gross wage including benefits exceeds the severance pay ceiling on the termination date, the ceiling is used in the calculation.
4. Calculating the gross severance pay: The base wage is multiplied by the number of full years, and a proportional amount is added for the remaining months and days.
5. Deducting stamp tax: Stamp tax at 0.759% is deducted from the gross amount to reach the net payment.

For example, if an employee worked at a workplace for exactly 6 years and had a final gross monthly salary of 40,000 TL, the severance pay calculation for 2026 in Turkey would be as follows:

6 years × 30 days × 1,333.33 TL (daily gross wage) = 240,000 TL (gross severance pay) – 1,821.60 TL (0.759% stamp tax) = 238,178.40 TL (net severance pay payable to the employee in Turkey).

In this calculation, not only the base gross salary is considered, but also additional benefits such as transportation and meal allowances. Therefore, the gross wage including all such benefits is used as the basis for calculating severance pay under Turkish law.

• How Are Periods Exceeding One Year Added to Severance Pay in Turkey?

Under Turkish law, severance pay is also paid proportionally for the months and days exceeding a full year, at the same rate applied to full years. For example, for an employee who worked 6 years and 4 months with a gross wage of 40,000 TL including benefits, 13,333.33 TL is added for the 4 months to the 240,000 TL for 6 years, making a gross severance pay of 253,333.33 TL. The calculator applies this proportion on a daily basis.

• How Much Is Severance Pay for 1, 5 and 10 Years in Turkey?

In Turkey, severance pay for one year of service equals one month’s gross wage including benefits, but this amount cannot exceed TRY 73,729.87 for terminations between 1 July and 31 December 2026. The table below shows gross severance pay amounts by years of service for 2026 based on the gross minimum wage, a gross wage of 40,000 TL and the ceiling. The amounts are gross figures before stamp tax and are calculated for terminations in the second half of 2026.

What Is the Difference Between Severance Pay and Notice Pay in Turkey?

In Turkey, severance pay compensates the employee for the length of service, whereas notice pay is owed by the party that terminates the employment contract without observing the statutory notice period. Notice pay equals the wage for the notice periods of 2 to 8 weeks under Article 17 of Labor Law No. 4857; unlike severance pay, it is not subject to the ceiling and is subject to income tax. The two payments are therefore calculated separately and may be claimed together for the same termination.

What Is the Severance Pay Ceiling in Turkey in 2026?

The severance pay ceiling in Turkey is TRY 73,729.87 for the period from 1 July to 31 December 2026. The ceiling, which was TRY 64,948.77 for the period from 1 January to 30 June 2026, was increased to this amount with the July 2026 update. The ceiling is the highest amount of severance pay that can be paid for one year of service.

Under Article 14 of Labor Law No. 1475 and Law No. 5434, the Turkish Republic Retirement Fund Law, a cap is applied to severance pay calculations in Turkey. The severance pay ceiling means that the amount payable for each year of service cannot exceed the retirement bonus granted to the highest-ranking civil servant. This cap is updated every January and July in line with civil servant salary coefficients.

Even if an employee’s gross wage including benefits exceeds this limit, severance pay in Turkey will be calculated based on the cap. The employer may voluntarily agree to pay severance above the legal ceiling; however, the excess is not treated as statutory severance pay and is subject to income tax.

• Which Date Determines the Applicable Ceiling in Turkey?

In Turkey, the severance pay ceiling in force on the date the employment contract ends is applied in the calculation. For example, a ceiling of TRY 64,948.77 applies to an employee whose contract ended on 30 June 2026, while TRY 73,729.87 applies to an employee whose contract ended on or after 1 July 2026. The calculator also selects the ceiling according to the end date entered.

• What Was the Severance Pay Ceiling in Turkey in Previous Years?

The severance pay ceiling in Turkey is redetermined twice a year, in January and July. When calculating severance pay for a past termination, the ceiling in force on that date must be used. The ceilings for recent years are shown in the table below:

• Is There a Minimum Severance Pay in Turkey?

