Severance Pay Calculation: 2026 Updated Guide

Severance pay is one of the most fundamental institutions in Turkish labor law, regulated by Article 14 of the former Labor Law No. 1475, which remains in effect.

1. Eligibility Conditions

Two fundamental conditions must be met:

1. Minimum employment: At least 1 full year with the same employer
2. Termination for specified reasons

2. Calculation Formula

Severance Pay = Last Gross Salary × Years of Service

30 days' gross salary is paid for each full year of service. Remaining periods are prorated.

Components Included in Gross Salary:

• Base salary, meal allowance, transportation allowance
• Regular bonuses and premiums
• Clothing allowance, family allowance

3. Severance Pay Ceiling

Severance pay cannot exceed the ceiling amount, which is updated every 6 months.

4. Statute of Limitations and Interest

• Limitation: 5 years from termination date
• Interest: Highest bank deposit interest rate from termination date

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This article is for informational purposes only. For detailed calculation and legal evaluation of your severance pay, please contact Atty. Evrim Yazan.

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