Who Is Entitled to Severance Pay in Turkey?
Severance is due to employees with at least 1 full year of service with the same employer when the contract ends in circumstances defined by law: dismissal without just cause, justified immediate resignation by the employee (health, breach of good faith, force majeure), military service, retirement, or — for female employees — resignation within one year of marriage.
An employee who simply resigns is generally not entitled — the most common misconception.
How It Is Calculated: Inclusive Wage and the Cap
For each full year of service the employee receives 30 days of the 'inclusive' gross wage (base salary plus regular benefits such as meal and transport allowances); remaining months are added pro rata. If the inclusive wage exceeds the statutory severance cap (updated every January and July), the cap is used instead.
Worked Example
7 years 6 months of service, inclusive gross wage 45,000 TL: 7 × 45,000 = 315,000 TL, plus 6/12 × 45,000 = 22,500 TL. Total gross severance 337,500 TL. Severance is exempt from income tax; only stamp duty (0.759%) is withheld.
Severance vs. Notice Pay
Notice pay compensates for missing notice periods (2–8 weeks depending on tenure) and — unlike severance — is subject to income tax. The calculator above applies all of these rules automatically, including the cap and stamp duty.
2026 Severance Cap in Turkey
For January–June 2026 the statutory severance cap is 64,948.77 TL; for July–December 2026 it is 73,729.87 TL. If the inclusive gross wage exceeds the cap, the cap is used in the calculation.
Inclusive gross 80,000 TL, 5 years' service (January–June 2026 cap): instead of 400,000 TL, severance = 64,948.77 × 5 = 324,743.85 TL gross.
Severance Checklist
- ✓ All regular benefits included in inclusive wage?
- ✓ Cap applied?
- ✓ Partial months added pro rata?
- ✓ Stamp duty only (no income tax on severance)?
- ✓ Notice pay calculated separately?