Turkish law does not set a separate minimum amount for severance pay. However, since an employee cannot be paid less than the minimum wage, severance pay for one year of service cannot in practice fall below the gross minimum wage on the termination date. Severance pay for an employee earning the minimum wage is likewise calculated on the gross minimum wage, plus any regular benefits.

Are Employer-Provided Benefits (Transportation, Meals, etc.) Considered in Severance Pay Calculations in Turkey?

In Turkey, severance pay is not calculated solely on the employee’s base gross salary; regular benefits provided by the employer are also included. These benefits, such as transportation assistance, meal allowances, housing support and similar cash or in-kind payments, are included in the gross wage used for severance pay. The legal basis is the provision of Article 14 of Labor Law No. 1475 requiring that monetary and monetarily measurable benefits arising from the contract or the law be added to the wage.

The gross wage used for severance pay includes not only the employee’s base salary but also any continuous, regularly provided benefits. In-kind benefits are added at their monetary value. Accordingly, the following payments are generally included in the severance pay calculation under Turkish law:

• Transportation allowance: Cash travel allowance or the monetary value of the company shuttle service.
• Meal allowance: Cash meal allowance, meal cards or the monetary value of meals provided at the workplace.
• Housing assistance: Regularly provided rent assistance or company housing.
• Regular bonuses or performance premiums: The monthly equivalent of bonuses and premiums paid in the last year.
• Employer-paid contributions to private health insurance or pension plans: The portion regularly paid by the employer.

However, these payments must be of a continuous nature. Occasional or discretionary payments are not included in the severance pay calculation according to Turkish case law. Payments such as overtime pay, weekly rest day pay and public holiday pay depend on actual work being performed, so under the case law of the Court of Cassation they are not included in the severance pay calculation.

In its decision Court of Cassation 9th Civil Chamber, Merits No. 2020/7954, Decision No. 2020/18287, 14.12.2020, the Turkish Court of Cassation clearly stated that overtime pay is not taken into account as an addition to the wage when determining the wage on which severance pay is based. The Chamber reversed the judgment because the calculation had been made on a wage that included overtime payments. Overtime payments appearing on the payslip every month should therefore not be entered into the calculator as extra pay.

What Deductions Are Made from Severance Pay in Turkey?

In Turkey, only stamp tax at 0.759% is deducted from severance pay; severance pay up to the ceiling is exempt from income tax and is not subject to social security premiums. Severance pay in Turkey is a lump-sum compensation paid by the employer to an employee who has worked for a certain period, upon termination of the employment contract or due to reasons such as retirement. In terms of legal deductions, this payment is subject to a regime different from that of ordinary wages, as explained below.

1. Income Tax Deduction: According to Article 25/7 of the Income Tax Law, severance pay in Turkey is exempt from income tax. That means the portion of the severance pay up to the severance pay ceiling is not subject to income tax. However, if the employer pays an amount exceeding this ceiling, the excess portion is subject to income tax as wages.
2. Stamp Tax Deduction: Under Stamp Tax Law No. 488, a stamp tax of 0.759% is deducted from severance pay in Turkey. This tax is calculated over the total gross amount of the severance payment.
3. Social Security Premium: Since severance pay is made due to the termination of the employment contract, it is not subject to social security premiums. Therefore, no SGK (Social Security Institution) premium is deducted from this payment, regardless of the employment termination code.

In summary, while severance pay in Turkey is largely exempt from taxation, income tax is applied to amounts exceeding the legal ceiling, and stamp tax is deducted from the total payment. To ensure accurate calculation of these legal deductions, it is advisable to consult a tax lawyer in Turkey.

Which Periods of Employment Are Considered in Severance Pay Calculation in Turkey?

