How Is Severance Pay (Kıdem Tazminatı) Calculated in Turkey?
Who is entitled to severance pay in Turkey, which pay counts, what the ceiling is and how to find the net amount.
Severance pay (kıdem tazminatı) is a statutory right paid for each year of service when an employee leaves under certain conditions. The method is clear, but people often confuse which pay is used and what the ceiling means.
When does the right arise?
Generally the employee must have worked at least one year for the same employer and left for a justified reason, or been dismissed without justified cause. Retirement, military service and some other situations can also qualify. Ask an employment lawyer about your own case.
Formula
30 days of gross pay for each full year of service, with extra months and days added proportionally. Someone with 6 years, 9 months and 10 days of service on 40,000 monthly gross pay gets about 40,000 × 6.78 = 271,000 gross.
Which pay counts?
Not just base salary: regular benefits such as transport, meals and bonuses are included. Enter that total in the calculator.
The ceiling
The state sets a ceiling for each period. If your pay is above it, the calculation uses the ceiling. Look up the current figure in official announcements and enter it in the tool.
Deductions
No income tax is withheld from severance; only 0.759% stamp tax. The net amount is therefore very close to the gross one.
- Notice pay is a separate entitlement and is not included here.
- Unused annual leave is paid separately.
Use the calculator for an estimate; for a binding figure ask payroll or a specialist.