Severance Pay Calculator
Enter your start and leaving dates, your last gross pay and regular benefits. You get 30 days’ pay with benefits for each year of service, capped at the limit in force on your last day, plus a pro-rata share for extra months and days; only stamp duty is deducted.
- Length of service7 years 7 months 23 days
- Monthly gross pay with benefits55,000.00 ₺
- Cap on the last day73,729.87 ₺
- Pay counted per year55,000.00 ₺
- For whole years385,000.00 ₺
- For the remaining months and days35,549.09 ₺
- Gross severance pay420,549.09 ₺
- Stamp duty3,191.97 ₺
- Net severance pay417,357.12 ₺
Severance pay cap: Çalışma ve Sosyal Güvenlik Bakanlığı (tavan tablosu; HMB memur maaş katsayılarından hesaplanır)
Stamp duty: GİB
How it is calculated
Turkish severance pay rests on Article 14 of the old Labour Law 1475, still in force, and is based on the last wage. That wage includes not only base pay but regular extras paid in cash or kind: transport, meals, bonuses (the “dressed” wage). The amount for one year of service may not exceed the yearly retirement bonus of the highest-ranking civil servant. This cap follows civil-service pay coefficients and is renewed every January and July; the cap on the leaving (termination) date applies. The current cap is ₺73,729.87 from 1 Jul 2026; it was ₺64,948.77 in the previous period.
Kıdem tazminatı = min(Giydirilmiş aylık brüt, Tavan) × (Yıl + Ay ÷ 12 + Gün ÷ 365); Net = Brüt − Damga vergisiEach full year of service earns 30 days’ gross pay with benefits; each extra month adds 1/12 of that and each extra day 1/365. The yearly amount may not exceed the cap in force on your last day: ₺73,729.87 since 1 Jul 2026. No income tax or social security is withheld; stamp duty is 7.59 per mille.- Find the length of service from the first day of work to the last day worked, in years, months and days.
- Work out monthly gross pay with benefits: add the monthly value of regular extras to the last gross pay.
- Find the cap in force on the last day; if pay with benefits is above it, use the cap.
- Multiply that pay by the whole years; add 1/12 of it for each extra month and 1/365 for each extra day.
- Take off stamp duty at 7.59 per mille; what is left is the net severance pay.
Example
An employee who started on 1 March 2019 and left on 15 August 2026, on ₺60,000 gross plus ₺5,000 of regular benefits, has 7 years 5 months 15 days of service. Pay with benefits, ₺65,000, is below the July 2026 cap (₺73,729.87). Seven years give ₺455,000 and 5 months 15 days ₺29,754.57: ₺484,754.57 gross. After ₺3,679.29 stamp duty, ₺481,075.28 is paid. Someone on ₺100,000 with exactly 10 years gets the cap for each year, ₺737,298.70 gross.
Frequently asked questions
What is the severance pay cap?
From 1 Jul 2026 the most for one year of service is ₺73,729.87; it was ₺64,948.77 in the previous six months. It follows the civil-service pay coefficients set by the Ministry of Treasury and Finance and is published by the Ministry of Labour. The cap on your leaving date applies; if your pay is below it, the cap makes no difference.
Who is entitled to severance pay?
You need at least 1 year with the same employer, and the contract must end in one of these ways: dismissal (except for gross misconduct), resignation for just cause, compulsory military service, retirement or meeting every pension condition except age, a woman leaving within a year of marrying, or the employee’s death. Someone who simply resigns normally gets none.
What counts as pay with benefits?
On top of base gross pay, regular extras in cash or kind are added: transport, meals, heating, bonuses and premiums. A bonus paid once or a few times a year adds 1/12 of its yearly total to each month. One-off payments, overtime pay and expense refunds are left out.
Is severance pay taxed?
Statutory severance pay is free of income tax (Income Tax Law Art. 25/7) and social security; only stamp duty at 7.59 per mille is deducted. Any amount paid above the cap under a contract is taxed like wages.
How are part years counted?
By law, time beyond full years is paid at the same rate: each extra month adds 1/12 of the yearly amount and each extra day 1/365. Time at other workplaces of the same employer counts too.
What if severance pay is paid late?
Severance pay is due when the contract ends. If it is late, a court awards the highest deposit interest rate for the period of delay.