In Turkey, the calculation of severance pay is based on the total duration of the employee’s service with the same employer, at one or more of its workplaces. However, this duration may vary depending on the nature of employment and the type of employment contract in Turkey. Periods for which severance pay has already been paid are not counted again.

1. How Is Full-Time Service Calculated for Severance Pay in Turkey?

Under Turkish law, the entire period from a full-time employee’s start date to the termination date is counted without interruption. Periods of paid annual leave or medical leave are, as a rule, not excluded from the total working period; however, the part of continuous sick leave exceeding the notice period by six weeks and periods during which the employment contract is suspended, such as unpaid leave, are not counted. Periods worked at different workplaces of the same employer are also combined into a single length of service.

In its decision Court of Cassation 9th Civil Chamber, Merits No. 2025/3201, Decision No. 2025/4965, 29.05.2025, the Turkish Court of Cassation stated that, under the Chamber’s settled case law, periods during which the employment contract is suspended, such as periods of unpaid leave, are as a rule not included in the service on which severance pay is based. The same decision recalled that the part of continuous sick leave exceeding the notice period by six weeks is not added to service, and held that unpaid leave imposed unilaterally by the employer during the Covid-19 period counts towards service up to the notice period plus six weeks.

2. How Is Service Calculated for Part-Time Employees in Turkey?

In Turkey, part-time employees are also entitled to severance pay, which is calculated on the wage they receive for their part-time work. There are two approaches in practice for determining the length of service:

• taking the calendar period during which the contract continued,
• adding up the days actually worked and prorating them against full-time work.

For example, under the second approach, the service of an employee who works 3 days a week in Turkey is evaluated in proportion to the days actually worked compared with a full-time employee.

3. Which Periods Count for Seasonal Workers in Turkey?

In Turkey, the length of service in seasonal work is found by adding up only the periods actually worked during the seasons. The off-season periods between seasons are not added to the length of service, as the employment contract is considered suspended. Therefore, a seasonal worker’s severance pay is calculated on the total of the season periods worked each year.

Accurately determining the total period of service is essential in severance pay calculations in Turkey. Whether certain periods are included or excluded depends on the terms of the employment contract and applicable legal regulations. Seafarers, for instance, are subject to Turkish Maritime Labor Law, and different calculation methods apply for them.

What Are the Conditions for Severance Pay in Turkey?

In Turkey, the conditions for severance pay are that the employee has worked for the same employer for at least one year and that the employment contract has ended in one of the ways listed in Article 14 of Labor Law No. 1475. Under Turkish law, both conditions must be met together; if the contract of an employee with one year of service ends in any other way, no severance pay arises. The main situations giving rise to severance pay under Turkish labor law are summarized in the table below:

• Can an Employee with Less than 1 Year of Service Get Severance Pay in Turkey?

In Turkey, an employee who has worked for the same employer for less than one year is not entitled to severance pay. Since Article 14 of Labor Law No. 1475 grants severance pay for each full year of service, at least one year of work is required in practice. The one-year period is calculated by adding up work at one or more workplaces of the same employer. For an employee who has completed one year, the months and days exceeding the year are added proportionally.

• Is Severance Pay Paid at the End of a Fixed-Term Contract in Turkey?

Under the case law of the Turkish Court of Cassation, as a rule no severance pay arises when a fixed-term employment contract ends automatically upon expiry of the agreed term. However, if the contract is terminated before its expiry by the employer without just cause, or by the employee for just cause, severance pay is due provided the other conditions are met. Successive (chain) fixed-term contracts concluded without a material reason are treated as indefinite-term contracts from the outset under Article 11 of Labor Law No. 4857.

In its decision Court of Cassation 9th Civil Chamber, Merits No. 2020/5666, Decision No. 2021/4065, 17.02.2021, the Turkish Court of Cassation stated that, since Labor Law No. 1475 does not list the automatic expiry of a fixed-term contract among the grounds for severance pay, as a rule no severance pay is due in that case. The Chamber accepts that severance pay is due on expiry where the contract rests on an objective reason arising from law, and stresses that, unless the decision not to renew comes from the employer, the employee is not entitled to severance pay on automatic expiry.

