Last source check: September 3, 2026
Short answer
The wage base for severance pay is the final gross wage including qualifying regular benefits. The amount is capped by the severance ceiling in force on the termination date; each full year gives one monthly (30-day) wage, and the remaining period is prorated.
Entitlement arises after at least one year with the same employer and a qualifying termination reason under the law. An ordinary resignation does not create severance entitlement. Severance pay and notice pay do not automatically arise together, and their tax treatment also differs.
Who can receive severance pay?
Under the current Article 14 of Law No. 1475, severance pay does not arise on every departure from employment. The employee must have worked for at least one year with the same employer. In addition, the reason for termination must be one of the qualifying cases in the law:
- Termination by the employer other than under Article 25/II of Law No. 4857
- Termination by the employee for just cause under Article 24 of Law No. 4857
- Leaving work because of compulsory military service
- Retirement, disability retirement, or completion of retirement conditions other than age
- A female employee leaving within one year from the date of marriage
- Death of the employee (the compensation is paid to the legal heirs)
- Immediate termination by the employer for just cause under Article 25/II does not create severance entitlement
An ordinary resignation does not create severance entitlement. It is not correct to say that everyone who has worked for a certain number of years can resign and receive severance, or that the 15 years / 3,600 days rule applies to everyone. The required premium days and age for retirement may vary according to the insurance start date, so the certificate and period conditions must be checked in the specific case.
Resigning solely because of pregnancy or childbirth does not automatically create severance entitlement. Entitlement must be assessed separately if there is a justified termination under Article 24 or another qualifying legal ground.
A transfer of the workplace does not by itself give the employee a right to claim severance. Service before and after the transfer is counted together for severance purposes. The Press Labour Law, the Maritime Labour Law, public servants and special regimes must be assessed separately from this general guide.
Correct calculation formula
Under the current Article 14 of Law No. 1475 and the Ministry of Labour explanation, 30 days' wages are paid for each full year, and periods exceeding one year are calculated at the same rate. This rule does not, by itself, define the tool's time-splitting method.
Gross severance = min(final gross monthly wage including qualifying regular benefits, annual severance ceiling at termination) × (full years + remaining months / 12 + remaining days / 365)
The severance calculator on this site splits service by calendar anniversaries: the start date is the beginning of service, and the exit date is the end of the period. The gross amount is the capped final gross monthly wage including qualifying regular benefits multiplied by the full years, 1/12 of the remaining months, and 1/365 of the remaining days. Total calendar days / 365 is not used. This is the tool's method; it does not replace the legal 30-day wage rule in the statute.
The two examples below are produced with this tool method. The approximate month x 30 conversion is not used.
2026 ceiling table for two periods
The relevant ceiling is the period ceiling in force on the termination date. It is not correct to generalize with a single number called the 2026 ceiling.
| Termination date | Ceiling for one year of service |
|---|---|
| 01.01.2026-30.06.2026 | TRY 64,948.77 |
| 01.07.2026-31.12.2026 | TRY 73,729.87 |
The ceiling is not the employee's total receivable. It is the maximum wage base that can be used for one year of service, and it is then prorated by the total severance period.
The Ministry's July 2026 wage and union statistics bulletin publishes the two periods separately.
The 5 most common mistakes
The following five mistakes create a risk of both underpayment and overpayment.
1. Assuming severance exists in every departure
Wrong: Anyone who has worked for a certain period can resign and receive severance, or 15 years / 3,600 days is enough for everyone.
Correct: At least one year and a qualifying termination reason under the law are required. An ordinary resignation does not create entitlement, and retirement conditions may vary according to the insurance start date.
2. Calculating from net pay or bare gross salary
Wrong: Severance is always calculated from net salary or only from the base gross salary on the payroll.
Correct: The wage base for severance pay is the final gross wage including qualifying regular benefits. Regular cash payments and benefits measurable in money may be included; not every payment is included automatically.
3. Converting time with month x 30 or another wrong formula
Wrong: Converting time by multiplying months by 30, or multiplying the year by 30 days and dividing by 365.
Correct: In this tool, min(final gross wage including qualifying regular benefits, annual ceiling) × (full years + remaining months / 12 + remaining days / 365). The law says 30 days' wages for each full year and the same rate for the remaining period; month x 30 is not used.
4. Treating the ceiling as a single figure or the total amount payable
Wrong: The 2026 ceiling is TRY 73,729.87, and that figure is the net payment or total receivable directly payable.
Correct: There are two ceilings in 2026 (TRY 64,948.77 and TRY 73,729.87). The ceiling is the annual wage-base cap for one year; stamp tax is deducted separately.
5. Putting severance and notice pay under the same entitlement and tax regime
Wrong: They are paid together in every case, and only stamp tax is withheld from both.
Correct: They may be paid together only if the separate conditions for each are met. Severance is not subject to income tax or SSI contributions; notice pay is subject to income tax and stamp tax. The severance ceiling does not apply to notice pay.
Payments included in final gross wage (qualifying regular benefits)
The wage base for severance pay is the final gross wage including qualifying regular benefits. Regular cash payments and benefits measurable in money may be taken into account:
- Regular bonuses and premiums
- Meal allowance
- Transport allowance or shuttle benefit
- Fuel and similar continuous allowances
Not every payment is included automatically. No categorical conclusion can be drawn for one-off, non-recurring or work-dependent variable payments; the specific payment item and its continuity must be assessed separately.
