How is severance pay calculated in Turkey?
Under Article 14 of the former Labour Law No. 1475, which remains in force, severance pay equals 30 days' gross wages for each full year of service, with a proportional amount for additional months and days. The calculator follows these steps:
- Length of serviceThe period between the start date and the date the employment contract ended, in years, months and days.
- Wage including benefitsRegular payments such as meal, transport allowances and regular bonuses are added to the last gross wage at their monthly gross value. Irregular payments such as overtime are generally not included.
- CapIf this wage exceeds the severance pay cap in force on the termination date, the cap is used instead.
- AmountWage used × full years + wage used ÷ 12 × months + wage used ÷ 365 × days.
- DeductionsSeverance pay is exempt from income tax and social security contributions; only stamp duty of 0.759% is deducted.
The severance pay cap for 1 July – 31 December 2026 is TRY 73,729.87. It is linked to the maximum retirement bonus paid to civil servants and is updated every January and July. The cap in force on the termination date applies.
Who is entitled to severance pay?
The employee must have worked for the same employer for at least one year, and the contract must end in one of the ways listed in the law, for example termination by the employer other than for breach of morality and good faith, resignation for just cause, leaving for retirement or military service, or a female employee leaving within one year of marriage. Foreign employees working in Turkey under Turkish employment contracts are covered by the same rules. See our labour law guide for the full list.
Payment, interest and time limits
Severance pay falls due when the contract ends. If it is paid late, the highest interest rate applied to bank deposits can be claimed (Law No. 1475, Art. 14). Claims are time-barred five years after the contract ends (Labour Law No. 4857, Additional Art. 3), and mandatory mediation applies before filing suit. Where the notice period was not observed, notice pay may also be due.
This tool gives a general estimate. Which payments count towards the wage, how service is calculated and the cap amount can vary with the facts. For an exact calculation, consult a lawyer with your payslips and employment contract.
Frequently asked questions
Is Turkish severance pay calculated on gross or net wages?
On the gross wage including regular benefits. Only stamp duty of 0.759% is deducted; income tax and social security contributions are not.
What is the severance pay cap?
The maximum amount payable for each year of service. For 1 July – 31 December 2026 it is TRY 73,729.87; it is updated every January and July.
Do foreign employees in Turkey get severance pay?
Yes. Foreign nationals working under a Turkish employment contract are subject to the same severance pay rules as Turkish employees.
Can I get severance pay if I resign?
As a rule, not if you resign without just cause. It is payable on resignation for just cause under Article 24 of the Labour Law, and when leaving for retirement, military service or, for women, within one year of marriage.
I worked less than one year. Am I entitled?
No. At least one year of service with the same employer is required. Notice pay and other claims may still be available.
How long do I have to claim severance pay?
Five years from the end of the contract. Mediation is mandatory before filing suit.
This calculator and the information on this page are for general information only and do not constitute legal advice. Results are estimates; the actual amount depends on eligibility, your employment contract and the facts of your case. Check the current legislation and consult a lawyer before taking action. Last updated: 14 October 2026