Severance Pay Calculator
Under Article 14 of Labour Law No. 1475, severance equals 30 days of dressed gross wage per full year of service, capped at the statutory ceiling for the termination period.
Dressed wage components
Parameters last updated: 9 July 2026
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How is severance pay calculated in Turkey?
Under Article 14 of Labour Law No. 1475 (kept in force by Labour Law No. 4857), an employee is entitled to 30 days of "dressed" gross wage for each full year of service with the same employer, plus a pro-rata amount for the remaining days (divided by 365). The dressed wage adds regular benefits — transport and meal allowances, one twelfth of the annual bonus and other continuous payments — to the last gross monthly salary. One-off payments such as overtime are excluded.
The 2026 severance cap
Severance per year of service cannot exceed the statutory ceiling, updated by the Treasury and Finance Ministry every January and July. The cap is TRY 64,948.77 for 1 January – 30 June 2026 and TRY 73,729.87 for 1 July – 31 December 2026. The cap in force on the termination date applies, regardless of the payment date.
Eligibility and deductions
At least one full year of service is required, and the contract must end in one of the qualifying ways: employer termination (other than Art. 25/II), employee just-cause termination (Art. 24), military service, retirement, the 15-year/3,600-day route, marriage (female employees, within one year) or death. Resignation without just cause and employer termination under Art. 25/II do not qualify. The only deduction is stamp tax at 0.759%; no income tax or social security premium is withheld. The limitation period is five years for terminations after 25 October 2017.
Frequently Asked Questions
What is the Turkish severance pay cap in 2026?
TRY 73,729.87 for terminations between 1 July and 31 December 2026, and TRY 64,948.77 for the first half of 2026. The cap of the termination period applies.
What is deducted from severance pay?
Only stamp tax at 0.759%. Severance pay is exempt from income tax and social security premiums under Article 25/7 of the Income Tax Law.
Can an employee who resigns receive severance pay?
Not for a resignation without just cause. Termination by the employee for just cause (Art. 24), military service, retirement, the 15-year/3,600-day route and marriage (female employees, within one year) do qualify.
Is there a minimum length of service?
Yes. At least one full year of uninterrupted service with the same employer is required; below that no severance is due.
Does interest accrue on late severance payments?
Yes. Unpaid severance accrues the highest bank deposit interest rate from the termination date onwards (Art. 14/11 of Law No. 1475).