Severance vs notice comparison table
The two compensations do not automatically arise together. It is correct to say that they can be paid together only if the separate conditions are met.
| Topic | Severance pay | Notice pay |
|---|---|---|
| Entitlement condition | At least one year + a qualifying reason for termination under the law | Failure to observe the notice period in an indefinite-term contract |
| Duration / measure | One monthly wage for each full year; the remaining period is prorated | 14 / 28 / 42 / 56 days (2 / 4 / 6 / 8 weeks) |
| Immediate termination for just cause | Severance may arise if the reason qualifies | Notice pay may not arise in an immediate termination for just cause |
| Severance ceiling | The ceiling on the termination date applies | The severance ceiling does not apply to notice pay |
| Income tax | Not withheld from statutory severance within legal limits | Subject to income tax |
| Stamp tax and SSI | Stamp tax at 7.59 per thousand; not subject to SSI contributions | Subject to stamp tax; Article 80/b of Law No. 5510 does not include notice pay in earnings subject to premiums |
Notice periods under Article 17 of Law No. 4857 are: 14 days for less than six months, 28 days for six months to 1.5 years, 42 days for 1.5 to 3 years, and 56 days for more than three years.
Two verified numerical examples
The dates and amounts follow the anniversary method used by this site's severance calculator. The manual month x 30 shortcut or total calendar days / 365 calculation was not used.
Example 1 - Above the ceiling, one full year (H2 2026)
Termination date 15.07.2026, start date 15.07.2025, final gross wage including qualifying regular benefits TRY 75,000. The service period is exactly 1 year, 0 months and 0 days. The annual ceiling used in the calculation is TRY 73,729.87; this is not the net payment.
- Monthly amount used in the calculation (annual ceiling): TRY 73,729.87
- Gross severance: TRY 73,729.87
- Stamp tax: TRY 559.61
- Net payment: TRY 73,170.26
Stamp tax on gross severance is 7.59 per thousand: 73,729.87 × 0.00759 = 559.61 TRY. Net severance is TRY 73,170.26.
Example 2 - Below the ceiling, 7 years 6 months
Termination date 15.07.2026, start date 15.01.2019, final gross wage including qualifying regular benefits TRY 45,000. The service period is 7 years, 6 months and 0 days. TRY 45,000 is below the ceiling of TRY 73,729.87.
- Service factor: 7 + 6/12 = 7.5
- Gross severance: 45,000 × 7.5 = TRY 337,500
- The ceiling does not apply; the base is the employee's final gross wage including qualifying regular benefits
Tax and SSI deductions
For severance pay within the legal limits:
- No income tax is withheld (ITL Article 25/7; severance payable under Law No. 1475 and the Maritime Labour Law)
- It is not subject to SSI contributions (Law No. 5510 Article 80/b, lump-sum payments in the nature of severance)
- Stamp tax is 7.59 per thousand (0.759%; Schedule No. 1 to Law No. 488)
Employer payments exceeding the ceiling or the statutory exemption are not automatically fully tax-exempt. Statutory severance and additional payments such as mutual termination pay, job-security compensation or goodwill payments must be assessed separately.
Notice pay is different from severance pay:
- Subject to income tax
- Subject to stamp tax
- The severance ceiling does not apply
- Article 80/b of Law No. 5510 does not include notice pay in earnings subject to premiums
Short FAQ
Can you receive severance pay by resigning?
An ordinary resignation does not create severance entitlement. The right arises with at least one year of service and a qualifying reason for termination under the law. Leaving because of marriage applies only to a female employee and only within a one-year window from the marriage date.
Is TRY 73,729.87 the net amount to be paid?
No. TRY 73,729.87 is the ceiling base for one year of service in the period from 1 July to 31 December 2026; it is not the net payment. For one full year, gross severance is TRY 73,729.87, stamp tax is TRY 559.61, and net severance is TRY 73,170.26.
Are severance pay and notice pay always paid together?
No. They may be paid together only if the separate conditions are met. Notice pay may not arise in an immediate termination for just cause. The severance ceiling does not apply to notice pay.
Does resigning because of pregnancy or childbirth create severance entitlement?
No, not by itself. Resigning because of pregnancy or childbirth is not automatically a severance entitlement. A justified termination under Article 24 or another legal ground must be proven separately.
Can severance be claimed when the workplace is transferred?
A transfer of the workplace does not by itself create a right to claim severance. Service before and after the transfer is counted together. The Press Labour Law, the Maritime Labour Law, public servants and special regimes are assessed separately.
Official sources
This article is based on the following primary sources. Legislation may change, so check the current text before taking action.
- Ministry of Labour FAQ on the Labour Law (CSGB): https://www.csgb.gov.tr/sikca-sorulan-sorular/calisma-genel-mudurlugu/%C4%B1s-kanunu/
- CSGB July 2026 wage and severance ceiling bulletin: https://www.csgb.gov.tr/yayinlar/calisma-hayati-istatistikleri-e-bulteni/temmuz-2026/ucret-ve-sendikal-istatistikler.html
- Labour Law No. 1475, Article 14: https://www.mevzuat.gov.tr/MevzuatMetin/1.5.1475.htm
- Labour Law No. 4857, Articles 6, 17, 24 and 25: https://www.mevzuat.gov.tr/MevzuatMetin/1.5.4857.htm
- Income Tax Law No. 193, Article 25/7: https://www.mevzuat.gov.tr/MevzuatMetin/1.4.193.htm
- Stamp Tax Law No. 488, Schedule No. 1: https://www.mevzuat.gov.tr/anasayfa/MevzuatFihristDetayIframe?MevzuatNo=488&MevzuatTertip=5&MevzuatTur=1
- Law No. 5510, Article 80: https://www.mevzuat.gov.tr/mevzuatmetin/1.5.5510.pdf
Calculate your severance pay
A calculation tool that applies the 2026 ceiling according to the termination date, final gross wage including qualifying regular benefits and reason for termination.
Calculate Severance PayLegal notice
This article is for general information only; it does not resolve a specific dispute and is not legal advice. Your specific situation, your documents and the current legislation text require professional assessment.