Payroll & Social Security
Severance Pay in Türkiye: 2026 Ceiling and Examples
A practical guide to eligibility, grossed-up wage, service time, the July 2026 ceiling and calculation evidence.
Key takeaways
- One year of service alone is not enough; the termination reason must qualify.
- The calculation generally uses regular measurable benefits as well as base gross pay.
- The annual ceiling is TRY 73,729.87 for 1 July–31 December 2026; it was TRY 64,948.77 in the first half.
- Partial years are calculated proportionately.
- The termination reason, payroll, calculation and payment file must agree.
Important information
This article provides general information and is not legal, tax or investment advice. The outcome depends on the facts, the parties and current legislation.
Eligibility first
| Termination | General position |
|---|---|
| Employer termination other than qualifying just cause | May qualify, subject to at least one year |
| Employee termination for a statutory just cause | May qualify with evidence |
| Military service, qualifying retirement or marriage case | May qualify under specific conditions |
| Ordinary resignation | Generally no entitlement |
| Employer termination under Labour Law 25/II | Generally no entitlement; evidence and legal risk require review |
2026 ceiling
Use the ceiling in force on the termination date. The annual ceiling is TRY 73,729.87 from 1 July 2026 and TRY 64,948.77 for 1 January–30 June 2026. If the grossed-up monthly wage is lower, use that lower figure.
Illustrative calculations
| Case | Calculation | Gross amount |
|---|---|---|
| TRY 63,000 eligible wage; 5 years 4 months | 63,000 × 5.333 | Approx. TRY 335,979 |
| TRY 90,000 wage; 3.5 years; July ceiling | 73,729.87 × 3.5 | TRY 258,054.55 |
Evidence file
- Termination notice and legal reason
- SGK exit and service dates
- Latest payroll and regular benefits
- Day-based calculation
- Bank payment and tax treatment
- Settlement or mediation documents where relevant
What may enter the grossed-up wage?
| Component | General approach | Evidence |
|---|---|---|
| Last gross salary | Base of the calculation | Contract and final payroll |
| Regular meal/transport benefit | May be included if regular and measurable | Monthly gross value |
| Recurring bonus | Assess continuity and earning pattern | Agreement and payment history |
| One-off award | Generally excluded where not continuous | Purpose and recurrence |
| Overtime | Requires a fact-specific continuity review | Time and payroll history |
Day-based calculation and cut-off
Calculate service using the actual start and termination dates, then review unpaid leave, workplace transfer, interrupted service and predecessor-employer periods. Apply the ceiling in force on the termination date. The exit code is evidence but does not override the real legal reason for termination.
Tax and payment control
- Separate statutory severance from any additional settlement payment
- Check the income-tax exemption and stamp-tax treatment at payment date
- Reconcile gross calculation, deductions and bank transfer
- Use a written approval for assumptions and disputed benefits
- Coordinate legal review for contested termination reasons
Frequently asked questions
Does every resignation create severance pay?
No. Entitlement depends on the legal reason and applicable exceptions, not the employee label alone.
Are bonuses included?
Regular and qualifying benefits may enter the vested gross base; one-off items require specific review.
Does every resignation eliminate severance entitlement?
Not necessarily. Turkish law recognises specific circumstances that require a fact-and-document review.
Are meal and transport benefits included?
Their regularity and nature must be assessed. Do not include or exclude a benefit automatically without reviewing the actual arrangement.
Official sources
Legislation last reviewed: 1 August 2026
Mikail Ege
Certified Public Accountant · SMMM
Mikail Ege works across accounting, tax, financial reporting, financial advisory, fintech and payment institutions.
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