Can an Employee Claim Severance Pay After Resigning in Turkey?

In general, an employee who voluntarily resigns without just cause is not entitled to severance pay in Turkey. Severance pay is granted when the employment contract is terminated by the employer or ends under specific legal conditions. To be entitled to compensation for dismissal in Turkey, the employee must be dismissed by the employer for a reason other than a breach of ethics and good faith.

However, certain departures that amount to resignation give rise to severance pay under Turkish law. These cases are briefly explained below.

• Can an Employee Who Resigns for Just Cause Get Severance Pay in Turkey?

Under Article 24 of Turkish Labor Law No. 4857, an employee may resign for just cause and still be eligible for severance pay in Turkey. For the employee to terminate the contract for just cause, one of the following situations must occur:

1. Health Reasons: The employee’s health or way of life is endangered for a reason arising from the nature of the work, or the employer or another employee with whom the employee is in close and direct contact on a regular basis contracts a contagious disease or one incompatible with the employee’s work.
2. Violation of Ethics and Good Faith: The employer insults the employee, subjects them to mobbing, fails to pay wages in accordance with the law or the contract, or fails to apply the working conditions.
3. Compelling Reasons: Compelling reasons arise at the workplace that require work to stop for more than one week.

• Can a Retiring Employee or One with 15 Years and 3,600 Days Get Severance Pay in Turkey?

In Turkey, an employee who leaves to receive an old-age pension, and an employee who leaves voluntarily after completing the insurance period and premium days required for retirement other than age, are entitled to severance pay. For those insured before 8 September 1999, this condition is known in practice as 15 years of insurance and 3,600 days of premium payment. Different periods and day counts apply to those insured later; for example, 4,500 premium days alone are not sufficient before the 25-year insurance period is completed.

• Can a Female Employee Who Leaves Due to Marriage Get Severance Pay in Turkey?

In Turkey, a female employee who terminates her employment contract voluntarily within one year of her marriage date is entitled to severance pay. In this case she does not need to show any separate just cause; however, the minimum one-year service requirement still applies. A resignation made after the one-year period does not give rise to severance pay on grounds of marriage.

• Can an Employee Who Leaves for Military Service Get Severance Pay in Turkey?

In Turkey, an employee who terminates the employment contract due to compulsory military service is entitled to severance pay. The employee submits the conscription document or a letter from the military recruitment office to the employer to show that the departure is due to military service. This right also requires that the employee has worked for at least one year.

In conclusion, employees who resign without just cause or a statutory exception are not entitled to severance pay in Turkey. However, if one of the legally recognized grounds is present, the employee may rightfully claim severance pay and other employment-related entitlements in Turkey.

When Is Severance Pay Paid in Turkey and Is Interest Charged for Late Payment?

In Turkey, severance pay becomes due on the date the employment contract ends and must be paid by the employer on that date. If severance pay is not paid on time, the court awards the highest interest rate applied to deposits for the period of delay under Article 14 of Labor Law No. 1475. Since this rate is higher than the statutory interest rate, the rule favors the employee.

• Can Severance Pay Be Paid in Instalments in Turkey?

Turkish law contains no provision allowing severance pay to be paid in instalments, so payment in instalments is only possible with the employee’s consent. Partial payments made without the employee’s consent do not discharge the debt, and interest continues to run on the unpaid portion. If an instalment agreement is made, the payment dates and amounts should be set out in writing.

• What Is the Limitation Period for Severance Pay in Turkey?

In Turkey, severance pay claims are subject to a five-year limitation period starting from the date the employment contract ends. This period is regulated in Additional Article 3 of Labor Law No. 4857 and applies to contracts ending after 25 October 2017. Before filing a lawsuit within the limitation period, an application to mediation is mandatory.